Self Managed Buildings

Self Managed Buildings can cause many headaches, which we discuss below. There are many property owners that are unaware of their responsibilities or their rights when their property is a body corporate-managed building or an owners corporation building. Lack of concern from the lot owners is a leading factor that contributes to many issues, damage and more.

Due to this fact there are many mistakes made by both the owners corporation and body corporate. Most of which cost a lot of time and money. More importantly it can severely affect the overall quality and upkeep of the building.

Colleagues holding question mark signs in front of their faces

Here are some of the most common:

  1. Right’s and responsibilities and unpaid fee’s to the owners corporation or body corporate.

To be able to conduct regular maintenance on the building and facilities payments need to be up to date so that the owners corporation or body corporate can carry out important work on the property. Many buildings in Sydney are ageing and need constant upkeep and attention to keep the building as an attractive prospect for tenants. Many owners simply don’t know their responsibilities or rights, which leads to costly mistakes by the owners corporation or body corporate, it can also affect the overall building quality.

As a building gets older and becomes rundown due to improper maintenance the safety of the property becomes a concern adding further to the attractiveness of the property and less likely to find tenants and lowering it’s resale value.

  1. Contractor payments

Many owners don’t realise the importance of paying contractors on a timely fashion. Many have incentives for on time or early payments and when these are not paid on time it can cost a lot more money and also disgruntle a preferred contractor or service provider.

  1. Enforcement of by-laws and building laws

These standards and by-laws may incorporate what proprietors and occupants can have on their balconies/outdoor areas, what pets are permitted, how facilities are to be used, and that’s only the tip of the iceberg. Neglecting to adhere to these can bring about a messy building, damage and create less appeal towards renters and buyers. It can likewise end up hard to authorize different standards and by-laws, since part proprietors won’t welcome the irregularity.

  1. Neglecting to employ a professional strata service

Numerous proprietors partnerships and bodies corporate choose to self-oversee which can have a few advantages as long as everything is functioning admirably. In any case, if an issue emerges, self-guided proprietors enterprise and bodies corporate are off guard. It’s harder to determine issues, oversee authoritative prerequisites, look after progression, and convey a first-rate benefit for good-natured volunteers. What’s more, when a proprietors company or body corporate ends up overwhelmed by an intense identity, which frequently happens, things can see issues get out of control quickly.

These are just a few things that makes us a leader in Sydney Strata management.

To learn more contact SYDNEY STRATA SPECIALISTS today.

Trends to expect in 2018

The property market in Sydney in 2017 saw Sydney’s median house price rise by over $530,000. The following is a snapshot of the trends to expect in 2018:

 

  1. Financial markets predict the Reserve Bank will lift the official cash rate off the record low 1.5 percent level late in 2018.
  2. Cooling of property prices. The following shows the forecast for metropolitan areas: 

Source: ANZ Research

3. The Return of first home buyers

Source: ANZ Research

4. The stamp duty taxes on property transfers are seeing people upgrade or renovate their existing dwelling. The following is a graph showing the meteoric rise adjusted for inflation:

sydney-strata-management-stamp-duty-17-pm

READ THE FULL ARTICLE HERE

Parties and loud noise

When it comes to noise complaints, parties and strata management, it is against the law to affect the sleep of others. Please check your building or states laws, as they may differ:

Take a look here. 

best-strata-managerIf you or your tenant wish to lodge a complaint about the noise of a neighbour, calling the police should be your last resort.  This creates conflict and, at times, an uncomfortable living environment moving forward. We advise that you do your research regarding your specific situation, especially on the laws and policy, before escalating further. If you have a relationship with the neighbour in question, try and resolve in a reasonable and friendly manner.

Alternatively, the owner’s corporation can be used to issue your neighbour with a compliance notice if all else fails.

Please keep in mind that if you are planning an event or party of your own, you should advise your neighbours prior to the event. Not only does this show respect to those in close proximity to you, they will appreciate the thought and gesture.

2017 review & Sydney Strata Management

2017 review and the state of Sydney Strata Management.

Sydney Strata Management

In 2017 Sydney and NSW has seen growth in housing and unit prices and demand. Sydney remains one of the worlds most expensive places in regards to property prices. Sydney Strata Management is changing along with the market trends and changes. Here is some interesting information on the market and how it will affect your investments and strata management.

The following is an overview:

  • House and unit prices in close proximity to Sydney CBD now exceed $1m. The median house price has passed $1.3m.
  • Buyers and owners will find it difficult to find a house under 1m with-in 25km from the CBD. Discounts on Stamp Duty for first home buyers (Properties up to 880k) are affecting growth as they normally do in this area.
  • Newcastle, Central Coast and Wollongong have risen and becoming growth corridors in NSW.
  • The recent and improved light rail construction in Sydney has seen many properties in close vicinity to the new network flooded with investors and interest.
  • Trends towards property purchases in the inner city of Sydney remain the top draw for buyers. See our post about the Top 10 most desirable suburbs here.
  • The affordability of properties and availability of high-quality amenities are also pushing the apartment market forward in the Northern Beaches and eastern regions.
  • Housing shortages are contributing and keeping demand high in inner Sydney as the population grows.
  • Low-rise suburban apartments near activity centres remain a profitable option for investors.

If you would like to talk to one of our experts about how the above effects you and how Sydney Strata Specialists can help manage your property, call us today for an obligation free review of your current Strata plan. Contact us via the website or the following if you want to ensure your property is in the most capable hands:

CONTACT US

PO Box 7421
BONDI BEACH NSW 2026

info@sydneystrataspecialists.com.au
02 8005 3850

Repair v Redevelop? What you need to know

At Sydney Strata Specialist we are asked about the new changes in legislation regarding the 75% rule in selling / redeveloping the strata scheme.

The strata scheme may be facing repairs either immediately or in the near future –  these could mean that current owners raising tens of thousands of dollars each or even more.  There are vast amounts of buildings in the eastern suburbs that have concrete cancer or fire upgrades that have cost each owner $60,000 each.

The above is an example of Concrete Cancer

Meeting these levies can place an enormous financial burden on owners who are on fixed incomes.  In a lot of cases some owners voted NO or blocked the vote to the repairs as they simply could not afford to have the repairs undertaken.

The Government has recognised that a number of owners have blocked the sale/redevelopment and hence changed the laws to meet the ever-changing world of strata living.

Regardless if the owner’s corporation is looking to ether spending money on repairs or taking advantage of the growth. The majority of the owner’s corporation can now take advantage of the new laws.

Selling off the strata plan could be the way to go.  This use to be very difficult as it requires ALL (100%) owners to agree and sign off on the proposal.   Now the law is changing.

Now it is what is the most financial benefit that suits the majority –  Now that the consent of only a 75% majority of strata unit owners in a block will be required to consent to its demolition. This is in stark contrast to the current laws, which require agreement by 100% of strata unit owners for a block to be sold to a developer for demolition.

With many strata blocks within New South Wales becoming quite dated, ongoing maintenance and renovation is, without doubt, an extremely costly process, with the preferred option being to simply demolish the building.

Some of Sydney’s trendiest eastern suburbs are host to some of its oldest, and least sustainable, buildings.   A large number of buildings constructed in the 1970 had a life expectancy of 40 years.   We have now come to the end of the term.   Buildings that are on the coast are more susceptible to concrete cancer and if your building has not already had repairs due to this then it is only a matter of time.

sydney-strata-manager-old-apartments

Apartment block for sale in Cronulla

Allowing for redevelopment rather than expensive maintenance, offering potential increases in tenancy numbers and far more energy efficient buildings. Some local councils have already increased the height restrictions.

Some developers are offering apartment owners options such as ‘first option to buy deals’ and assistance with temporary or permanent relocation.

Talk to us today and see why we are the best strata managers in Sydney.

 

Sydney and Brisbane median unit prices

In this article, we will look at the median unit price trends in the Brisbane and Sydney markets.

Here is a graph of the median unit prices in Sydney and is based on approx 500 sales per year:

annual-med-unit

Now let’s compare Sydney to Brisbane:

annual-med-unit-bne

The sunshine state capital Brisbane is set to boom and has seen significant investment over the past 5 years in both the public and private sectors. The recent new infrastructure, multi-unit residential dwellings and planned entertainment precincts in the CBD all are factored in. Many claim that Brisbane will be the strongest market in Australia for the next five or six years.

 

 

Sydney comes in second globally

Sydney Median Property Prices

In a recent report, Sydney had placed second globally for the least affordable city and property prices.

The recent global report comprehensively ranked middle-income housing affordability using a “median multiple” score, which is calculated by dividing the average house price by the average household income.

Any city that has a score of 5.1 and over is considered “severely unaffordable”.

Sydney is second to HongKong globally and below is a quick breakdown of the ranked global top 10:

0124-least-affordable-cities

 

Here are the median property and rental prices for Sydney in 2017:

HOUSE AND UNIT PURCHASE PRICE

HOUSE/UNITS MEDIAN PURCHASE PRICE
Average $880,000
1 Bedroom $727,500
2 Bedroom $1,243,000
3 Bedroom $1,915,000

HOUSE AND UNIT WEEKLY RENT

HOUSE/UNITS MEDIAN WEEKLY RENT
Average $750
1 Bedroom $640
2 Bedroom $900
3 Bedroom $1,600

Fact you may not know about Australian Real Estate

Here are six facts you may not know about Sydney and Australia’s property market.

6-facts