TAKE AN INTEREST IN YOUR STRATA AFFAIRS

by Administrator 19. January 2015 23:40

We often hear from our investor clients that they don’t know why their quarterly levy contributions have risen or why a special levy is payable.

In such instances we ask if the client attended the strata meeting or obtained the agenda and minutes of their strata plan’s meetings to gain an understanding of the changes in strata contributions.

Often our clients tell us they don’t have the time to attend meetings or simply are not interested - feeling that participation in strata affairs could be a burden on their time.

The purchase of an investment property is the largest investment other than the family home that most people will make, hence it is imperative to be aware of what is happening within the strata scheme and to become involved in the decision making processes of the strata plan, otherwise others can be affecting the expenses that you incur which ultimately determines your immediate outgoings and the profitability of your investment.

Becoming strata aware does not mean that you are tied to decision making processes or are in constant need to attend meetings. However, it does mean that you are involved in making sure that your money is being used effectively and that you know where your levy contributions are being spent.

To protect your investment, we suggest:

- You attend strata meetings and committee meetings so you are part of the decision making process

- Become familiar with how your strata plan operates and who are the committee members and your strata manager

- Ensure that your building is adequately insured and that the appropriate budgets are being prepared for current and future expenses.

By being strata aware you are protecting your investment and at the same time saving yourself dollars.

 

Article and research on behalf of LPMA (Leading Property Managers Australia)

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