Strata Title Cost Benefits
Strata or community title can be utilised to provide a flexible form of community governance that offers lifestyle, economic and environmental benefits not found in traditional freehold developments.
One of the key economic benefits offered by strata title developments is the ability of the body corporate to purchase in bulk and on-supply services to both common areas of the community and individual residents. These services range from utilities such as electricity through to maintenance of lawns and gardens. By aggregating demand and leveraging “community purchasing power” savings of tens of percent can be achieved when compared with full retail process paid by individual consumers.
Another benefit of strata title developments is the ability of the body corporate to establish a user pays system to recover the cost of capital equipment over its economic service life rather than having the entire cost paid for up-front by the developer or first home buyer. This mechanism can be used at the inception of the community by the developer to help reduce selling price or by existing communities to replace items of capital equipment without the need for special levies.
Silver Asset Services is actively working with developers and existing communities to help leverage “community purchasing power” and “user-pays” mechanisms to reduce up-front and ongoing costs as well as incorporate sustainability initiatives that have previously been cost-prohibitive.
Further details on strata title benefits can be obtained by downloading the following presentation:
Why Strata Title?