The misconceptions of Body Corporates

A lot of people are put off by body corporates and either think they are a profitable business or they have no idea of the purpose of a body corporate and the benefits of one. A body corporate is a system for overseeing the common property of the collective owners.

When you are looking at buying a property that has a body corporate. Don’t be put off by this. Do your research and find out what the annual fees or levies actually cover. Standard body corporates normally include building insurance, building management and building maintenance. For example, gardening, rubbish collection, cleaning of communal areas (foyers, entrances, recreational rooms). A body corporate might also raise a special levy for a particular project (re clad, upgrades, renovations of common areas).

Some people might still think body corporate fees are still ‘way to high’ for all of that. However, think about it. If you own a freehold property that sits on a 600sqm site for example, you are solely in charge of the maintenance of your home and the land it sits on. You need to mow your lawns, keep the gardens tidy, paint the exterior, have insurance in place and so on. All of the maintenance and administration required takes up personal time and money!

Keep all of this in mind when making your decisions, do your research and ask your trusted real estate agent for advice.