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Topic
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My daughter just bought a lot in a 4 lot older strata.
The place has been run down over many years and the building needs a lot of remedial work )Wood rot, painting, roof repairs
The strata was self managed up till may 2017 after which a SM was appointed (Thank God)
The admin and capital works funds were bare so at the AGM the 4 members voted for an admin fund levy and a capital works fund levy
Two pensioner owners did not do the sums and are now surprised that total levies have gone up some 50%
The increase in levies is justified and was voted against the proposed budgets.
The two pensioners are now claiming poor.
What avenues are there to have them pay and keep them happy.
Robert
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Replies
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As you probably know, the owners have an obligation to maintain the common property. If the works aren’t being done, ultimately they are devaluing their properties. However, strata levies can be difficult for pensioners and if they are used to low levies it is more of a shock.
One option for them is to enter into a payment plan for levies in arrears – a payment plan needs to be approved by the owners at a general meeting.
Another option is for them to approach a bank about a reverse mortgage. The Department of Human Services also offers a pension loan scheme at lower rates.
Whatever way you cut it, if the common property needs work, it needs work, and delaying it because someone can’t pay is counterproductive. The problem your daughter will have is that they are likely to push for lower levies next time, and/or refuse to approve any higher levies.
Perhaps this may be a situation where a strata loan could be applicable. The repairs and maintenance can be addressed now at today’s prices and levies are used to repay the loan. Food for thought.
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