money money money 705 special strata levy, investing for niece & nephews, SMSF investment, Spaceship + more
Jan 29, 2024
Financial adviser Jess Brady joins the hosts to discuss topics such as buying into strata, gifting shares to a teenager, investing through SMSF, moving shares out of Spaceship, record keeping for tax time, and renting out a farm for events. They also announce the launch of a new podcast called 'Financially Fierce' focused on empowerment and confident money decision-making.
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How Strata Fees Really Work
- Strata fees split into administrative fees and a capital works (sinking) fund, which cover running costs and planned major repairs.
- Unexpected subsidence and other major defects often require special levies that are not covered by insurance and can be very costly.
Negotiate Or Walk From Levy-Risk Deals
- If a strata property has large, scoping-based special levies, reduce your offer substantially or walk away.
- Factor in tenant disruption, lower rents during works, and contingency for cost blowouts when budgeting.
Do Thorough Strata Due Diligence
- Request the strata company's AGM minutes and financials as part of due diligence before making an offer.
- Confirm what's covered by the special levy so you can price a buffer and avoid being surprised by rising costs.