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Body Corp Won't Send me Financial Report?

Discussion in 'General Property Chat' started by hammer, 22nd Sep, 2016.

  1. hammer

    hammer Well-Known Member

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    Looking to buy a unit, but the body corporate seems high. It is self managed and after perusing the minutes of the last AGM the body corporate costs seem twice as high as the outgoings that I can see tabled in the minutes. Something doesn't feel right so I have requested the annual financial report so I can see where the money is going.

    Got a reply back from the agent saying that they won't send the financials directly and it needs to go through our conveyancer?

    I've never heard of this before. Normally the financials are on the back page of the minutes, or sent quickly when requested.

    Alarm bells are starting to ring...but maybe it's unwarranted?
    Anyone had similar experiences?
     
  2. Tony Fleming

    Tony Fleming Well-Known Member Business Member

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    I have a few self managed strata properties. I wouldn't be concerned as long as you get the financials eventually to look at. You save a ton of fees with it been self managed(none of the $5 per photocopy nonsense some strata companies apply) but I found with my complex there are more home owners to investors. Means they always want fancier upgrades than the typical strata company would allow. So I'd be looking to see how many are rented in the complex compared to privately owned. Good luck with it all!!
     
  3. hammer

    hammer Well-Known Member

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    Thanks @Tony Fleming !
    Self-managed is normally something I look for, but in this case, the strata costs are about the same as if it were managed professionally (4k pa- normal for cyclonic Darwin). There is also only 6k in the sinking fund....
    It's only 4 units, 2 are OO, 2 are rented. There's no pool, no lift - only a driveway and a teensy bit of garden. Definitely no fancy upgrades that I could see.
    In the minutes Insurance+ water +gardening came to about 7k-8k PA.
     
  4. Tony Fleming

    Tony Fleming Well-Known Member Business Member

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    That is quite high. I would be going through it with a fine-toothed comb.
     
  5. BCR

    BCR Well-Known Member

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    They should have no issues disclosing financials, sinking fund is low, $$ would be eaten up immediately if there was a minor repair required or maintenance issues. I learnt my lesson the hard way by not going through the financials in enough detail

    Have a look a the 10 year maintenance plan and planned expenses this should help you assess the sinking fund $$
     
  6. hammer

    hammer Well-Known Member

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    I think you're confirming how I'm feeling. I think I'll be letting this one pass.
     
  7. The Y-man

    The Y-man Moderator Staff Member

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    If the property is in Victoria, the report will be included in the section 32.

    The Y-man
     
  8. hammer

    hammer Well-Known Member

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    NT. No section 32 up here.
     
  9. dabbler

    dabbler Well-Known Member

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    Someones on the take....
     
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