Ads with false body corp fees?

[Wazza007]

Howdy

Ads with false body corp fees?

Ive been looking at Townhouses in various complexes throughout SE QLD for the last 4 months. Ive made 2 trips to Brisbane to inspect various properties.

What Ive found is the Body corp rates advertised are well below the actual figure, I normally only found this out by talking to the complex managers, we were even given a body corp disclosure that showed the rates were nearly half of what the actual rate is.

The ads normally have "body corp approx" does this allow the REA to put any figure they want?

Is this legal? can I report this to anyone?

 

[quiggles]

Try the State Fair Trading department. That's outrageous, if correct.

Even if they are using technicalities to skate around the issue (ie body corporate fees are what they say, but the sinking fund is as much again) it still sounds very misleading.

 

[buzzlightyear]

Quiggles, have you asked the marketeers of the complex's to explain the difference in your figures and theirs?

They don't have a little astericks next to the number, indicating certain assumptions in their calculations?

 

[quiggles]

Not me, it's Wazza007 whose due diligence showed this up. And good on him for looking!

 

[buzzlightyear]

Sorry that should have been Wazza007. I sometimes type faster than I think

 

[Wazza007]

No worries Buzz

I should have added these properties are all around the 5 year mark and are advertised via realestate.com etc.

When I ask the property managers the answer is always the same "the property developers underestimated the original fee"

which I read as - we sold these with a misleading low figure to get the sales.

There is still one advertised on the web and says body corp $49 pw but I know and the REA knows the true figure is $79pw. They havent tried to cover it up by saying its split into sinking fund etc.

The other thing we have noticed is town houses we have been looking at have had on average $10 pw rent increase (about 4 properties) when I asked the REA about this he told us the vendor is funding this for the duration of the lease and it makes the Yield look better.

 

[Aceyducey]

Tell ACA or TT about it - it's the sort of story they can sink their teeth into.

The government will get involved when there is a big media play.

Cheers,

Aceyducey

 

[<KS>]

/me hopes they cop huge fines - the low lives!!

<KS>

 

[Ausprop]

doesn't Queensland have a strata disclosure statement like here in WA? In WA it's a form 28 - if so just ask to see that.

 

[shazza]

doesn't Queensland have a strata disclosure statement like here in WA? In WA it's a form 28 - if so just ask to see that.

Yes we do have that here.
But I think what Wazza007 is getting at (correct me if I'm wrong Waz) is that if he already new the real BC figure he wouldnt be looking at the townhouses because the cashflow wouldnt work. I can understand them being peeved to go all that way under a mis-representation.
The thing with B/c fees - they will pretty much always go up - insurance, increased cost of running etc. I'd stay away from complexes with tennis courts - wonder if anyone used them and whatever fancy things the developer thought would attract buyers. The more extra stuff the higher the fees. A pool adds enough to the fees but at least in Qld it gets a lot of use.
Also with older complexes, if the committee havent been increasing the fees there is likely to be problem later on. A healthy balance in the B/c fund (and sinking fund) is a good sign.

I guess the only thing you can do is to get a verbal confirmation from the agent re fees and if they lie get up them.

cheers Sharyn

 

[willair]

The other thing we have noticed is town houses we have been looking at have had on average $10 pw rent increase (about 4 properties) when I asked the REA about this he told us the vendor is funding this for the duration of the lease and it makes the Yield look better.

Waaza,
next time ask the real estate person who he or she is working for,
dont walk away from this issue, the media will take these stories
with both hands,but why not send a leter off to the QLD,Ombudsman
they will investigate what you find unreasonable.
good luck
willair

 

[Wazza007]

Yes we do have that here.
But I think what Wazza007 is getting at (correct me if I'm wrong Waz) is that if he already new the real BC figure he wouldnt be looking at the townhouses because the cashflow wouldnt work. I can understand them being peeved to go all that way under a mis-representation.

cheers Sharyn

Hi Shazza

thats pretty much it - the REA told us he had a new body corp disclosure but I questioned the complex manager who told me about the rate - which had started the month before. When we looked at the body corp disc it was for the month or 1/4? before the rate went up. Ive come across this in another complex as well, both complex's have just hit 5 years old , must be something happen with the body corp/ sinking fund around this time??

Im thinking I'll send something off to the QLD REI.

 

[shazza]

At a guess I'd say there probably hadnt been any real increases in B/c for these complexes since they were started so of course the B/c funds are starting to run a bit low. The people on the committees probably have been voting to keep fees the same to save money.
That's one of the reason's to get on the b/c committee and make sure people dont make short term decisions.
At our last meeting we actually voted to increase the b/c fee a little - the alternative was to dig into the savings. But luckily we are all in for the long run.

Is there a way of verifying (maybe phone) the advertised fees before making the trip?

cheers Sharyn