Owners corporation fees (body corporate for some states) are one of the most important—and misunderstood—factors when buying or selling investment apartments in Melbourne. As someone who spends a lot of time educating investors and owner-occupiers, I’ve seen deals stall or collapse because this single line item got ignored until late in the negotiation. Here’s my honest guide for both sellers and buyers on how to approach this often-overlooked expense.

What Are Owners Corporation Fees?
These are mandatory levies paid by owners of apartments or units to cover shared costs—building insurance, cleaning, maintenance, repairs, sinking fund, even lift and garden costs. They can range from a few thousand to over $10,000 per year, depending on the size, amenity and age of your complex.

Why the Numbers Matter (Not Just the Headline Figure)
I advise every seller to calculate both the current “ordinary” fee and any special levies, then compare those to similar buildings in the area. For buyers, the difference between $3,000 versus $8,000 per annum in fees could mean the difference between positive and negative cash flow at certain rental yields.

Impact on Sale and Negotiation
High owners corporation fees won’t always kill a deal, but they must be disclosed early and accurately. In my experience, deals are most successful when buyers understand the value they’re getting (gym, pool, lift, community) and how those fees fit their strategy. Full financial disclosure increases trust and helps offers move more quickly.

The “Hidden” Benefit for Owners
Well-managed, properly funded owners’ corporations protect your asset value, support insurance claims and keep the complex attractive for future resale. The cheapest fee is not always the best.

Real Case Example
An investor recently avoided a deal in a building with low fees, only to discover that years of underfunding resulted in a special levy. By revealing and benchmarking these costs upfront, both the investor and the seller avoided a failed contract.

Summary
Transparent owners’ corp numbers can make or break a sale. Educate, disclose and benchmark.

For tailored advice on selling or buying apartments with the right numbers, reach out to Genneva Smarrelli at http://collings.com.au/contact.