You’re in the market for an Apartment – aka a Unit and the good news is you have a few to compare. They all look very similar so what else can you consider? Thoroughly review the Body Corporate and in particular their building maintenance plans.
In New Zealand the Units Title Act (UTA) became law in 2010. In it a clause on Body Corporate (BC) long term maintenance plans and the requirement to have one in place.
A long term maintenance plan is 10 years and it requires a fund however BC’s can opt out of having the fund by a special resolution.
Unit Property Owners pay the Body Corporate fees which include maintenance costs. Liquidity of funds for long term maintenance is usually a challenge for most BCs and as such long term maintenance plans are to be reviewed every three years. As the UTA is recent there will be lots of reviews of long term plans happening this year and next.
Therefore if you’re considering purchasing a Unit reviewing the long term maintenance plan for the Building that houses a Unit you’re in is recommended.
If you’re comparing a couple of Units that are very similar the point of difference may be the BC maintenance plan and how well it is funded.
To find out more please visit Long term maintenance funds and plans by Alexander Dorrington.