Home owners corporation fees: Victorians to get help to deal on payment plans, disputes as costs rise
Victorians struggling to pay owners corporation fees will be given advice on payment plans and dispute resolution as part of new mandatory fee notices.
It comes after real estate agents across Melbourne's CBD and inner suburbs revealed significant numbers of apartment owners and landlords have been forced to sell in recent years as they grapple with rising owners corporation and other costs in recent years.
The rising costs are also thought to have underpinned significant rental increases that have hit Melbourne's CBD, with latest PropTrack data showing the typical unit in the city now costs $650 a week — compared to just $380 a week in 2022.
'Disgust': Boomers unleash on crying Aussies
Consumer Affairs minister Nick Staikos announced the new requirement for operators of owners corporations this week alongside the availability of an owners corporation hotline.
Mr Staikos said the goal was to ensure owners got the advice and support they needed.
'These new owners corporation fee notices will ensure they get helpful advice and support about their options if they're struggling to pay their fees – not just a demand to pay up,' he said.
The new notices will replace older forms to notify owners of overdue OC fees, with past formats no longer valid from this week.
But, with the moves coming amid a wider state government push for more high-rise homes in Melbourne, Real Estate Institute of Victoria chief executive Kelly Ryan said more needed to be done around virtually 'unregulated' owners corporations in Victoria.
'It's always important to find ways to support people, we don't want to see people selling because the costs are too onerous,' Ms Ryan said.
'But that there's a problem at the end with the owner is a sign that there's a problem at the start with the owner's corporation. If we have got to that point where owners are getting payment plans, you have to go back a number of steps.
'If we are encouraging high-rise building in more locations, we need to get this right now. There's no point playing catch up.'
Strata Community Association of Victoria general manager Susan Chandler said there were about 1.27 million people living with an owners corporation around the state and welcomed the new phone channel announcement as a 'practical step' in making them better understood.
'For many residents, especially first-time apartment owners, navigating strata rules can be overwhelming,' Ms Chandler said.
'A dedicated helpline provides a much-needed support bridge between communities and the government.'
She added that payment plan options would help reduce the risk of buildings being left short by unpaid strata fees, improving the 'financial health' of many strata comunities — though they are still calling for the creation of a Victorian Strata Commissioner.
Ray White Southbank principal Andrew Salvo said in recent years rising owners corporation fees adding close to $1000 a year to a typical two-bedroom apartment's annual costs — as well as interest rates and additional landlord costs in the form of meeting new rental minimum standards — had combined to drive sales in the CBD's apartment market.
'And it has led to rents rising as there were investors leaving the market and there was a supply issue with migration increasing,' Mr Salvo said.
The agent said that in many cases the rising cost of owners corporation fees had been due to contracts being Consumer Price Index (CPI) linked, meaning a high-inflation environment had driven fees up.
While payment plans for OC fees could give some owners an option, Mr Salvo said he didn't think it would have much of an impact given the significance of other costs around rental protections and interest rates.
website or by calling 1300 558 181.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Herald Sun
4 hours ago
- Herald Sun
New owner for rundown Toorak mansion with a wild history
A dilapidated Toorak mansion with a colourful history has fetched more than $5m. Named Cloyne, the circa-1926 Georgian Revival house at 611 Toorak Rd was scheduled to go under the hammer on Saturday. But due to a high level of interest from buyers, a boardroom auction for the property was held on Thursday. RELATED: Toorak land now asking $40m with no permit Toorak mid-century home listed with plans to transform into $8m luxury residence Myer family reveal new look for Toorak estate aiming to be Melbourne's second $100m home Jellis Craig Stonnington director Nathan Waterson declined to comment on the sold price but industry insiders indicated the five-bedroom home changed hands for a figure above the $4.75m-$5.225m asking range. The abode featuring a ballroom and a pool flanked by lion statues was previously owned by Louis Nelken, who was reportedly a butler to King George VI. In 1935, newspapers covered a reception that Mr Nelken and his wife Lesley held for guests to meet the then-political candidate for the seat of Fawkner, Harold Holt. Mr Holt later became the Australian Prime Minister and disappeared while swimming near Portsea in 1967. The Nelken's parties often made the gossip columns including a 1948 Melbourne Cup eve soiree they hosted for 300 people. Two years later, thieves broke into Cloyne and stole £5500 worth of jewellery, drank a bottle of Mr Nelken's beer and smoked his cigarettes. In the 1960s, Melbourne playboy and pilot Don Busch owned Cloyne before it was sold to hotelier William Drever. The mansion, which is protected under a heritage overlay, was designed by influential Australian architect Harold Desbrowe-Annear. Its interior has been subject to partial renovations across past years and requires significant work to restore its former glory. Three bidders contested the auction for Cloyne including one Canberra-based buyer, although the house was bought by a Melbourne family. 'I would say that all parties were there due to the architectural heritage of the home, the Harold Desbrowe-Annear design was a drawcard for a lot of people,' Mr Waterson said. According to PropTrack, Victoria recorded a preliminary 68.4 per cent clearance rate from 250 early auction results this week. About 1058 homes are expected to go under the hammer across the state next week. Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox. MORE: Former Carlton star Fraser Brown seals nine-figure deal Price shock: Luxe Aussie mansions now start at $2.52m Balwyn North arcade hits market after 50 years
Sky News AU
4 hours ago
- Sky News AU
Victorian Labor government to spend $81 million on economic and policy advice
Victoria Shadow Treasurer James Newbury discusses the prediction of the Victorian Labor government to spend $81 million in the current budget on economic and policy advice. 'The government is hiring an executive on $220,000 a day,' Mr Newbury told Sky News host Steve Price. 'For $81 million, I don't think we're getting very good advice because the government doesn't seem to be getting any better. 'What's this $81 million going towards?'
SBS Australia
8 hours ago
- SBS Australia
Housing heat: The city picking up pace as prices break records
National home prices hit a new record in May, growing by 0.39 per cent, while Melbourne had a monthly growth of 0.79 per cent. Source: AAP / Diego Fedele Australian home prices have continued to rise, reaching a new record high last month, amid falling interest rates. While all capital cities saw prices increase in May — with Sydney, Brisbane, Adelaide, Perth and Darwin all now at price peaks — Melbourne had the strongest monthly rise of 0.79 per cent, according to PropTrack's latest Home Price Index. The report, released this week, states national home prices lifted 0.39 per cent — the fifth consecutive month of growth — meaning they're up 4.12 per cent year-on-year. "With interest rates falling, price momentum has increased and broadened, with all capitals seeing prices lift in May," REA Group Senior Economist and report author Eleanor Creagh said. 'Price growth across the capitals is starting to converge. Melbourne, which previously lagged the other capitals, is now seeing home price growth pick up." Melbourne is continuing to recover after a "prolonged period of softer growth", the report says, with the median home value sitting at $782,000. However this remains 2.85 per cent below the city's peak. It was also the only capital city to record a drop (-0.38 percent) in year-on-year home prices in May. Meanwhile, Perth's median home value was $787,000 — representing the first time in a decade that it has overtaken Melbourne. Perth had a monthly rise of 0.27 per cent, while Brisbane lifted 0.24 per cent. "Cities such as Perth and Brisbane are now seeing growth moderate after strong outperformance. The growth seen in all capital cities is underpinned by improved buyer sentiment and renewed confidence following interest rate cuts," Creagh said. Along with Melbourne, Adelaide and Sydney led the monthly rises, at 0.52 and 0.39 per cent. Outside the capital cities, regional prices rose 0.25 per cent, according to the report, with annual growth of 5.19 per cent outpacing the combined capitals (3.71 per cent). "With further price increases and rate cuts expected, prospective buyers are moving off the sidelines and accelerating their purchasing decisions." Meanwhile, the Organisation for Economic Cooperation and Development (OECD) warned Australia to boost housing supply and address falling affordability as it revealed a downgrade to its economic growth forecast for 2025. It said Australia's gross domestic product would grow at 1.8 per cent this year, down 10 basis points from its prediction in March, as United States President Donald Trump's tariffs hit demand for Australian exports — especially if China experiences a marked slowdown. The organisation downgraded its global growth forecasts from 3.1 per cent to 2.9 per cent this year. But economic growth is expected to accelerate to 2.2 per cent next year — an increase from its prediction earlier this year and in line with the OECD's estimate of Australia's economic potential. The OECD's forecast for 2025 is lower than the Reserve Bank's estimate of 2.1 per cent but in line with its 2026 prediction. Inflation will remain close to target, averaging 2.3 per cent over 2025 and 2026, the OECD projected. That's below RBA estimates, which predict headline inflation accelerating to 3.1 per cent by the end of the year. The OECD said the central bank would be warranted to continue easing interest rates, but must be nimble to change path in case of unexpected external shocks. Looking ahead, Creagh warned to expect further home price growth throughout the year. "While stretched affordability will remain a constraint, a chronic lack of new housing supply, population growth, and targeted buyer incentives are expected to keep upward pressure on prices," Creagh said. "In combination with interest rates continuing to move lower, these factors are likely to drive further price growth throughout the remainder of 2025.' — With additional reporting by the Australian Associated Press.
