An article in the Courier Mail dated April 3rd refers to the fact that unit owners plan to fight supposedly "huge increases" in body corporate charges.
http://www.couriermail.com.au/life/homesproperty/unit-owners-fight-huge-increases-in-body-corporate-charges/story-e6frequ6-1226316889662
The article tells half the story. Following changes to the legislation to overturn the equalisation of levies some Bodies Corporate have reverted back to the original lot entitlements that were set by the Developers. This came about as a result of a huge number of complaints about penthouse owners who took action to greatly reduce the levies that they paid.
Campbell Newman says "Sorting out the mess left by Labor in the area of body corporate law is going to take some time, but I expect my minister to sort it out."
If he seeks to change the legislation again, he will have to deal with a huge backlash from unit owners who have already said that the levies should remain as set by the Developers.
This is a no win situation. The debate about levies has created conflict and massive costs to Body Corporate communities and is likely to continue for years to come.
The end result is that investors are turning away from buying units in Queensland. Anyone contemplating purchasing a unit would have to consider the continuing uncertainty about Body Corporate Lot Entitlements.
Tuesday, April 3, 2012
Sunday, January 15, 2012
New regulations - do you comply?
It has been reported that on 1st January 2012, new regulations came in to force requiring all pre 2004 Bodies Corporate buildings to comply with new Asbestos regulations or risk heavy fines and/or prison terms.
Apparently, the regulations require Bodies Corporate to have an Asbestos Inspection and report completed. If any Asbestos is found in the building, a register needs to be completed and the BC should ensure follow up reports are completed every twelve months.
The reason this is being done is presumably because Bodies Corporate Buildings are considered a work place and any health hazards would need to be disclosed to anyone working on the property.
Many will be asking why "pre 2004". Surely Asbestos was phased out long before then? Well, Amosite and Chrysotile (white asbestos) was used up until 2003 so that is why the new regulations have been introduced.
The interesting thing about this is that a previous regulation was in place for buildings built prior to 1990 but it seems to have been largely ignored. Many Bodies Corporate have no idea or knowledge of the legislation and inspections have not been made despite the fact that Asbestos has been present in many buildings.
You have to wonder whether disclosure statements picked this up and whether there may be the possibility of legal action down the track based on the fact that Bodies Corporate have failed to have the reports and inspections carried out.
Body Corporate Committees rely on their Body Corporate Managers to update them on their requirements. At the moment, some BC Managers are advising their clients that they should have the report done and inspection completed asap. Others are not. Those BC Communities without BC Managers are unlikely to be aware of the new regulations.
There is currently some debate about whether the regulations have actually come into force despite the published date 1st Jan 2012.
You should seek advice in relation to the new regulations from your Body Corporate Manager.
______________________________________________
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.
Apparently, the regulations require Bodies Corporate to have an Asbestos Inspection and report completed. If any Asbestos is found in the building, a register needs to be completed and the BC should ensure follow up reports are completed every twelve months.
The reason this is being done is presumably because Bodies Corporate Buildings are considered a work place and any health hazards would need to be disclosed to anyone working on the property.
Many will be asking why "pre 2004". Surely Asbestos was phased out long before then? Well, Amosite and Chrysotile (white asbestos) was used up until 2003 so that is why the new regulations have been introduced.
The interesting thing about this is that a previous regulation was in place for buildings built prior to 1990 but it seems to have been largely ignored. Many Bodies Corporate have no idea or knowledge of the legislation and inspections have not been made despite the fact that Asbestos has been present in many buildings.
You have to wonder whether disclosure statements picked this up and whether there may be the possibility of legal action down the track based on the fact that Bodies Corporate have failed to have the reports and inspections carried out.
Body Corporate Committees rely on their Body Corporate Managers to update them on their requirements. At the moment, some BC Managers are advising their clients that they should have the report done and inspection completed asap. Others are not. Those BC Communities without BC Managers are unlikely to be aware of the new regulations.
There is currently some debate about whether the regulations have actually come into force despite the published date 1st Jan 2012.
You should seek advice in relation to the new regulations from your Body Corporate Manager.
______________________________________________
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.
Sunday, October 23, 2011
The View Tax has to go
It is no wonder that Unit prices on the Gold Coast have taken a dive. Increased fees and charges have contributed to a significant devaluation of many investment properties. Add to that the fact that many investors have had to absorb a dramatic decrease in rental income as competition increases and rents drop.
The Gold Coast City Council came up with a new way to fleece unit owners in 2006 by increasing rates for owners above the 4th floor. This has been referred to as a VIEW TAX which just about sums up what the increases are all about.
There is no logical reason why the rates should be higher for someone who has a unit on the 4th Floor as opposed to the third floor. The increase in rates is indefensible and who can blame anyone for thinking that it was simply a callous and deceitful way to raise additional revenue.
It gets worse for owners on higher floors. The higher you go the more you pay. The end result is that Unit prices plummet. Prospective buyers take a look at the fees and charges, do a simple equation and work out that many Units on the Gold Coast are a poor investment with little possibility of a decent return on their investment.
We have Council elections in 2012 and whoever runs for Council should think very seriously about removing the draconian View Tax.
The Gold Coast City Council came up with a new way to fleece unit owners in 2006 by increasing rates for owners above the 4th floor. This has been referred to as a VIEW TAX which just about sums up what the increases are all about.
There is no logical reason why the rates should be higher for someone who has a unit on the 4th Floor as opposed to the third floor. The increase in rates is indefensible and who can blame anyone for thinking that it was simply a callous and deceitful way to raise additional revenue.
It gets worse for owners on higher floors. The higher you go the more you pay. The end result is that Unit prices plummet. Prospective buyers take a look at the fees and charges, do a simple equation and work out that many Units on the Gold Coast are a poor investment with little possibility of a decent return on their investment.
We have Council elections in 2012 and whoever runs for Council should think very seriously about removing the draconian View Tax.
Wednesday, October 19, 2011
Pets in Body Corporate Communities
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.
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.
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.
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