Quote:
Originally Posted by Presto
Beware of cheap strata fees. New buildings always have their initial strata fee set to a low amount. Some, even guarantee not raising strata fees for 3 years. Of course, at some point the strata notices that it isn't enough to cover maintenance of the building, and then the fees get jacked up. Worse still, there's no contingency fund or very little contribution to it, and when unexpected bills to the property happen, it'll mean everyone gets to chip in for a special levy.
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happens to the majority of the new buildings. when buying buildings, look at the strata minutes and contingency reserve funds.
They should have lots of money in the CRF unless they just use a bit to do some work on the building.
Also look at the depreciation report. I notice that most of the "better" buildings have a depreciation report, and most of the shietty buildings that have leaks and stuff, the owners vote not to have the report.
honestly, I've lived in some buildings where owners are just full retard. they vote against raising strata fees and or any reports. the buildings had major leaks and problems. it seems like owners just want to defer everything and it's like the new buyers will have to fix it. However, most new buyers are too stupid to do their due diligence and then get stuck paying levies 2 years down the road.