Question 1

What are the benefits to me if the Body Corporate borrows?

Accepted Answer

You have the freedom to get important capital works done now. You save money compared with sinking funds and special levies. You only pay for what you use when you use it. Body Corporate Funding also provides tax advantages for many owners. We recommend obtaining tax advice.

Question 2

Why should we borrow rather than have a long term maintenance funds or a special levy?

Accepted Answer

Borrowing will be cheaper for most Bodies Corporate and most owners, most of the time, when taking into account tax advantages and opportunity cost. Borrowing enables you to get important works done now rather than wait as you accumulate the money. You get the benefits of improved lifestyle and enhanced capital return now rather than having to wait. You can get all the works done in one go, rather than having to manage a staged project. You avoid potential legal liability for the property not being properly maintained. You avoid the financial distress caused by large special levies. You can be sure you have the funds to do the work rather than hoping that all owners can pay the special levy on time.

Question 3

How do Body Corporate loans affect individual strata owners?

Accepted Answer

Body Corporate loans are not provided to individual owners. Lannock Strata Finance , for example, does not require personal financials or guarantees. Body Corporate loans are made to the Body Corporate and there are no mortgages, caveats, liens, or charges. Individual owners repay the loan through a special levy over the course loan.

Question 4

What are the main benefits of taking out a Body Corporate loan?

Accepted Answer

Body Corporate loans are a fast and cost effective solution, with the additional benefit of increased flexibility. Lannock Strata loans allow you to draw advances as needed. You can specify the terms for each advance (1-15 years), plus an interest only period for up to 2 years.

Question 5

What security do you take? Is there a mortgage?

Accepted Answer

None. We make a loan to the Body Corporate. There are no mortgages, no liens, charges or caveats or any registration or impediment on the title of the common property or of any unit.

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