This is a simplified guide all about your strata levies, why you pay them, what they get spent on and how to make sure they are not being wasted.
What are Strata Levies
Strata levies are the invoices sent out by your owners corporation so that the building can pay it’s bills each week.
What do Strata levies get spent on
Ever building has a few basics that they need to spend money on
- insurance – minimum 10% of your budget
- Utilities, electricity, water, gas
- Repair – to keep your building running & safe
- Admin fees
- Capital long-term expenses
Why do I have to pay
Paying strata levies is part of owning an apartment, you cannot get away from it. The difference from house to an apartment is you pay your running costs a little each quarter in an apartment but in a house, you pay them when things break.
How are they calculated
Strata levies are calculated from the registered set of “unit entitlements” these are relative to your building. This is the only way that strata levies are charged
The most important part of strata levies
They are there to be spent, if your building is not spending money and looking to improve something each year, you might have some problems coming.
