Body Corporate General Manager discusses the Body Corporate market.
With spring just around the corner, the Body Corporate team have noticed that the winter months have not seen any slowdown in the residential property market. We have seen an actual increase in sales of Unit Titled properties when compared to the end of last year when the market commenced its remarkable upward swing.
We have also seen a record number of owners face extreme financial stress that has resulted in Bodies Corporate having to take the drastic action of commencing legal proceedings against owners who have regrettably fallen well behind in paying their annual and/or special levies. Largely these owners are investors.
With continuing sales momentum looking likely to continue, it will be interesting to see how the following will impact the apartment market:
- Changes already implemented by the Reserve Bank;
- Changes that the Reserve Bank has flagged for some time in the future;
- The prospect of a rising interest rate environment.
We know that well maintained and professionally managed town houses and apartments are selling quickly and at premium prices. The developer market is also very active and the pipeline currently under way will see plenty of stock in the next 12 – 24 months becoming available for purchase and maybe even re-sale for those that purchased off the plans.
When purchasing off the plans please be mindful that the projected budget and annual levies are only a “best estimate” as the build is far from actual completion so some caution should be applied. Like the banks when they are considering lending to First Home Buyers for example, they apply a stress test scenario just in case of higher servicing costs in the future. We always suggest to clients considering purchasing off the plans to perhaps allow for another 20% to be factored into the proposed annual levy figure amount just in case.
So bring on Spring and if you want to discuss body corporate, residents association, or cross lease management then please don’t hesitate to get in touch with us. We’re here to help.
General Manager – Body Corporate
Auckland Property Management
Feel free to contact our Body Corporate Management team via the contact form below.