A group of eight Bondi apartment owners were in the process of planning for future capital works required for their building.
Typical Bondi building maintenance costs came up, such as replacing the windows and doors, brickwork repair, painting and an outstanding fire upgrade. To add to the costs, the owners were also told along the way that their roof would also soon need replacing.
Not what you want to hear...
In total, the capital works come up to about $1 million. The owners were faced with the task of raising the funds quarterly into the sinking fund.
Next Level Sydney was introduced as Strata Development Specialists to review the plans and create a Property Potential Report. From this, it became evident to the owners that they would be allowed to build into the roof and add a penthouse level, which would be valued at approximately $5 million, without involving a developer.
A plan was created and put in motion. All necessary designs, approvals, and costings were done. The project was funded by a strata loan, so the owners no longer needed to put their hands in their pockets during these challenging times. Even better, the strata loan would not need to be paid back until the penthouse is sold.
The penthouse will cost approximately $2 million to build plus the $1 million to upgrade the building. The remaining $2 million will be split between the eight apartment owners. That is $250,000 for each owner.
Jackpot
The building gets upgraded, all the capital works have been funded and each owner walks away with $250,000 for selling the building rights to their roof.
A good news story
Please contact Warren at Buy Airspace with any questions on 0415 254 420.