What are Strata Contributions?
Strata contributions are one of the most important, yet difficult to understand aspects of property ownership. Strata contributions cover a wide range of costs and responsibilities that must be paid by the owners in order for buildings or complexes to function properly.
A strata levy is also known as an owners corporation or body corporate fee. Owners corporation and body corporate mean the same thing. Strata levies are payable by all owners on a periodic basis and a failure to pay can result in proceedings to recover the funds.
In many cases, the monthly contribution is only a small fraction of what homeowners would otherwise have had to spend on their own if they were renting or owning a freehold property. That means that by living in an apartment building, unit, villa or residential townhouse project – people can enjoy the benefits without needing a huge personal investment up front.
The main functions of strata fees include repairs and maintenance costs for common areas; insurance covering both public liability and private contents inside units; provision of water supply services like garbage disposal and recycling at properties with communal rubbish collection points; electricity distribution where residences don’t use individual accounts.
Strata fees are a few of many reasons to live in an apartment project, unit or townhouse. That’s why they’re so important for people who want the benefits without having to spend their whole life savings on one investment at first.
How much do strata contributions cost?
The amount of the strata levy depends on the units that have been allocated to the property that you have acquired.
The strata levy is usually paid quarterly, six-monthly or yearly.Each owner pays the same proportion of fees as their allocated unit size compared to all other owners in the property. For example, if you own one quarter of your housing project where there are four units total, then you will not pay any more than 25% of the average cost so long as everyone else remains on an equal footing.
We hope this helps you understand better the requirements around strata contributions.
All care has been taken to ensure the information provided is accurate and you should consult our office for any specific questions regarding your personal circumstances.
There’s no denying that managing your strata can be time consuming – but luckily we are the professionals who specialise in this! McKie Property Management can handle all of these requirements for you.