$650 monthly strata management fees!
 

Hi all,

So what's the deal? I've noticed a few properties with strata between $450-$650.

Has this anything to do with people unable to get the huge mortgage required, so there is some way for real estate to be valued lower and the strata is inflated?

Or when getting a mortgage do the banks take strata costs into account when calculating mortgage borrowing limit? - which would make the above pointless..

Just seems like a con to me.

I know 'BC' = 'bring cash' but somebody/people are obviously taking the p***

Re: $650 monthly strata management fees!
 

I can see if a property needs some structural upkeep, a new roof, that sort of thing, how the management fees could get up there.

If I averaged out what the maintenance and updates on my house have been its plausible.

Presumably its the same for everyone in the condo, so if its more than you want to pay, look elsewhere?

Re: $650 monthly strata management fees!
 

If you live in a strata - you pay strata fees. For $600pcm I would expect there to be some good services - gym, pool, well maintained communal areas, concierge etc. Whether it's a "con" or not depends on how much you value what services the strata is providing.

You should use it when working out your borrowing limit.

Re: $650 monthly strata management fees!
 

thanks for the comments.

It just blew my mind, why would anyone pay that. The pool and gym looked nothing special, I'd rather pay nothing/smaller amount and join a gym elsewhere.

Sounds like money for old rope these strata cowboys.

Re: $650 monthly strata management fees!
 

The bank will take half the strata fees into account when calculating your debt service ratio.

It is difficukt to say whether $650 per month is taking the p*ss or not. As Alan says, some buildings have a lot of amenities and these have to be paid for. If you use a gym, for example, having one in your building will save on the dreaded gym membership fees.

The strata corporation should maintain sufficient reserves for normal repairs and maintenance. Fees for a new building tend to be higher as the strata builds up its reserve fund. These tend to moderate over time.

Re: $650 monthly strata management fees!
 

The strata corporation is owned by all the owners in the building and is non-profit. It is just a device for dealing with common costs. Many people like the idea that maintenance and building issues are looked after. It makes for hassle free living.

The minutes of meetings of the strata council are public documents and you should review them thoroughly before you finalize an offer to purchase.

Re: $650 monthly strata management fees!
 

If you don't want to pay it then you'll have to look elsewhere. You won't avoid them if you buy in a strata. Remember that if the fees are too low then you have to worry about things like repairs not being done quickly, or the outside looking a bit shit. Things that will affect the value of your property.

Re: $650 monthly strata management fees!
 

If it's a management company then they will take their cut. Although that avoids having to deal with crap at strata council meetings - something I'd definitely pay extra for.

Re: $650 monthly strata management fees!
 

$450-$650 doesn't seem crazy to me. Unless it's a complex with NO amenities at all, low strata fees would be a red flag to me. A lot of new builds have v. low strata fees to start but they end up going up a lot in the first few years as the real costs become apparent.

As the others said the strata needs to put aside money for future repairs/replacement, or they should be, as well as paying management fees (it's worth it imo - or you're dealing as a strata with all the violators yourself, which is a pain) upkeep, landscaping, perhaps concierge, pool, etc.

Cheaping out on fees means a crap looking building and lower re-sale, as Alan pointed out.

Suck it up. That's the way it is here.

Re: $650 monthly strata management fees!
 

some very good comments by all - didn't think of a few of them!

I'll suck it up / man up - ;-)

Re: $650 monthly strata management fees!
 

it was a shock to me at first when i moved here...

Re: $650 monthly strata management fees!
 

:)

BTW, a cowboy is someone who rides horses on cattle ranches in the interior. If you use that to describe dodgy tradesmen you will confuse the hell out of everyone.

Re: $650 monthly strata management fees!
 

You obviously have no idea of the maintenance costs of a swimming pool, replacing a roof or elevators or underground garages. If funds are not collected for these eventualities the building will quickly fall into disrepair and possibly engineers will condemn the structure.
Your posts suggest corruption and fraud by those owners controlling these expenditures and that, for the most part, does not exist.

Re: $650 monthly strata management fees!
 

I was having an argument with a nugget i work with who was going on about how worth it was to pay 300 bucks a month. Dont have to get plumbers, electricians etc... They've had a plumber once apparently in 3 years but they cut the grass every week. Oh i see, i said, well worth it.

There was an audible woosh as the sarcasm flew over his head.

Re: $650 monthly strata management fees!
 

What's that per square foot?