What is an average Main Beach Body Corporate Levy?
$7,761.59 ($149.26 weekly)
We posted a similar article on our blog 3 ½ years ago and you might be interested to know the figure then was $7,919 per annum.
‘What are the body corporate levies?” is often the very first question a buyer asks us about a property, and we do understand why. It is not an insignificant amount and is another burden on top of council rates, mortgage etc.
There are many elements the body corporate committee need to consider when deciding the levies for a scheme including:
• Onsite managers fees
• Electricity for the common property
• Common property water charges
• Gardening and lawn mowing
• Lift maintenance
• Maintenance of facilities including swimming pools, tennis courts, saunas and anything else for residents’ use
• Repairs required
• Upgrades and replacements required
• Fencing, signage, pathways
And there are other considerations besides the ones listed above.
Our sample group includes a scope of 1 bedroom apartments, penthouses and everything in between. In Main Beach we are predominantly populated with 2 bedroom apartments, and subsequently our average reflects this.
Our lowest figure in our sample is $4,660 per annum and the highest is $21,649 per annum.
There are two parts to a body corporate levy –
1. sinking fund contribution
2. administration fund contribution
Insurances can also be in addition to these figures. In most cases the administration fund component of the levies is the largest as this is utilised to run the building for the year, including repair and maintenance of plant and equipment. The sinking fund component is used for replacement of assets, renovation of common areas, repainting, etc. Sometimes you will find this is skewed and the sinking fund contribution will be higher than expected. When this happens, the committee has generally decided on a programme of replacement throughout the complex in the future. Main Beach is a seaside suburb and the saltwater can take its toll. Many buildings have had windows, doors and balustrading replaced or have undertaken to implement future replacement. Lifts need to be regularly maintained and on occasion refurbished. Modernisation of facilities, foyers and grounds are often high on priority lists.
So, considerations for the body corporate committee when setting the levies for the year are complex. Frequently buyers will not consider a property if they believe the levies to be too high, or buyers choose one property over another because the levies are lower.
However, this approach needs caution. What is to say that the levies will not increase in the next year? Or that levies on the more expensive property will decrease?
In general, we don’t believe it’s the best way to make a decision on where you should live! Rather, do your homework, do a body corporate search and with facts in hand, make a measured decision.
Smaller low rise complexes do generally call for a lower levy as they often don’t have onsite managers, lifts or numerous facilities. If you are trying to keep your body corporate levies bill down this might be the path for you.
High rise buildings with many facilities usually have higher levies, or at least levies in the range of our average.
‘How much is in the sinking fund?’ is another common question and if that figure does not instil confidence in a buyer the sale can be lost. Maintenance is required on every property whether it be a free-standing home or an apartment, so it is imperative that the sinking fund has adequate funds in it. Lost sales will eventuate in a lower sale price generally in the building…
I know I would prefer to reside in a complex with a well-managed body corporate. Although it might not be obvious, in the long run it could actually be more cost-effective and definitely the most comfortable!
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PHONE : 0408 00 00 88
Posted By Shelley Fuller
18 years experience in the both Sales and Property Management makes Shelley Fuller an asset to the MBPS Property Management team. Shelley has extensive experience in managing real estate office as well as being out 'on the field' conducting Routine Inspections and Vacate Inspections when called upon to do so. Shelley has extensive knowledge of real estate law and the PO Act so our landlords' investments are in safe hands whilst she is overseeing the smooth transition from vacating tenants to new tenants taking possession of various properties.
Updated : 11th October 2021 | Words : 638 | Views : 1396