There have been many recent reports indicating that the market value of apartments and townhouses in Body Corporate Communities on the Gold Coast has dropped significantly in recent times. The global financial situation has certainly contributed to this. However, another factor is the continuing escalation in fees and charges that are forcing many owners out of their homes.
The fees and charges that are crippling for owners and investors include:
1. Gold Coast City Council Rates - including the ludicrous "view tax" for units above the 4th floor.
2. Allconnex charges - an example of an extraordinarily ill concieved policy that led to increased charges to owners.
3. Body Corporate Levies - Although Committees are responsibile for ensuring that their money is spent in a responsible manner there are many examples where funds are mismanaged and Body Corporate fees are much higher than they should be.
There is no doubt that high fees and charges will affect the market value in Units and Townhouses. Whilst Body Corporate Committees have little control over Rates and Water charges, they should be doing everything possible to reduce Body Corporate Levies.