Only you know what you can and cannot afford. To ensure you are fully informed in relation to the levies always request this information prior to signing any documentation in relation to the purchase of a Strata property. The levies are determined at each Annual General Meeting and therefore are forecast approx. a year in advance.
The Strata Company may have commissioned a Reserve Fund report that forms part of the Strata Company records for proposed maintenance works to the complex over a 10, 15 or 20 year period. This report normally provides a forecast of the costs required to ensure the property is properly maintained and compliant, plus includes the proposed cost of any large maintenance type items such as painting, lift refurbishments, etc.
This report will provide you with upcoming or scheduled works for the repair and maintenance of the Complex. These reports offer a longer term view of the financial commitments of the Strata Company to assist in future preparation of budgets and levies, and providing the individual Lot Proprietors with an outline for forecasting their own future obligations.
The new legislation will require a Strata Company which:
- has ten or more lots or
- has a building replacement value as set out in the Regulations (there are some schemes with less than 10 lots which have a very high building replacement cost)
- have a reserve fund. The Act will not specify how much money needs to be held in a reserve fund.
- prepare a 10 year maintenance plan setting out:
- the maintenance, repairs and renewal or replacement of common property in the scheme and the personal property of the strata company likely to be needed over the next ten years, and
- the estimated cost for the maintenance, repairs and renewal or replacement.
Items such as Shire Rates, Water Corporation rates, Land Tax and other Government taxes/charges are charged to individual Lot Proprietors directly from these agencies and therefore are additional to the Strata Company Levy.