top of page
Search
Samantha Reece

New option to fund strata repairs and upgrades

Apartment owners who need to fund expensive building works can now use a highly innovative loan solution to solve their two big problems.


The first problem you and your fellow strata owners face is finding the money to pay for the project. The second problem is managing the diverse needs of the different owners – with some owners wanting to use their own funds (through a special levy) and others wanting to borrow the funds (through a strata loan).


Austrata Finance can solve both those problems with an Australia-first solution, known as the Austrata Hybrid Loan®.


THE SOLUTION TO PROBLEM #1: FUNDING THE PROJECT


Your strata scheme uses an initial strata loan to pay for the building works. The benefits of using the Hybrid loan are as follows:

·       A loan approval letter provides evidence to builders and insurers that your strata scheme has the financial capacity to pay for the project, which means that the building contract can be signed, typically saving numerous months as compared to waiting for all owners to pay a special levy.

·       You can avoid building cost escalations that can occur whilst waiting for all owners to pay a special levy.

·       Interest is only paid on the strata loan when it is used and is only paid on the balance of the loan that is used i.e. you do not pay for what you do not use.

·       If you pay a special levy by drawing on a mortgage offset or by taking money off term deposit, you will pay similar or even less interest using a strata loan compared to a special levy during the period of the building works.


THE SOLUTION TO PROBLEM #2: CHOICE FOR OWNERS - THE AUSTRATA HYBRID LOAN®


At the end of your project, your strata scheme refinances the initial strata loan with the Austrata Hybrid Loan®, where all owners are given the opportunity to use your own money by paying a lump sum to effectively pay out your share of the initial strata loan.


As an owner under the Austrata Hybrid Loan®, you have the choice:

-        pay a lump sum, avoid ongoing loan interest and have no more to pay; or

-        pay ongoing loan levies over the remaining loan term.


Learn more about the funding choices for strata schemes here https://www.youtube.com/watch?v=r5jsWlMSYOU


For more information about taking out a new Austrata Hybrid Loan® or refinancing your existing loan with an Austrata Hybrid Loan®:

-        call 1300 936 560; or

-        email enquiries@austratafinance.com.au; or

-        fill in this form.



319 views0 comments

Comments


Post: Blog2_Post
bottom of page