new sinking fund legislation

[quintets]

I just found out from my strata manager that NSW has passed a Strata Schemes Management Amendment. The purpose of this plan is to force owners corporations to do a 10 year expenditure plan for their sinking fund. Essentially, BC need to get a quantity surveyor to look at all upcoming replacement/repairs and put a budget plan in place (ie. increased levies)

http://www.fairtrading.nsw.gov.au/corporate/publications/ftr47strataschemesinkingfunds.html

Just a heads up for would-be investors to make in your strata check to make sure the legislation has been catered for or else you'll get a nasty levy surprise in the following years.

IMO, this makes units even less attractive in terms of operating costs and control. But it might help put to rest squabbling amongst owners about taking care of the property.

Cheers,

Jireh

 

[JoannaK]

IMO, this makes units even less attractive in terms of operating costs and control.

I disagree with this comment. If anything, it will ensure that Owner's Corporations are more responsible for maintaing the investments of those who have purchased a unit within the building.

Afterall, who wants to buy a unit, and in a years time get hit with a special levy for painting or some other such long term maintence, because the owners in the owners corporation are too stingy to plan for long term maintenance properly.

It's about time Owners Corporations are made to act like a proper corporation that they are!

It's all about maintaining your investment, which should be a high priority on any investors list.

 

[Jimmyjamjars]

In a unit we own, they do a 10 year expenditure anyhow. I think its a good thing.
JIM

 

[WashingtonBrown]

I agree with Joanna

Especially when u factor in ATO ID 2004/934 - to see the implications read this article i wrote awhile ago.


http://www.washingtonbrown.com.au/news_story_sinkingfunds.htm

Regards

 

[quintets]

Hi Jo.

I agree with you overall it's a good thing. I'll admit I was shocked to hear this bit of legislation that seems to have slipped under the radar here at SS. I own a unit, and in terms of pure operation costs, I flinched to have my costs arbitrarily increased via legislation. But hey...it's for the best. I'm an active member of a tight, apathetic BC and I can just imagine the sparks flying when the other owner-occupiers find out at the next AGM (today).

BUT...if it reduces the need to convince stroppy, skin-flint owners (ie. irresponsible BCs, as you put it) to give a hoot about their property, then it reduces one of the big risk areas for strata unit ownership. Yahoo! I'm miffed this block is full of owners-occupiers who seem to think like renters.

I'm glad we picked a strong strata manager when we had the opportunity. He's not scared to actually MANAGE the property and push things with the BC. It makes such a difference.

Cheers,

Jireh

 

[quintets]

mmm...I like this multi quote feature.

In a unit we own, they do a 10 year expenditure anyhow. I think its a good thing.
JIM

JJ, I wonder if you're lucky to have such a farsighted BC. Was it like that when you purchased or did you push for it?

I agree with Joanna

Especially when u factor in ATO ID 2004/934 - to see the implications read this article i wrote awhile ago.


http://www.washingtonbrown.com.au/news_story_sinkingfunds.htm

Regards

Thanks Tyrone.

Jireh

 

[Jimmyjamjars]

Neither, we used to self manage the body corp but when the guy doing most of the work sold his unit, no-one else wanted to take it on so we went with a body corp services firm and they probably realised how slack we were.
JIM

 

[quintets]

JJ,

Self-managing, eh? We thought about doing that, but since we have 12 in the block, it seemed a bit daunting. Yours must have been fewer units.

Jireh

 

[Jimmyjamjars]

Self-managing, eh? We thought about doing that, but since we have 12 in the block, it seemed a bit daunting. Yours must have been fewer units.

Yeah mate, there is 6 in ours. We are still hands on to some extent. We drew up a roster on things such as washing the garage doors down with soapy water, hosing and wiping down the stairwell, cleaning banister rails, hosing of driveway, pruning of palm fronds etc. Each unit owner does it once a month for 2 months, saves a couple of grand a year from when a maintenance service used to do it. Works well for me coz I have a very elderly tenant and I go down every month to pick up the rent and see if he's ok so do my bit while I'm down there, also I can see if the unit needs anything doing to it. A WIN/WIN for me.
JIM

 

[quintets]

Each unit owner does it once a month for 2 months, saves a couple of grand a year from when a maintenance service used to do it.
JIM

You must have alot of owner-occupiers, or landlords like yourself who care. I'm envious. Keep it all going! It's nice to check in on your elderly tenant as well. It's always good to develop some kind of relationship with the folks that use your IP as a home.

Jireh

 

[Jimmyjamjars]

You must have alot of owner-occupiers, or landlords like yourself who care. I'm envious. Keep it all going! It's nice to check in on your elderly tenant as well. It's always good to develop some kind of relationship with the folks that use your IP as a home.

Absolutely, I believe a common mistake that we as landlords could make is to constantly think that we are a better person or higher up the status chain than our tenant. My tenant was a war veteran and has well and truly paid his dues, least I can do is check on him each month. With regards to the maintenance, the ones who don't wish to do their 2 months cleanup have to hire someone at their expense.
JIM