Buying a property with body corp levies

Hi,
My wife and I are looking at buying a property: 1 bedroom apartment.
We've found one we like and are considering it, but while we were looking over the section 32 we've seen that the owners corporation have works to the building scheduled to completed late next year that come in at over $50,000 which will require levies to be put in place to cover the works.

I was put off buy this but my wife wasn't overly concerned.

Just wondering if anyone is able to offer their thoughts/advice or share any similar experiences?

Thanks
 
How many units in the complex?
Has there not been a sinking fund set up to fund or part fund the works?
I'd be concerned, depending on the allocation per unit, but less so if you're units contribution is reflected in the price (maybe by more than a 1:1 ratio).
Could also be a good bargaining chip, too.
 
There are 10 units in the block.

Unfortunately there hasn't been a sinking fund set up in anticipation of the works.

The unit is going to auction so perhaps I should factor these works into what I'm prepared to spend at the auction.

The current owner will be paying body corp fees(excluding any levies) up until mid-2012 to compensate the buyer for the levies ahead.

Thanks for your reply and any other thoughts are welcome.
 
If I liked the place and it ticked all the other boxes, then factoring the levy into the deal would be my plan.
It may put others off. Who knows, you might be the only bidder on the day.
Good luck. Let us know how it pans out.
 
Yes, you're right Rob, it could potentially turn other ppl off.

It can also be the reason some ppl sell - they can't afford the $5K - especially if it is elderly residents who don't have cash and can't get a loan (I'm not saying this is the situation here).
 
If its the roof then it wouldn't put me off as its a one in 40 year expense. Hows the rest of the building look?

Might be worthwhile sniffing around and see if there are any other long term fixes that haven't financially been planned for.

It might not be this $5k special levy that motivating the sale but the planned ones for - the concrete cancer in the stairs, the balconies (that why you couldn't walk out on the balcony on the inspection:D) repaint everything, fire rating upgrade etc - all things that have been discussed but not recorded. Block in Coogee was up for $25k per unit to remedy concrete cancer in balconies and that was 8 years ago.

Cheers
 
The rest of the building looks pretty good, considering is probably getting on 40-50 years old.
I'm going to another open tomorrow so I'll inspect the building much closer.
There are other items listed for repair which include replacing part of a broken sewer pipe, and getting the property up to current health and safety standards.

Excuse my lack of knowledge, but what exactly is concrete cancer?

Any clues as to how to spot this problem in a building.

Thanks for your reply
 
Excuse my lack of knowledge, but what exactly is concrete cancer?

Any clues as to how to spot this problem in a building.

Thanks for your reply

Anywhere where you can see cracks developing in concrete which expose the reo inside. Generally it is a rusty colour. What is happening is that the steel reo is rusting and when steel rusts it expands and thus cracks and eventually destroys the concrete.

Cheers
 
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