Changes to the Body Corporate and Community Management Act Can Make Unit Ownership More Affordable.
Generally changes to legislation are highly technical matters requiring expensive compliance with lawyers, making little difference to developers trying to put together projects which the market embraces. The changes enacted on 14 April in Queensland are different. They might in fact make it easier to sell some apartments.
Here is why:
- The amendments to the Body Corporate and Community Management Act provided for new ways to share the body corporate expenses between the apartments. This is done by giving alternative ways to calculate the contribution lot entitlements.
- Previously, there was a system for calculating contribution lot entitlements which meant that large apartments (like penthouses) received body corporate levies which were not significantly different from smaller apartments. Now it is possible to base levies on market values. Consequently, a $1.5m apartment may pay 3 times what a $500k apartment may pay.
- The market value method is only 1 of the ways now available to calculate entitlements. There are others. The only constraint is that the same method must be used throughout your scheme.
This change makes smaller apartments, calculated using the new principles, a much better investment proposition then they may have been before the legislative changes.
Call Priscilla, Claire or Peter for an appointment to review your body corporate budget and investigate how the new entitlements can be used in your new development.