body corp and rates?

[2CheekyMonkeys]

we are looking to buy something cheapish, we are thinking of a townhouse or a villa. just wondering though do these involved BOTH body corp fees and rates? if so, are they in the long run dearer than a house?

[Maruschke]

Yep we pay both b/corp (400 a quarter) and rates (400 a quarter). It really depends on how expensive your b/corp is, and things like pools, electric gates and elevators really jack the price up.

Remember that b/corp pays for some of the insurance that you would have to get if you owned a house, also, they pay to maintain the outside of the dwelling and the property.

Unit rates are cheaper than house rates though.

I don't know how it really works out in the end, but we love our unit.

HTH!

[Arimeh]

Hollo it really depends on the price of the body corp fees as to whether they work out cheaper than a house..

Some body corp fees are really really cheap per quarter - and some are ridiculously high.

But I pay $2,000 a year for rates on my house - so cheaper than what Oscar has to pay per year on hers both together.

[Maruschke]

Mel our land value is insane, something like $1.2 million! I think thats why we pay so much in rates, because it is partially based on the land value that the units sit on.

[2CheekyMonkeys]

thanks, so it is something i would have to talk to the real estate agent about? or do you speak to the body corp themselves? i have no idea about this really :-) there is a townhouse we are going to look at and the body corp is 2000 a year but there are 4 pools and a tennis court in there, so i assume that it would be bigger fee than the usual smaller complex?

[Arimeh]

Hollo - I'm glad you are in Queensland - I hate it when I give advice that might be wrong in other states.

When you sign the contract - or look at the contract - they will have included a body corporate disclosure statement annexed to the contract. That should outlay all the fees - sometimes the agent isn't aware of them - and you USUALLY are recommended to do a body corporate records inspection search in your conveyancing. I recommend it to all my clients when I do conveyancing (I'm in litigation at the moment)

So if they don't put it on the disclosure notice - nothing stopping you asking the agent what they are. They may be willing to shell out for a body corporate information certificate (different than the search - this costs $49.00 - search costs $200 usually) and the certificate will tell you how much everything is, when the periods are etc, lot entitlement etc - so you can see your percentage as opposed to the other units etc - but the search will go into finer details and tell you where the money in the sinking fund is going.

HTH.