There are many reports of tenants who have pets in their units or townhouses without permission. The larger the Body Corporate Community, the harder it is to police. I have even heard of tenants moving their pets out of the building when it is time for their inspection by the landlord or manager.
Although many Body Corporate Communities have strict by laws about pets, the reality is that the laws are hard to enforce. Committees find the complicated process of going through the commissioner, or whichever other authority is current at the time, daunting and time wasting and often times they end up ignoring breaches unless they are forced to act.
Confusing and coflicting recent judgements about pets also make it difficult for committees to act and many end up adopting a laissez faire attitude to pets. As long as they dont cause a nuisance then they turn a blind eye.
Once again, this all comes down to the fact that Committees are made up of volunteers. There are limits to how much time they should expend on issues like pet approvals, etc. This is ultimately a weakness of a Body Corporate system that is in a mess.
Wednesday, October 19, 2011
Investment Units on the Gold Coast in Oversupply
The recent annual report of the Residential Tenancies Authority indicates that the vacancy rate on the Gold Coast is 5.5 per cent - much higher than other states. However, even more significant is the fact that many investors have been forced to reduce the rents drastically which results in many finding it hard to cover their repayments.
The holiday rental situation is dire with investors who are forced to holiday let their units through Caretakers having to accept reduce rents as competition increases.
Unfortunately, there is no sign of any change in the situation. In fact many experts predict that things will get even worse. Many investors would live to offload their properties but cannot afford to take a huge loss.
There is no doubt that many people regret make an investment on the Gold Coast.
The holiday rental situation is dire with investors who are forced to holiday let their units through Caretakers having to accept reduce rents as competition increases.
Unfortunately, there is no sign of any change in the situation. In fact many experts predict that things will get even worse. Many investors would live to offload their properties but cannot afford to take a huge loss.
There is no doubt that many people regret make an investment on the Gold Coast.
The Costs of Apartment Living
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.
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.
Saturday, June 26, 2010
Levy Equalisation Fiasco continues
Minister Peter Lawlor announced some months ago that he would be changing the legislation so that "millionaire penthouse owners" would no longer be able to exploit a loophole to have their Body Corporate Levies slashed at the expense of smaller unit owners.
Whilst we continue to await for the changes to the legislation to be put forward, QCAT continue to rule on applications to equalise levies. The latest ruling for Palm Springs Residences determined in favour of the applicant to reduce the levies in penthouses on higher floors and increase the levies for those on lower floors.
One has to wonder whether Peter Lawlor was premature in making his announcement. Although he continues to assert that the legislation will be changed there is no guarantee that this will actually happen and his announcement may have had the affect of falsely raising the hopes of residents who face significant rises in their levies.
The fact is that if he doesnt do something soon it may be too late and he could be sitting in opposition.
______________________________________________________________________________
The opinions expressed in this blog are personal and not intended in to be advice in any way. I have spent many years participating on a number of different Body Corporate Committees. I am a dealer in Vintage Movie Memorabilia specialising in original movie posters and movie art. http://www.moviemem.com/I also present a radio programme on Jazz Radio 94.1fm Monday - Friday afternoons on the Gold Coast.
Whilst we continue to await for the changes to the legislation to be put forward, QCAT continue to rule on applications to equalise levies. The latest ruling for Palm Springs Residences determined in favour of the applicant to reduce the levies in penthouses on higher floors and increase the levies for those on lower floors.
One has to wonder whether Peter Lawlor was premature in making his announcement. Although he continues to assert that the legislation will be changed there is no guarantee that this will actually happen and his announcement may have had the affect of falsely raising the hopes of residents who face significant rises in their levies.
The fact is that if he doesnt do something soon it may be too late and he could be sitting in opposition.
______________________________________________________________________________
The opinions expressed in this blog are personal and not intended in to be advice in any way. I have spent many years participating on a number of different Body Corporate Committees. I am a dealer in Vintage Movie Memorabilia specialising in original movie posters and movie art. http://www.moviemem.com/I also present a radio programme on Jazz Radio 94.1fm Monday - Friday afternoons on the Gold Coast.
QCAT highly critical of Body Corporate Manager SSKB
QCAT recently ruled on an application to equalise the levies at Palm Springs Residences. The determination was given in favour of the applicant. Part of the determination was highly critical of the SSKB representative/consultant who acted on behalf of the BC.
"It is difficult to ascertain how he can assert, in any meaningful way, that he is not aware of any possible or perceived conflict of interest".
"It is of concern that Mr Walsh's final conclusion in his report of 22 September 2009 (exhibit 3) is identical to the terms of the defence filed by the Respondent".
"The adoption of the practice of body corporate managers purporting to act both as "experts" and "representatives" in the same case is not one which should be encouraged."
"These sections of his report are common to all such reports emanating from SSKB".
Hardly a glowing endorsement for SSKB - Stewart Silver King and Burns. Hopefully they will take the free advice from QCAT and reconsider their future involvement in these matters.
"It is difficult to ascertain how he can assert, in any meaningful way, that he is not aware of any possible or perceived conflict of interest".
"It is of concern that Mr Walsh's final conclusion in his report of 22 September 2009 (exhibit 3) is identical to the terms of the defence filed by the Respondent".
"The adoption of the practice of body corporate managers purporting to act both as "experts" and "representatives" in the same case is not one which should be encouraged."
"These sections of his report are common to all such reports emanating from SSKB".
Hardly a glowing endorsement for SSKB - Stewart Silver King and Burns. Hopefully they will take the free advice from QCAT and reconsider their future involvement in these matters.
Friday, April 30, 2010
Body Corporate Levy Equalisation Farce
On February 19th Peter Lawlor announced changes in the legislation so that "millionaire penthouse owners" would no longer be able to exploit a loophole to have their Body Corporate Levies slashed at the expense of smaller unit owners.
In recent years there have been a number of applications for equalisation of levies in Bodies Corporate based on the premise that the levies go towards the maintenance of the common property. As every owner has an equal share of common property the theory was that every owner should pay the same amount irrespective of the value of the unit.
The original calculation of levies set by the Developer is often based on the size of the unit and the floor level ie the units on higher floors usually pay higher levies.
I interviewed Peter Lawlor on my radio programme on Jazz Radio 94.1fm shortly after he made the announcement. He argues that owners should be able to rely on the levies that were set by the Developer and an owner of a penthouse should pay more than an owner of small ground floor apartments.
There are obviously good arguments on both sides but there are currently applications to equalise the levies before QCAT formerly CCT that have been left in the "too hard basket" for more than a year.
Since Peter Lawlor's announcement, QCAT has not communicated the progress of at least one application, presumably waiting for the legislation to go through. This is a farsical situation. One applicant has argued that a court can not and should not hold off making a legal decision because the legislation "might" change. He argues that the current law applies and that a ruling should be made on that basis.
Of course, others argue that it would be ridiculous for QCAT to rule on the current law only to have their ruling overturned months later when the legislation changes.
Either way, QCAT should communicate the current status to all owners who are embroiled in these expensive and ongoing applications.
_____________________________________
The opinions expressed in this blog are personal and not intended in to be advice in any way. I have spent many years participating on a number of different Body Corporate Committees. I am a dealer in Vintage Movie Memorabilia specialising in original movie posters and movie art. http://www.moviemem.com/I also present a radio programme on Jazz Radio 94.1fm Monday - Friday afternoons on the Gold Coast.
In recent years there have been a number of applications for equalisation of levies in Bodies Corporate based on the premise that the levies go towards the maintenance of the common property. As every owner has an equal share of common property the theory was that every owner should pay the same amount irrespective of the value of the unit.
The original calculation of levies set by the Developer is often based on the size of the unit and the floor level ie the units on higher floors usually pay higher levies.
I interviewed Peter Lawlor on my radio programme on Jazz Radio 94.1fm shortly after he made the announcement. He argues that owners should be able to rely on the levies that were set by the Developer and an owner of a penthouse should pay more than an owner of small ground floor apartments.
There are obviously good arguments on both sides but there are currently applications to equalise the levies before QCAT formerly CCT that have been left in the "too hard basket" for more than a year.
Since Peter Lawlor's announcement, QCAT has not communicated the progress of at least one application, presumably waiting for the legislation to go through. This is a farsical situation. One applicant has argued that a court can not and should not hold off making a legal decision because the legislation "might" change. He argues that the current law applies and that a ruling should be made on that basis.
Of course, others argue that it would be ridiculous for QCAT to rule on the current law only to have their ruling overturned months later when the legislation changes.
Either way, QCAT should communicate the current status to all owners who are embroiled in these expensive and ongoing applications.
_____________________________________
The opinions expressed in this blog are personal and not intended in to be advice in any way. I have spent many years participating on a number of different Body Corporate Committees. I am a dealer in Vintage Movie Memorabilia specialising in original movie posters and movie art. http://www.moviemem.com/I also present a radio programme on Jazz Radio 94.1fm Monday - Friday afternoons on the Gold Coast.
High Rise Horror
There have been a number of reports about owners in High Rise apartments in Surfers Paradise complaining about schoolies, rugby and football groups and Indie holiday makers ruining their lifestyle as permanent residents.
Claims of unruly behaviour that is not policed are common. By Laws are routinely ignored by short term holiday makers and the Body Corporate is often powerless to deal these issues as the tenants have often left the building before any action can be taken.
Last night, Channel Nine's A Current Affair featured a story on Concord Apartments in Surfers Paradise. This only supports the claims that permanent residents and short term holiday makers do not mix.
http://video.au.msn.com/watch/video/high-rise-squalor/xrxm9u2
and
http://au.news.yahoo.com/a/-/australian-news/7040189/legal-stoush-brews-over-schoolies-ban-bid/xxx
_____________________________________
The opinions expressed in this blog are personal and not intended in to be advice in any way. I have spent many years participating on a number of different Body Corporate Committees. I am a dealer in Vintage Movie Memorabilia specialising in original movie posters and movie art. http://www.moviemem.com/I also present a radio programme on Jazz Radio 94.1fm Monday - Friday afternoons on the Gold Coast.
Claims of unruly behaviour that is not policed are common. By Laws are routinely ignored by short term holiday makers and the Body Corporate is often powerless to deal these issues as the tenants have often left the building before any action can be taken.
Last night, Channel Nine's A Current Affair featured a story on Concord Apartments in Surfers Paradise. This only supports the claims that permanent residents and short term holiday makers do not mix.
http://video.au.msn.com/watch/video/high-rise-squalor/xrxm9u2
and
http://au.news.yahoo.com/a/-/australian-news/7040189/legal-stoush-brews-over-schoolies-ban-bid/xxx
_____________________________________
The opinions expressed in this blog are personal and not intended in to be advice in any way. I have spent many years participating on a number of different Body Corporate Committees. I am a dealer in Vintage Movie Memorabilia specialising in original movie posters and movie art. http://www.moviemem.com/I also present a radio programme on Jazz Radio 94.1fm Monday - Friday afternoons on the Gold Coast.
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