Setting up and running a new Body corp on the cheap

[always_learning]

Dear Forum,

Well let's face I am cheap, unless I have clear reason to pay extra I will always seek the cheapest way of doing anything. And now my evil eye of cost cutting is looking at the body corp.

I have just completed a 3 unit development in outer suburban melbourne, I have a offer from a body corp manager to set up an run the body corp at a cost of $1000 per year plus $100hour for any non-standard work (non-standard list seems quite long). That would be fine for a manage of a number of units. However in my development the shared common property controled by the body corp is in fact just a driveway and the fence along the driveway, so paying $1000 per year to "run" this body corp seems quite a lot of money. Basically the work is to keep the minutes updated and get public liability ($1000/year) insurance for the driveway areas. Also the body corp manager keeps "up to" 25% commisson from the insurance broker.

Can anyone recommend a cheap way to get a body corp registered and any low cost quick and each body corp management services? What about DIY is that possible?

 

[NigelW]

AL

DIY is certainly possible (and if you own the whole thing definitely the preferrable option IMHO). What state is it in? you will need to look at the local strata act to see what its requirements are. Eg in Qld the Body Corp & Community Mgmt Act...

Ring the department which administers the relevant act - they should be helpful...maybe...

Good luck with it and let us all know how you fare.

Cheers
N.

 

[WillG]

Do you need a body corp if you own the whole development ?

 

[always_learning]

AL

DIY is certainly possible (and if you own the whole thing definitely the preferrable option IMHO). What state is it in? you will need to look at the local strata act to see what its requirements are. Eg in Qld the Body Corp & Community Mgmt Act...

Ring the department which administers the relevant act - they should be helpful...maybe...

Good luck with it and let us all know how you fare.

Cheers
N.

Nigel as I wrote the development is in melbourne, which given I have not noted any referendums lately should still be in the sunny state of Victoria.

Anyone got experience with DIY?

 

[always_learning]

Do you need a body corp if you own the whole development ?

At the end wont own the entire development, in fact I will own just one unit with negative equity

 

[the_captain]

No body corp required

HI AL,

I don't _think_ you need a body corporate if you own the lot.

If you want to run one and keep costs low then you need to look at what you want the body corp to do. Since you common areas are small the main thing you should be concerned about is public liability insurance. This should be costing you around $500 per year for upto $10mil worth of cover. The next is utilities and gardening. Lastly you want to come up with a figure to contribute to the sinking fund.

In my last 2 property TXN's (my current PPOR and a dud that I have now pitched), the incumbent body corp managers were a bunch of thieves, rogues and charlatans. The managers of my current PPOR were pinging us around $1500 per dwelling for management fee's + utilities + insurance. We ran it ourselves for a year, then as our neighbours (the only other owner occs in a complex of 3) are moving we decided to get a new body corp involved @ a cost of around $750 per unit + utilities. The previous body corps were also charging us a substantial uplift on the utility cost. To cut a long story short we now get away for around $800 per year all told, but we do the gardening...........and since it's only small dutch box hedges and some sweeping involved it's easy peasy. Previously we were getting charged $100 per month for gardeners that didn't show

 

[NigelW]

Nigel as I wrote the development is in melbourne, which given I have not noted any referendums lately should still be in the sunny state of Victoria.

Anyone got experience with DIY?

d'oh! that's what comes of posting in a rush...