Help! Heritage Apartment - expensive bodycorp...?

[artdecolover]

Hi,

I need some advice! Recently an inner city heritage apartment has caught my eye. I intend to use as my PPOR. It is a two level one bedroom plus study apartment, located in a heritage building/precinct. Unfortunately, the BodyCorp seems **very** expensive. On the positive side - the same owner also sold the identical, next door two level 1br apt to this one for $315k 2 months ago. Includes undercover parking, security entry, 5x4.1m outdoor decking.

So, the stats:
- 80k (my wage)
- $280k my offer price
- $30k dep
- $263k loan (after stamp duty & LMI)
- $300pw (current rent - tenant vacates Jan '14)
- $2800 annual (heritage) bodycorp

I will be chasing up further details today about rates, depth of sinking fund, section 32, and really trying to work out whether I can afford it.

Positives-
- Stunning building
- Part of heritage precinct
- Study is big enough to convert to a tiny second bedroom
- Seems under market price
- 5 mins walk to tram; 10 mins walk to train

Negatives
- V high body corp

If you have any advice I would really appreciate it!
Are these rates ridiculous?
What other costs must I be taking into consideration for the whole purchase?

A little about me - I am a 29yo single professional. This property is nearby me, seemingly would suit my inner city lifestyle with the study giving a little additional scope for future.

Thanks so much!
Kristy

 

[DaveM]

$600-$700pq is the norm these days, $2800pa isnt very high. $10k+ is high

 

[artdecolover]

@DaveM
- Bodycorp is 2800 annually.
- I am on 80k per year.
How high is high? I am working with my above constraints in regard to my own affordability. I am trying to figure out complete costings to determine affordability. I am keen to understand what is an average bodycorp for apartment complexes also. As this is a heritage building it seems to explain some of the blowout.

 

[DaveM]

Heritage will be a factor, as may pending repairs/upgrades/compliance requirements eg fire services. Ask the agent to get the last strata meeting minutes from the owner, they will help identify why they are set at that level

 

[Jamie M]

@DaveM
I am trying to figure out complete costings to determine affordability. I am keen to understand what is an average bodycorp for apartment complexes also.

Hi Kristy

It depends on a number of factors - including the amenities in the complex and the state of the sinking/admin funds.

I've got a couple of IP's in body corp complexes. One is a townhouse that costs just over $800 p.q. The other is a unit in an older complex which is around $350 p.q

The body corp cost you've mentioned isn't ridiculously high - but you're right, it does need to be taken into account when working out your own affordability because you won't be ecstatic opening that $700 bill every 3 months!

Cheers

Jamie