This is something I can't find much information on.
I have an IP in a 6 unit block of units in Auburn. There is a one man body corporate (not me although I am informed of some of the bigger decisions). The body corporate levies are already high at about $740/quarter (with no lifts or pool in building))
Common area (including balconies) have concrete spalling. Also external painting required. All up costs are about $40k.
When body corporate was considering a special levy the Stata manager mentioned strata loans available from Macquarie Bank minimum loan of $50,00 with interest rate of about 12%.
What are the pros and the cons of body corporate taking out such a loan?
Thinking it through if I can access funds at a lower cost and other unit holders can also do same then its a bad decision to borrow.
I have an IP in a 6 unit block of units in Auburn. There is a one man body corporate (not me although I am informed of some of the bigger decisions). The body corporate levies are already high at about $740/quarter (with no lifts or pool in building))
Common area (including balconies) have concrete spalling. Also external painting required. All up costs are about $40k.
When body corporate was considering a special levy the Stata manager mentioned strata loans available from Macquarie Bank minimum loan of $50,00 with interest rate of about 12%.
What are the pros and the cons of body corporate taking out such a loan?
Thinking it through if I can access funds at a lower cost and other unit holders can also do same then its a bad decision to borrow.
