- What is included in Strata?
- How are strata fees calculated?
- Why are strata fees so high?
- Are strata fees worth it?
- Can you negotiate strata?
- Does strata cover building insurance?
- How is strata levy calculated?
- How does a strata loan work?
- Why do we pay strata fees?
- Do strata fees include utilities?
- What’s a strata fee?
- Do all townhouses have strata fees?
What is included in Strata?
What are strata fees and how are they determined.
Strata fees, also called levies, are contributions generally paid quarterly into the strata plans bank account.
These fees are used to fund the ongoing expenses of the scheme for things like cleaning, gardening, electricity and building maintenance, plumbing works etc..
How are strata fees calculated?
In New South Wales, average Strata Fees can be anywhere from 0.3% to 1.2% of the property’s value (0.8%–1.2% with facilities, 0.3%–0.7% without facilities). These Levies are calculated prior to, and then voted on at, the Owners Corporation AGM.
Why are strata fees so high?
Reasons for strata levy increases As mentioned, strata levy increases can be due to adding facilities or because of an insufficient amount of money in the capital works fund to cover repairs.
Are strata fees worth it?
Higher strata fees can be a great sign of a good investment, and low strata fees can actually be a sign of a disaster waiting to happen. Many small and minor maintenance issues can turn into major and expensive ones if left untreated, so I always look for an active strata when analysing potential investment properties.
Can you negotiate strata?
It’s not impossible – you can negotiate a cut in your strata levies. … Before you can act to cut levies, you have to understand what they are. They’re your share of the cost of running your building.
Does strata cover building insurance?
Under a strata scheme in NSW, the owners corporation is legally required to take out strata insurance cover for the building, common property and common contents managed by the owners corporation. Strata insurance covers the following: … Reinstatement and replacement insurance for buildings on common property.
How is strata levy calculated?
When you purchase a property that has strata title, it will have a set number of units prescribed to it. … When the owners corporation determine the levy payable, they will divide the budgeted target by the total number of units. This rate is then multiplied by the number of units prescribed to each property.
How does a strata loan work?
A strata loan is from 1-12 years with up to two years on a fixed rate and up to two years interest only. … The loan is repaid from these levy funds so the new owner, once the property is sold, will continue to pay these levies, and part of which will be used by the owners corporation to repay the loan.
Why do we pay strata fees?
It is the owners corporation that is responsible for the upkeep and maintenance of the common property. Your strata fees pay for this upkeep, as well as other financial commitments. … If there is no facilities manager, strata managers also organise maintenance and repairs of the common property.
Do strata fees include utilities?
Strata fees can be divided into 3 different categories: #1 Administrative fund levies – These are generally daily and regular expenses. This would cover most cleaning and gardening costs, any shared utility bills, body corporate insurance, and any general repairs or maintenance.
What’s a strata fee?
The strata fees also cover a ton of extra expenses as well, such as common services like trash pickup and snow removal. This makes being a homeowner a little less scary and far more enjoyable. You might have your heart set on you a traditional detached home, but try not to rule out condo units and townhouse complexes.
Do all townhouses have strata fees?
Many townhouses, especially those with two or more properties within a development, are often sold with a strata title. … These fees, called body/owner corporation/strata fees will increase with the more facilities your property has, such as a gym or pool.