Although fantastic investment opportunities, Sydney apartment prices are notoriously high and luxury apartments are no exception. When buying luxury apartments in Sydney, there are many financial things to consider like legal fees, mortgage rates, stamp duty and much more. But once all of those initial costs are settled, there may be some extra costs that you have not yet considered.
So before you get overwhelmed by unexpected fees, let’s look at what you should expect to pay for once you’ve bought your luxury apartments.
Owners’ Corporation Fees
Like in any apartment building, the Owners’ Corporation fees in luxury apartments go towards the general upkeep of the building and to maintain a clean and safe space for residents to enjoy. If you don’t own any other luxury apartments in Sydney, these rates will be higher than you are used to as they cover a number of additional luxuries that most apartment buildings don’t have.
Though it will vary from building to building, here’s generally what you can expect your Owners’ Corporation fees to cover for luxury apartments in Sydney.
This covers general repairs to the building’s communal areas. This includes internal and external faults or damages. The advantage of buying new luxury apartments of course is that little maintenance is required to begin with. However, as time goes on, this may well increase with general wear and tear which is a factor you should be mindful of.
Large apartment buildings see a lot of foot traffic and require regular and rigorous cleaning to ensure your comfort and safety.
One of the major benefits of luxury apartments is the access to facilities like swimming pools, gyms, rooftop gardens and communal work spaces. These amenities must be maintained and come at a cost which is included in the monthly OC fees.
Of course, a larger building will have more residents to share these fees and if you regularly use the amenities and facilities instead of paying monthly gym fees, it could well be worth your while.
Broken lifts, plumbing issues or, God forbid, natural disasters will be covered by your building insurance, which should be included in your OC fees.
This is money put aside for any major capital works or emergency expenses such as replacing all the lifts in the building for example. A sinking fund should be included in your regular OC fees.
Before buying a new apartment, be sure to ask if there are any major works planned in future which could draw on the sinking fund or increase the levies.
Purchasing a luxury apartment can be a fantastic investment, but being aware of all the costs it involves right from the start is key to your financial planning. When looking at an apartment for sale in Sydney, remember to ask about the Owners’ Corporation fees.
Ask for access to the current maintenance plans, what the current levies are, what is covered by insurance and whether there are any major capital works planned in future. This information will help you understand your financial obligations as well as decide on rental prices should you wish to acquire tenants.