Bodycorporate - To Avoid Or Not To Avoid
Updated: May 16, 2019
When buying a property most people tend to be wary of properties that have bodycorporate fees. This is understandable as the bodycorporate fees can be quite high, however like any property costs, it needs to be looked at in it’s entirety of the property purchase and ownership proposition before making a decision whether the property would be suitable or not.
Bodycorporates firstly are responsible for insuring the building and common areas of Unit or Townhouse complexes. This is a significant cost that is not paid by the owner but paid through the bodycorporate and is often overlooked when people are looking at and/or comparing properties for purchase. In addition bodycorporate fees cover the maintenance and upkeep of common grounds to ensure that they are in good condition and appearance, but also provide for and maintain the use of facilities such as swimming pools, bbq areas and recreational areas which are normally an additional benefit for buying in a townhouse or unit complex.
For a home owner it is important to consider the upkeep and additional provision of shared facilities such as pools and bbq areas and your potential benefit when weighing the cost of the bodycorporate fees.
For an investor it is important to look at the overall cashflow cost inclusive of, but not limited to rates, water, management fees, and bodycorporate fees against the rental income and taxation benefits before determining if the property is feasible or not.