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I am a unit owner in unit owner. This quarter my Strata fees have risen from $835 to $850 per quarter.
I don’t know about regional and country towns in NSW, strata fees in there blocks, but in Sydney where I live is $850 per quarter in admin fees alot.
We have 2 lifts, a swimming pool,an outdoor car park,a non-live in caretaker who is full-time and comes to work Mon-Friday 9am-5pm.
An outdoor car park with a roof. The caretaker’s main work I find is a lot of gardening, and liaising with tradespeople as the 1st point of contact, when work done common property eg Swimming pool, fire exit doors, etc.
I’m now hearing on the grapevine, shocking stories of $5000 per quarter sometimes even more, alot more in strata fees, especially in the sydney C.B.D.
Is $850 per quarter a rip-off, as I’m thinking of complaining to our OC, or is it reasonable by today’s standards. Im out of touch a bit with modern strata costs, when I hear the new developments, with the Indoor heated swimming pool, Gym, indoor car park etc, lift. We have a humble outdoor 1980’s style suburban swimming pool.
1 thing i’m certain off, is swimming pools, and lifts raise strata fees. I am thinking of putting it out there at this years AGM, scrap the swimming pool, as it’s not used enough over the duration of the calendar year, in proportion to the amount of residents we have (80 units/approximately 120 residents).
I admit I have lived here for 5 years, and haven’t used the swimming pool even once. I go to the beach instead, fresh salt water, and get a sun tan.
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There are quite a few matters to take into consideration. Given that fees usually are increased once a year, a rise from $835 to $850 only represents 15/835, or 1.7%, less than CPI. Whether or not you use the swimming pool and lifts, they have to be maintained, and in fact will add value to your complex and its component units. If you’d bought a unit without those facilities, then maintenance naturally would be cheaper. Your caretaker probably costs you around $70,000 per year (inclusive of leave, sick pay, insurances and super), so that alone based on 80 units would take up most of your levies for a quarter. Don’t forget that also included in your levies are insurance on the building and water usage charges. Also you should be contributing to a sinking fund to cater for ongoing maintenance. If you want to get rid of the pool then a special resolution could be put forward at a General Meeting, but in my opinion you’d be reducing the value of everyone’s unit if it were to be approved. Don’t complain unless you’ve done your homework, each complex is different.
I think $850 a quarter is cheap, I’m trying to figure out how the scheme can run a budget on that amount, given what you have. The owners corporation has to pay for things like electricity, insurance, strata manager’s fees, water, maintenance of the common property. How much are you paying into the sinking fund?
If you removed the pool that would cost you money, a lot more money than you are paying now. Note also DaveB’s comments, the pool forms a component of the value of your apartment.
I’m with Scottie on this. $850 a quarter is so low that I would be wondering what is being skimped.
On the question of removing the pool, take in the cost of the rebuild and the reduction in value of your property and it doesn’t add up to a real saving.
So, how is your sinking fund?
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
At the risk of sounding glib, a $1000 special levy is what you get when your quarterly fees are only $850. A properly managed building would have already had that money in the bank and you wouldn’t have to find all that cash all at ones (which may hurt some of your neighbours on reduced or fixed incomes).
That’s one good reason for the tightening up of the Sinking Fund rules in the upcoming strata law reforms.The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
Matt, you’re lucky it’s only $1,000. An elderly pensioner couple I knew a few years ago, had to come up with $10,000 (special) levied on each unit to underpin the sinking building. The old age pension being their only income, they were stressed & distressed to no end. I agree with the others; you need to take a serious look at your sinking fund.
Hi guys,
I have helping a friend with their strata fees, she lives in a building where there are 6 units but, there is another building (Same Scheme) where there are 32 units. Her block is well kept, and the people that live there never ask for anything, the other unit block seems to be using all the money in their sinking fund, I’ve heard stories of people renovating their internal unit space with that money.
Anyway, she has a very good job and has saved enough to buy a house. I have advised her that is her best option, the only fees she’ll pay in a torrens title home are, rates, and that’s it. As for the usual bills, electricity, water, gas, she pays that now on top of her quarterly levy.
Units are nice but, are an absolute nightmare when it comes to levies and Dodgy Strata Managers.
Another friend purchased a unit a year ago, before he moved in, the owners corp decided to apply a special levy of $25k, my friend was beside himself upon moving in. And the sad part, it was all legal, not a thing he could do about it, even though he request a 109 cert, this EGM took place after he received his cert.
So in short, if you can afford to sell your unit and buy a home, do it. I would rather have a home that is far away, then to have a unit that is close to everything, and not being able to pay my fees when I’m an old pensioner.
I’ve heard numerous stories of people being dragged to court over their levies, and in some sad cases, end up selling their unit to pay for said levies. Unfortunately, nobody is told any of this when purchasing in a Strata Scheme, everything is all rosey until you have some rusty nail in your complex making it hell for you, and those dredded levies keep going up and up.
My 2c
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