Communal living comes with a price tag, though – namely the levies and taxes owners pay for the upkeep of the property, says personal finance websiteThe site spoke to property experts about what is legal and fair, and what owners can do if they feel their levies are excessively high.Every homeowner in an estate or complex must pay a monthly levy to ensure the scheme is run efficiently and benefits everyone.
This means you pay for everything from water infrastructure and administration to garden services. Security is another major shared expense. Data per unit is another potential cost, and owners need to take all of these charges into account when they purchase a unit in an estate or complex. This Act states schemes must set up a reserve fund to ensure there are enough savings to cover emergencies. Unfortunately, it takes time for schemes to build up reserves, which must be equal to the income earned by the scheme in the previous financial year.
“Owners should always attend AGMs so they can review the budget, make recommendations to reduce costs, and vote on important issues,” he said. “Always insist on obtaining quotes, choose reputable contractors, and consider installing cameras instead of having security personnel patrol the estate.” “There are ways to limit special levies and control your investment as a member, but it is important to be reasonable in doing so, as restricting the trustees severely will prejudice the running of the scheme.”