Body corporate (owners corporation) fees and levies can be one of the biggest sources of anxiety for investment property sellers—especially in apartments, units, or student accommodation. If your property comes with high annual fees, does it doom your sale, or can it be positioned as an attractive investment?
1. Understanding Investor Thinking
Experienced investors rarely focus on the headline fee alone—they look at the total net yield. Genneva Smarrelli (Collings Real Estate) recommends full transparency and solution-focused negotiation, rather than hiding or downplaying levies.
2. The Right Buyer Profile
Properties with high fees are best positioned to seasoned investors who understand the trade-off between entry price, net yield, property management, and risk (insurance, maintenance reserves, etc).
3. Net Yield Versus Gross Yield
Always present both. A property with $5,000 body corp fees, but strong rental income, can still deliver a solid net return (especially if it’s priced appropriately). Disclose all levies, capital works funds, and recurring outgoings in your info pack.
4. Case Study: Carlton Student Apartments
Genneva sold three under 50sqm student apartments in Carlton—each with considerable fees and a flood of competing, cheaper listings online. By framing the deal around net investor return, two cash-ready buyers were found. Transparency about levies and direct presentation to investor buyers made the sale possible.
5. Strategies for Sellers
- Emphasise total net yield, not just rent
- Prepare a clear, honest breakdown of all fees
- Show buyers how to model real returns
- Target buyers who already own units and understand outgoings
- Avoid overpromising—let the numbers speak
6. Q&A
Q: Should I lower my price if the fees are high?
A: Price appropriately, but real investors will analyse deals on total return, not the headline fee alone.
7. Ready for a Real Strategy?
Are you holding an apartment or unit with high fees or special levies? Genneva can help you frame and position the deal to the right buyer pool. Get tailored, transparent advice from Collings—start the conversation today.
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