The ins and outs of strata finance

If your owners corporation or body corporate needs to renovate or provide repairs to your apartment building, there are 3 main ways to cover the cost:

  • Using money from your sinking fund
  • Raising a special levy
  • Taking out a loan

The best option will depend on your circumstances, however you might not have enough money in your sinking fund, and special levies are often not the preferred choice of owners, who need to find the money for an unplanned expense. 

The benefits of a strata loan

With strata finance, money is provided to your owners corporation or body corporate and repaid through levies over time rather than as a lump sum. Strata finance allows work to start immediately without needing to raise special levies or wait for the money to add up in your sinking fund. Its benefits include:

Peace of mind

  • Your loan is unsecured 
  • The immediate cost of work is reduced
  • Funds can be accessed quickly once approved 
  • Your loan can be used for repairs and improvements to your building

Improved lifestyle

  • Repairs can be done immediately, without further deterioration
  • Capital value and building standards are improved
  • Instead of doing small jobs as money becomes available, multiple projects can be bundled into one

No large financial burdens

  • Loan repayments are incorporated into quarterly levies
  • You don’t need a mortgage or personal guarantee 

If you’re considering finance for your window or door replacement, our preferred partner, StrataLoans is a trusted provider of strata finance to our clients. To find out more, visit strata-loans.com or call 1300 785 045.

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