QLD Strata units on site manager

Hi team

we are very keen on a townhouse under accommodation body corporate type which we understand to be short term. There are onsite managers who have paid money for their unit, income and letting rights.

more and more owners are living in the units which were holiday let.

what is possible? Can the management rights be forced to sell or surrender the management rights if it becomes non financial? Does it just become more challenging with fewer and fewer units in the letting pool?

We went to the auction but got cold feet as the body corporate disclosure statement didn’t include the managers income. There are 40 units and we have now found out they get $250000 and 84000 income.

It’s so expensive for holiday unit holding costs as the body Corp is $200 a week so we didn’t proceed but I’m very sad. I still want one. If the body Corp was lower we would have bought. The numbers just don’t work. We would lose $25k a year with the current overheads and low vacancy rates.

does anyone have any info or advice for me?

 

@Terry_w is this something you know about?

 

What is in the management agreement as to termination &/or compensation?

 

19 years to go. 250k per annum

 

There's multiple questions here and a bit mixed-up. I'm trying my best to answer but feel free to provide more context and clarifications so that other people can advise.

Quite unusual for Townhouses to be in Accommodation Module, where is this?

So presume you’d like to buy it as an Investment?

As you would have noted, this OSM has paid for the Management Right and would have a legal right to operate as per the agreed terms. Yes it can be sold but being "forced to" needs checking with those terms.

Also, not sure what you meant by "non-financial": from whose's point of view? Yours or OSM?

"More challenging" from whose's point of view, yours or OSM?

For the OSM, most certainly, their income would have been reduced.

For you and all the other Lot Owners/Investors, it means there’d be more Owner Occupiers and less Tourists. Is this more desirable to you?

No offence but before the Auction, one should have gathered all the info required, talk to the Sellers/Agents…..

Anyhow, the BC Disclosure Statement has a prescribed format which does not include Managers’ Remuneration.

With Levy costing $200/week, one would expect all high-end amenities and Concierge, which would be costly to maintain. What is the worth of the Property, did it sell on Auction day? Interested to know how you get a loss of $25k a year… Some may like it being negatively-geared, hopefully with good Capital Gain later on.