Money for nothing

One of the most common complaints in strata living is about levies and specifically, why people should have to pay for things they don’t use. But there’s no such as a free lunch in strata … even if you don’t cook with gas.

QUESTION: A gas leak has been discovered in the pipe servicing my block. I disconnected gas to my unit a number of years ago. Do I still have to contribute towards the cost of repair or replacement of the pipe? – Degas, Sydney.

ANSWERS: As an owner you still have to contribute to the maintenance of common property, including the gas pipes, even though you don’t use all of it. For instance, if there was a pool you’d still pay your share of heating and maintenance, even if you couldn’t swim. Also, the next owner of your unit may well want to use gas, so the fact that it’s available adds to the value of your property.

This system where you pay for things you don’t use may seem unfair but when you buy into a strata development you buy a package and the non-swimmer who doesn’t use the pool may be balanced by the car-free owner who pays a share of the garage gate costs.  It’s not a perfect system but it works … kind of.

Occasionally you’ll get owners with the highest levies (and therefore with more voting power) trying to cut services for the whole building so they can save money. But that’s pretty short-sighted and inevitably leads to a reduction in property values – good services are more attractive than low levies, especially in high-end properties.

That said, you can see their point. Why should they pay four times as much for services when they couldn’t possibly use them four times as often?

In some states they have a two-part levies calculation – one part is for the upkeep of the building, based roughly on the value of your unit, and the other part covers your share of the services based on the likely number of residents of your unit.

But here in NSW, if there are services in your building that you don’t want to pay for, then the choice is brutally simple – go and live somewhere that doesn’t have them.

Leave a Reply