Header Ad Module



No announcement yet.

Qsts about Body Corporate Fee

  • Filter
  • Time
  • Show
Clear All
new posts

  • Qsts about Body Corporate Fee

    Hi to everyone first! :P

    I bought my first property which is a city apartment early last year. Back to then, I remember i paid something like $1400 for the body corporate fee(for year 2004). And when it came to 2005's fee paying period, i was surprised to find out that my body corporate fee has been increased to $2200. Of course it has been the same for everyone in this building. I don't see any big/expensive improvements to the building. And I checked the statements which were posted from the body corporate management company for how they spent the money. I saw things like $5000 for telephone cost etc. Wondering how they spent all that money What should I do if I want to know more about this

    Recently I have been noticed that our hot water supply system will be changed to a user based system which means I will have to pay about $70 or more per month (for just 2 residents on a normal usage base) plus $150 as a one off bond if I want to continue use hot water in my apartment.

    Now, A: I certainly think this hot water supply company is very expensive. Anyone can give suggestion for more cost-effective options?

    B: I don't understand why the management company had increased the body coporate fee by nearly 50% and still not covering the cost of our hot water supply. (Though the last year's fee which was $1400 covered it. )

    Any help would be greatly appreciated!


  • #2
    Hi Elle, welcome to the forum

    I have read that some developers keep the body corporate fees to a very low level for the 1st year to lure buyers, and then raise the fees the following years when reality sets in.


    • #3
      I suggest you to participate to the AGM and check what they are doing.

      In my BC in wellington there is the Manager of the property management company that collect proxies to vote on his own budget and reporting...
      If it is not a conflict of interest....


      • #4
        BC fees are set by first deciding on the budget for the whole complex, then dividing that amongst the owners.
        In the budget is also the Body Corp Secretary fee, typically $250 or so per unit per year.
        Lifts always add lots to the budget & so does planned maintenance.
        When you see $5000 for phones, you should be asking the BC secretary what that is for (normally at the AGM)

        These budgetted amounts should slowly grow over the years and only see big increases for big issues.

        On top of that there is normally a Sinking Fund, which aims to collect money over time for known future issues such as painting or big maintenance items.
        The Sinking fund is pretty arbitrary amounts (unless there is a known $1mill repaint needed in 3 years) so can make big variations in yearly fees depending upon how much those at the AGM decided to charge this year.

        Should the place have any leaky issues, then extra levies will normally be charged on top for Legal & inspections etc

        If you are having water meters installed (big mistake as far as I can see) the BC will have to pay for that as well, which may be where your big increase has come.

        As Stated above- Go to your AGM & Ask the BC secretary.
        These BC admin people need to be kept in line otherwise they can get very generous spending your money.


        • #5
          Just a heads up - Elle started this thread in 2005, so don't hold your breathe waiting for a reply.

          Premium Villa Holidays in Turkey


          • #6

            Shows how much notice we take of dates doesn't it ?
            or it could be an indication of how quickly time flies when things are busy
            or perhaps alien abductions