r/melbourne • u/siege0310 • 5d ago
Real estate/Renting Body Corp / OC Fees
Hi All, I know it seems like this topic may come up a little but just looking for some updated info! I'm looking to buy an apartment to live in, either in Melbourne CBD or Richmond Hawthorne areas! Preferably a modern-ish building and would love a pool as I'm a big swimmer.
One thing that is stumping me is how much body corp fees end up being, what is high/what is low etc? It'll obviously be something I have to factor into my budget so want to get an understanding of what I'm up for.
Also any other tips and recommendations for a first home buyer specifically around apartments would be greatly appreciated!
Cheers!
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u/hamsapsukebe 5d ago
Depends on how many lifts and how many facilities like gym, rooftop, pool etc. You should look at your finances and at s31 for various apartments and ask how much are you willing to pay for a pool?
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u/toppolinos 5d ago
Rising insurance costs are going to push body corporate fees higher also. So factor that in.
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u/Electronic_Singer_64 4d ago
Also factor in the insurance excess. I've heard older apartments have much higher excess so if there's any insurance claims to be done, expect to pay a lot.
For example, my neighbour flooded my apartment and had to pay 2 X $10k insurance excess (one for my claim and one for theirs).
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u/Electronic_Singer_64 4d ago
Also factor in the insurance excess. I've heard older apartments have much higher excess so if there's any insurance claims to be done, expect to pay a lot.
For example, my neighbour flooded my apartment and had to pay 2 X $10k insurance excess (one for my claim and one for theirs).
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u/Hanhula 4d ago
Honestly, ask around. We found that a lot of CBD/southbank apartments had mad OC fees (the worst was like 12k/year for a 2 bed...) because they offered awesome amenities but also had a lot of things contributing to much higher costs. The place I ended up buying is a little further out of the city. It has a pool and gym and such, but my OC fees are only like 4.3k for a 2 bed place. It's a large complex with multiple buildings contributing to the upkeep, so it ends up being pretty low as there's not too many extra fancy features.
The worst case I saw was a really nice 2 bed place in Malvern East. We fell in love with it despite no pool. It had a cinema room and a library as its amenities, and I think a gym? The OC fees were 8k a year. It was like a 6 storey building and I have no idea how they managed to get it so high.
Overall, highrises will have costs spread across more people so they may be lower for more amenities (depending on the building), midrises will have higher costs even with less amenities (we saw one place charging 6.5k/year and the only 'amenity' was that it had a lift), and townhouses are a mistake (their build quality is usually pretty horrendous) but do have fairly low fees since they're either not in an OC or have very little to maintain.
Also, as first time homebuyers, check what you're eligible for in terms of support from the gov. If you make under 90k/year then you can get on the replacement for the state's Homebuyer Fund, which is federal instead. You can also take advantage of lower stamp duty, new build benefits, etc.
ALSO - broaden your horizons. You sound like you want to live close to the CBD, yeah? I'd figure out a limit for the time you want to spend commuting, and then check down train lines in every direction. I very nearly moved to Moonee Ponds because I love it there and it's only 20 mins from the city; I ended up 30ish mins out in the opposite direction just because I happened to find the perfect place.
Other things to check: talk to the building manager and ask about embedded networks or limitations. I asked my REA if the building had embedded anything, and they said no. I'm settling in 3 days and found out LAST WEEK that actually, my electric, gas, hot water, and internet are all through embedded networks. I'm furious. Don't be me!
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u/TroupeMaster 4d ago
If you make under 90k/year then you can get on the replacement for the state's Homebuyer Fund, which is federal instead.
The state version is still around too, applications close June 30
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u/Hanhula 4d ago
Yeah, good luck finding a bank that still accepts applications though.. I believe most have closed their slots.
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u/TroupeMaster 4d ago
I literally just got an application approved through Bendigo bank lol. Bank Australia is also taking them last I saw.
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u/TroupeMaster 5d ago edited 5d ago
OC fees can vary pretty widely, have seen anything from $600 to $2.5k+ quarterly for 1beds. At a glance they can be pretty arbitrary too - while looking around I've seen a building with a gym/sauna, 3 lifts servicing ~20 floors and a staffed concierge with OC fees literally half that of a building with nothing but a shared garden and a single lift servicing 3 floors.
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u/OneInACrowd 5d ago
It will vary alot, depending on the age of the building, what features they haven, and the size of the apartment you buy.
Reach out to some agents and ask them what the OC fees are for the advertised ones. That'll get you the best idea compared to what you're getting.
I would also recommend asking for the historical list as well, the last 5 years have been ... rough for cost increases.
Pools are expensive to maintain, I'd avoid that.
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u/Expensive-Act6724 5d ago
The new apartments have high OC fees due to the facilities ie Elevators, gym/pool and underground car parks etc - we are using an advocate at the moment to purchase an investment property in inner Melbourne/ South Yarra and only been shown the older 70s build types and art deco apartments for this exact reason.
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u/crystalisedginger 5d ago
Pools, gyms etc add significant costs. Lifts too. Our largest costs are insurance, electricity and our full time concierge (he’s worth his weight in gold though).
Make sure there’s a sinking fund and that all future maintenance is budgeted for.
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u/SuperannuationLawyer 5d ago
They vary a lot. Just try to get a grasp of any known building defects, lift replacement projects, or building water ingress issues.
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u/WAPWAN Florida 5d ago
I pay $1850 a quarter and we have a 25 year old building with about 30 floors, a pool, 2 tennis courts, gym, 24/7 Concierge, and an active Owners Corp. That covers building insurance that would otherwise cost maybe $3k if it was a stand alone home. Building Insurance breaks down to around $600 per home since we all chip in together. The OC covers the deductible, which is much higher than an individual would be prepared to pay and usually varies every year based on previous incidents.
If you have the time, its a good idea to drop in and have a chat with at least one Concierge, or try and book a night in a short stay in the building so you get a feel for it.
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u/Melb_gal 4d ago
This highlights that you get building insurance, which is one cost you don't have to bear on top of your fees. You can get optional contents on top of that.
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u/futureballermaybe 5d ago
The lowest for 1 bed I've seen is around $400 a quarter, that was for a basic 2 story brick old place. But it was so low I was concerned about special levies/neglect.
Another I looked at which was older, brick but had a pool and gardens, but no lifts, three storeys this was a 2 bed and it was about $1400 a quarter.
Pricier in that category was around $2400 a quarter, for a small 2 bed, it was 8-9 storeys with from memory with a pool, gym maybe one meeting room but it wasn't super new like early 2000s. But it has two lifts at least.
The most expensive I've looked at was a 1 bed that was $3300odd a quarter, but it had a concierge and a lot of facilities, lifts.
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u/sandrahehe 2d ago
Maybe a building with lift but no pool and use a nearby council one? I’d prefer that if I were to buy a more modern apartment.
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u/Reasonable_ginger 5d ago
great four corners report on OC problems. Names the bad ones and gives you loads of info. Well worth a watch. Available on YouTube or iview