New Flexible Funding Solution for strata repairs and upgrades

Apartment owners facing the challenge of funding essential repairs or upgrades now have access to a loan structure designed to resolve two longstanding problems in strata finance.

The first challenge is securing the necessary funds to commence building works. The second is navigating the differing financial preferences among owners, some who want to use their own money and others who want or need to use borrowed money.

The Firstrata Hybrid Loan solves both challenges.

ACCESS TO FUNDS

With the Firstrata Hybrid Loan, the strata scheme can immediately access funds through the loan facility, enabling the project to proceed without delay. Key advantages include:

·       Faster project commencement: An approved loan facility demonstrates financial capacity to builders and insurers, allowing contracts to be signed promptly, often months earlier than waiting for special levies to be raised.

·       Protection against cost escalations: Delays associated with collecting special levies can expose schemes to rising construction costs. Early access to funds can mitigate this risk.

·       Interest efficiency: Interest is only charged on the amount drawn down, not on the full loan facility. This means owners only pay for what is actually used.

FLEXIBILITY FOR OWNERS

A key feature of the Firstrata Hybrid Loan structure is the ability for each owner to choose how they contribute to the repayment of the project costs:

·       Pay your share upfront, avoiding any strata loan interest and loan repayments; or

·       Pay ongoing loan levies, spreading the cost over time in line with the strata loan terms.

This approach empowers owners to make financial decisions that best suit their individual circumstances, whether that involves using available personal funds or by financing through the strata loan.

When deciding on the most appropriate option, owners can weigh up factors like prevailing interest rates and their future property plans, including whether they intend to hold or sell their unit.

Learn more about the funding choices for strata schemes here:

Strata Finance Options for Apartment Owners

To explore funding options tailored to your strata scheme, including the Firstrata Hybrid Loan, consult a Firstrata Finance specialist.

Call 1800 59 59 00; or

Email enquiries@firstratafinance.com.au; or

Complete this Funding Enquiry form.