Body Corporates and are they for you?

If you buy into an apartment complex or a unit area that shares facilities collectively with other residents, then you will most likely encounter a body corporate.

A body corporate, also known as a strata, community or owners corporation organisation is responsible for facilitating maintenance, managing the group’s finances, handling disputes and above all assisting the corporation members in maintaining a happy, healthy environment that all residents can enjoy.

There may also be  a property manager on site who may be a resident or not, that generally manages the day-to-day running of everything.  This includes:

• Keeping financial records
• Notice and records of meetings
• Arranging insurance cover
• Facilitating claims
• Managing all common property maintenance

As a property owner within a body corporate zone, you will need to make regular contributions to pay for the service, insurance, maintenance and any other projects that may occur within the community. These fees will vary depending on what facilities the complex offers and what outgoing expenses it may have. The body corporate committee, as suggested by the property manager, votes on fees and other community decisions.

The body corporate committee is made up of residents from within the community.

There are positives and negatives to owning within a Body corporate and they all depend on your personal preference, the area, and the people running it.

If you are hoping to focus on other things, and don’t want to worry about maintaining a home then a body corporate arrangement is perfect!  Owners of these properties don’t have to worry about external maintenance issues as the body corporate is responsible for the buildings’ exterior and communal grounds. They generally only have  easy care balconies or small courtyards to maintain along with the interior of their home. Body corporates may also develop highly functioning communities that build facilities such as pools, gyms, and communal outdoor bbq sets for all residents to enjoy.

If you are hoping for absolute freedom over your property, you may find yourself coming up to some roadblocks. Body corporates also determine things like what gets built and the aesthetic appearance of everything. So if you plan on building a veranda or painting your home a different colour, you will need permission from the body corporate and that could be very tricky. They may also increase their fees to undertake community projects that you do not support or want be a part of. If you have pets, you need to apply to the body corporate to have them reside in your home.

Overall, only you can decide if working with a body corporate suits your arrangement. People who are simply investing or renting their places out will generally benefit a lot from a body corporate, whereas someone who actually lives within it, and plans to stay there for a long time may find them too restricting.

If you have enquiries, call Hicks Real Estate team today on: 07 3355 6845.