Strata throughout Australia is now big business with big dollars attached. Is it time strata grew up?
Why do I ask?
- Because the first strata building in Burwood was built in 1961, it was 18 apartments with a capitol value around $180,00.00 and an annual turnover around $4,000.00
- Today I sit on two strata committees with a combined turnover of 1.2M and combined assets of over $104M dollars.
What has changed since 1961?
- Strata in 2020 is worth a whole lot more money than it was in 1961
- Strata company’s assets can and often do exceed $50M dollars
- Strata company’s yearly budgets can run into 1M dollars
- Strata has evolved into mixed use where commercial, residential and hotel accommodation come under one title
Has much has NOT changed since 1961?
- Strata committees remain unqualified
- Strata committees remain unpaid
- Governance oversight remains a mystery to many strata committees and lot owners
- Strata levies are still regarded as a cost rather than the investment they could be
- The working relationship between strata managers and strata committees
Could Strata do with some structure? We gave it a go
Moving into 2020 what does your strata company need to run more effectively?