Common property in need of repair, improvements or solar panels?
When a body corporate or owners corporation need funds for renovations /rectification,improvement works or solar panels, the money is essentially found using three options:
- raise a special levy
- use money from the sinking fund
- use strata finance to complete the works quickly
Advantages of strata finance
- potential savings for lot owners by allowing works to be carried out quickly with upfront funding, rather than stretched out over a long period of time
- reduce the immediate finance burden on the strata to fund upfront large scale capital works
- multiple repairs or refurbishment works can be bundled into one project which can save time and money, reducing disruption to owners and tenants
- loan repayments are generally incorporated into strata levies
- there is no mortgage or personal guarantees required by individual lot owners
- there are no early repayment fees. This will depend on the type of loan structure.
Provide the following information:
- how much is the corporation looking to borrow?
- how long is the loan for?
- what will the funds be used for?
- how many lots in the strata community the funding is for?
- strata corporation number?
A proposal will be created which can be used to place a motion forward at the next AGM or EGM for acceptance to gain funding for the works. All necessary credit checks will need to be done to satisfy this step.
The funds may be used as a progressive draw down as and when the owner’s corporation or body corporate need it, or taken as a single draw down. Either way there is still only one repayment required each month. Interest is only paid on the actual money drawn down.