Tuesday, April 3, 2012

Unit owners fight huge increases in body corporate charges

An article in the Courier Mail dated April 3rd refers to the fact that unit owners plan to fight supposedly "huge increases" in body corporate charges.


The article tells half the story. Following changes to the legislation to overturn the equalisation of levies some Bodies Corporate have reverted back to the original lot entitlements that were set by the Developers. This came about as a result of a huge number of complaints about penthouse owners who took action to greatly reduce the levies that they paid.

Campbell Newman says "Sorting out the mess left by Labor in the area of body corporate law is going to take some time, but I expect my minister to sort it out."

If he seeks to change the legislation again, he will have to deal with a huge backlash from unit owners who have already said that the levies should remain as set by the Developers.

This is a no win situation. The debate about levies has created conflict and massive costs to Body Corporate communities and is likely to continue for years to come.

The end result is that investors are turning away from buying units in Queensland. Anyone contemplating purchasing a unit would have to consider the continuing uncertainty about Body Corporate Lot Entitlements.