strata meeting

[giraffez]

I've got a investment property and its my first one so please bear with my ignorance. This week I received a letter from strata saying that the annual meeting is coming up.

Do people usually attend these meetings because according to the last set of minutes only around 5 people showed up. They have also provided a proxy/voting form. Some of the agenda items are like installing new security mechanisms, changing remotes, changing locks and to do this they are proposing a new levy. As an investor, am I right to vote against this as it increases my costs?

Thanks

 

[thedon]

Hi

Go along and participate as you will get a say in what goes on! If I were you I would stay low key with the ideas on the first meeting and don't rock the boat. As for spending money my advice is don't scrimp, remember all the things the strata does is being split between all tenants so cost is minimal and usually it is for things that do need to be done, particularly to enhance the look of you investment. I say go for the new levy, then chip in a few ideas of things you would like done to add value - new gardens? painting? renovating common areas, etc etc

Don

 

[peastman]

If at all possible go to the meeting. A lot of investors dont bother and then moan about decisions that were made. By attending you will get a greater understanding of your investment. Being on the commitee also has benefits. There is not much work involved and you can steer decisions to your way of thinking.

A personal example:-
I own a small factory in a complex of 44 factories. At the AGM a couple of years ago (Which I was too lazy to attend) it was decided to raise money for a very expensive video surveillance system costing about $40k. It took the whole year to raise the money as a lot of owners who did not attend the meeting were not too keen on the idea. At the next AGM, I attended, and put myself up for a committee position and ended up chairman. I researched video surveillance and got a better system at half the price, saving us $20K. This has now left us with a large cash float for future upgrading of the complex.

So go to the meeting and be involved with the decision making, it's to your advantage.

 

[giraffez]

Could someone explain what the proxy form is for? What does it mean when I fill one in? Is it true that after the meeting, the chair send out a copy of the minutes and the owners have 28 days to object the decision?

 

[The Y-man]

Proxy is used to cast your vote through another person representing you at the meeting.

Yes you have 28 days to counter a decision IF there is no quorum at the meeting.

Cheers,

The Y-man

 

[travelbug]

Seeing that you know little about strata management I think it is your best interest to attend.

Listen to what goes on, meet other owners.

Find out about the new levy. Have a say on how much it will be. Read your financial report so you know how much the levies, sinking fund etc are and what things cost each year. That way if you want to ask questions at least you have a background knowledge.

As mentioned you can get someone else at the meeting to vote for you by giving them the proxy form. It's a bit difficult though, when you haven't been to a meeting and don't really know the issues.

As suggested I'd listen at the first meeting. Maybe ask a few questions if you are unclear on something.