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Same strata/water/council costs building wide

Discussion in 'The Buying & Selling Process' started by lost nomad, 13th Jun, 2016.

  1. lost nomad

    lost nomad Well-Known Member

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    Hi Folks

    I've never owned a strata titled property before so I'm looking for some advice please.

    I'm looking at a property in a small older apartment block in NSW. The strata/water/council fees per quarter are the same for a 1/1/1(carspace) vs 2/1/1(LUG)

    I questioned the agent & they said they double checked and its correct.

    This seems odd to me?

    I am yet to look at the strata report, although I note on the contract, each lot has equal entitlement...

    Another question-

    The front page of the contract has the question ticked for "land tax adjustable"

    What does this mean?

    Many thanks
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    You pay expenses based on your unit entitlement - if buying a 2 bedder you're getting off lightly - the developer may have kept these for themselves initially or for any other reason.

    If the vendor is an investor and paying land tax, they are seeking to put the remainder of the tax paid back onto the purchaser. You need to determine how much land tax is payable and be able to negotiate out of this - discuss with your solicitor before signing a contract.
     
  3. thatbum

    thatbum Well-Known Member

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    Well the same unit entitlement pretty much explains the apartments having the same fees.

    I've seen the same on older apartment blocks in WA as well. Means a good deal if you're buying one of the 2x1s.
     
  4. lost nomad

    lost nomad Well-Known Member

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    Ok makes sense thanks.

    So given lots are equal, the land size is divided by number of lots? So the one bedder could be liable for the same land tax as the two bedder?
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    Land tax on units is usually very low due to the small land component.