Hey all,
Just put an offer in on an apartment I'm interested in, I had a few concerns that the sinking fund is awfully low however after looking at a few older threads perhaps it's not as bad as it seems. So I'd like your thoughts, please.
The building has 16 units and a sinking fund with $4700 in it, $2300 in the admin fund. That doesn't seem like a lot? Strata fees are $453 per quarter for the two bedrooms, I presume the single bedrooms probably pay less.
Anyway, these rates are similar to what I'm paying at my other unit two suburbs away that has 18 apartments. Difference is, the building isn't kept anywhere near as neat. Electric gate to undercover parking is broken, internal hallway lights seem to all have globes blow, gardens could be kept a bit better. So I'm thinking they're probably just paying too much and receiving too little in return. Obviously I'll find out more about this once I have a strata report done.
I accept because of the area's different demographic, it will never be as nice (probably no point fixing the gate), but is it naive of me to think once in there I can look to re-negotiate management and cleaning fees to better rates? Then, perhaps with the money saved we can re-carpet the hallways and get the lights back in action (I presume this is a liability thing too?).
Cheers
Greg
Just put an offer in on an apartment I'm interested in, I had a few concerns that the sinking fund is awfully low however after looking at a few older threads perhaps it's not as bad as it seems. So I'd like your thoughts, please.
The building has 16 units and a sinking fund with $4700 in it, $2300 in the admin fund. That doesn't seem like a lot? Strata fees are $453 per quarter for the two bedrooms, I presume the single bedrooms probably pay less.
Anyway, these rates are similar to what I'm paying at my other unit two suburbs away that has 18 apartments. Difference is, the building isn't kept anywhere near as neat. Electric gate to undercover parking is broken, internal hallway lights seem to all have globes blow, gardens could be kept a bit better. So I'm thinking they're probably just paying too much and receiving too little in return. Obviously I'll find out more about this once I have a strata report done.
I accept because of the area's different demographic, it will never be as nice (probably no point fixing the gate), but is it naive of me to think once in there I can look to re-negotiate management and cleaning fees to better rates? Then, perhaps with the money saved we can re-carpet the hallways and get the lights back in action (I presume this is a liability thing too?).
Cheers
Greg