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I am in a medium sized strata building in NSW which, surprise/surprise, had a large amount of building defects requiring repair. With no chance of getting any money from the developers, the OC took out a huge loan at an interest rate of around 8.5%.
The building defects were completed around early last year, and the contractors paid.
As it is clear now how much is outstanding, and no further calls will be made on this loan, I would like to look at paying out my portion of the loan. I see this action as not only helping me, as I would not have to pay the interest, but would also assist the other owners as the loan would be repaid quicker. In addition, there may be other owners in a similar situation to myself who would rather not pay the very high interest rate on the outstanding amount.
I understand that the loan hasn’t been taken out in the name of individual owners, but I can’t see that that would mean I couldn’t repay my portion in advance. After all, I would think I could pay my levies in advance if I so desired and the loan is apportioned similarly to that on unit entitlements.
Your advice would be appreciated.
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