Here are some pros and cons:
BENEFITS
In most cases body corporates pool resources from homeowners to maintain common areas such as gardens, pools, and common buildings. This can spread out the financial burden and potentially save individual homeowners money on maintenance costs, they will also provide a platform for homeowners to participate in decision-making processes regarding the management and maintenance of common areas.
This fosters a sense of community and allows residents to have a say in the upkeep of their surroundings.
Many body corporates provide amenities and services such as security, landscaping, rubbish removal, and recreational facilities which can enhance the quality of life for residents and increase the value of the properties within the community.
Body corporates typically establish and enforce rules and regulations aimed at maintaining property values and ensuring the harmonious coexistence of residents which can help prevent disputes and maintain a desirable living environment.
It could be wise to become a committee member, which as an investor you are entitled to do, as decisions regarding the management of the property, such as renovations or repairs, are made collectively by the body corporate committee, ensuring that the interests of all homeowners are taken into account.
Being a committee member, even though you don't live there, enables you to keep your finger on the pulse, its your investment, you need to know what's going on. Unfortunately, some investors think the responsibility lies with the letting agent, not so, its your investment be responsible to yourself and your future.
DOWNSIDE
Whilst there is a downside to most types of investments, they are generally not good enough reasons to not consider moving forward. It's a matter of knowing what to expect and how to best deal with these issues. At Capitl we can show you precisely what to expect and to best deal with them.
So, back to downsides,
Nobody likes to pay but there will be fees you are required to pay, strata fees to the body corporate to cover maintenance costs and other expenses incurred in running the property. These fees can vary in amount and may increase over time, and they generally do, which potentially can become a financial burden for some people. So, again be on the ball, keep the finger on the pulse.
There is a loss of autonomy in this environment with residents having to adhere to the rules and regulations set forth by the body corporate, which may restrict certain activities or behaviors. This loss of autonomy can be a source of frustration for homeowners who prefer more independence.
Living in this communal environment, differences in opinion among homeowners or between homeowners and the body corporate committee/board can lead to conflicts and disputes, sometimes leading to a turnover of tenancy, which is not what you want. Resolving these issues can be time-consuming and may require legal intervention.
As mentioned earlier, in some cases, body corporates may be poorly managed, leading to inefficiencies, budget deficits, or neglect of maintenance responsibilities which can negatively impact property values and the overall quality of life for residents. So, keeping the finger on the pulse is vital for the professional investor.
Talk to Capitl and learn how to be a 'pro' when it comes to property investment.
While investors/homeowners have a voice in the decision-making process within the body corporate, they may not always have control over the final outcome of decisions. This lack of control can be frustrating for residents who feel their concerns are not adequately addressed, again 'finger on the pulse'.
Overall, the pros and cons of body corporates vary depending on individual preferences, the effectiveness of management, and the specific circumstances of the community but overall, with the right advice and full understanding of your potential investment you mitigate the risk and increase the value of the opportunity.
We have the knowledge and experience to help you navigate through the process, give us a call at Capitl, we can help.
