Multiple Credit Cards - Plan of Attack?

• 

  tsunamisurfer on 27/09/2018 - 15:36

  +3

  Strata Bill of $70k?

  • 

    xdivino on 27/09/2018 - 15:37

    Balcony replacement and some other bits.. it's split over the next few months but it's been known about for 5years.. all coming to ahead now.

    • 

      cypher67 on 27/09/2018 - 15:41

      +4

      Isn't the idea of paying strata so there is a pool of money available to pay for building repairs and maintenance.
      Having to pay a massive lumps sums to get work done defeats the purpose.

      • 

        CyberMurning on 27/09/2018 - 15:42

        +2

        it means the Body corporate spend too much over the years and didnt plan/save enough for rainy days like that.
        or the building simply too old
        or just unlucky event

        welcome to the world of apartments….

        • 

          GG57 on 27/09/2018 - 15:59

          +1

          @CyberMurning: Indeed.

          And don't forget that the majority dictates what is to be done / how much is spent.

          You could contribute for years and not see any benefits by the time you sell.
          Or you could buy into the building and suddenly have to contribute a large amount.

          • 

            HighAndDry on 27/09/2018 - 16:56

            @GG57:

            And don't forget that the majority dictates what is to be done / how much is spent.

            Yup. There are some owners that'll cut quarterly contributions to the bone, and skimp on basic maintenance work, and then suddenly a few years later everything's falling apart.

      • 

        [Deactivated] on 27/09/2018 - 15:43

        Lousy managers. This sort of poor planning is what puts me off buying anything with shared liability.

        Imagine buying a $300k apartment and finding out there's a $50k strata bill coming up.

        • 

          boomramada on 27/09/2018 - 15:49

          @[Deactivated]: So you rather pay $5000 per year for next X year predicting that Balcony might collapse in X years time and need replacing? What if it didn't? Ever thought of that.

          • 

            [Deactivated] on 27/09/2018 - 15:53

            @boomramada: It's called a sinking fund.

            I wouldn't agree to a $5,000 pa sinking fund but there has to be some realistic amount set aside. If the average building looks like it needs $5,000 pa sinking fund, I'd stay far away (like physically out of harm's way).

            And if it didn't, the sinking fund can be used for general maintainance or improvements. It's non-refundable money that's still owned by the collective of owners managed under the strata.

            • 

              boomramada on 27/09/2018 - 16:01

              @[Deactivated]: I do understand what is sinking fund is but, I don't think any one would plan for this big job as 50k x number of units. That is almost like major re development.

            • 

              dcep on 27/09/2018 - 16:26

              @[Deactivated]: units in cbd easily 5k pa strata fees

              3.5k goes to admin

              1.5k left for sinking + insurances

              • 

                [Deactivated] on 27/09/2018 - 16:32

                @dcep: I'm aware of that but $5k for sinking fund only is excessive.

          • 

            xdivino on 27/09/2018 - 15:56

            @boomramada: Not an issue with the Body Corporate or Managers. We have had an insane about of projects forced upon us due to council amalgamation and fire audits and other provisions where our special levies have covered this off, we have a good balance for sinking fund but the scope of works for this is quite sizable for balcony and entry ways fully replaced. We've all had it planned for over the past 5 years but couldn't formalize the spend on strata till now, plus better in our accounts earning interest than strata funds.

            For now i'm trying to work out how to get some bonus's out of the spend i.e points.

            • 

              boomramada on 27/09/2018 - 16:02

              @xdivino: Sorry went bit of off topic there, make sure there is no fees associate with CC when you paying it.

              • 

                xdivino on 27/09/2018 - 16:13

                @boomramada: No problem :)
                yeah, we pay via Strata Pay, they're good and fee's a standard % depending on type of card.

                Will need to max out to the point scales for the cards, ie 2 points per $1 up to $x spend.

                So far from what i've researched only the Westpac one is without annual fee's.

                • 

                  cypher67 on 27/09/2018 - 16:35

                  @xdivino: What % to you pay to pay via CC? If it is 1.5%, is $1050 worth 140,000 Westpac points? I believe westpac have a different point system, where its not a 1:1 QFF point etc. All this effort to get so many cards, need to do a cost vs value analysis.

                  • 

                    xdivino on 27/09/2018 - 16:39

                    @cypher67: This one is QFF points: https://www.ozbargain.com.au/node/401343
                    It's approx 1% I believe

                    It's ultimately pre-paying the fee to get a flight I guess you could say.. but better than paying it and getting nothing.. even if I ozbarg a flight cheap it's an free upgrade perhaps.

                    • 

                      cypher67 on 27/09/2018 - 17:57

                      @xdivino: Might want to recrunch your numbers as its not 2:$1

                      2 Qantas Points for every $1 spent on eligible purchases in foreign currency,
                      1.25 Qantas Points for every $1 spent on eligible purchases in Australia,
                      0.5 Qantas Point for every $1 spent at government bodies in Australia such as Australia Post & the Australian Taxation Office.
                      Westpac Altitude Black Mastercard
                      0.75 Qantas Points for every $1 spent on eligible purchases.

          • 

            HighAndDry on 27/09/2018 - 16:38

            +1

            @boomramada: Regular maintenance is generally preventative in nature. It's possible that a smaller amount of $2,000 per year over the past 10-15 years would've meant the balcony wouldn't need replacing now.

        • 

          Quantumcat on 27/09/2018 - 16:58

          +4

          @[Deactivated]: That's why you read strata meeting minutes before deciding whether to buy a place under strata

          • 

            [Deactivated] on 27/09/2018 - 17:01

            +1

            @Quantumcat: Sound advice.

          • 

            John Kimble on 27/09/2018 - 17:05

            @Quantumcat: Pffft, ain't no body got time fo dat

            • 

              xdivino on 27/09/2018 - 17:16

              +1

              @John Kimble: Strata Search is a must before buying. I bough knowing this would come up.. albeit we thought it would be much less.. the scope is huge. Unfortunate for one neighbor they're having to sell as the works are too expensive for them.. but we've known about this for many years. Just sucks with all the other works our council enforced upon us at the same time.

              • 

                John Kimble on 27/09/2018 - 17:27

                @xdivino: I'm just messing around. We had a 50k special levy too, so I know your pain.

• 

  burgermaniac on 27/09/2018 - 18:41

  +1

  Plan of attack? 70k is a lot of money to spend, so if you do spend that kind of money, look at the individual credit cards with awards points bonuses for spending the correct amount. Calculate what the best return per dollar is (trying to figure out the best value). Go on Finder.com.au and use their search list, to find cards (they will display bonus points and annual cost). With this now, determine what card has the best value by dividing the amount of bonus points (after 3-4 months spend requirements) and divide this by the annual cost of the card.

  In this situation I would have 1 big data sheet out now, with the best "budget" credit cards. Next step is to determine if there will be any travelling done, if so you can look at cards with lounge access (ANZ Frequent Flyer Black/Amex Charge Card) if you deem it necessary and worth the extra cost, that being said if you do want lounge access it will be rather expensive.

  Also, determine if the 1-3% charge (even more for AMEX, maybe?) is worth it. Then add the cost of the credit cards (that could be upwards of 10k). Calculate the theoretical total points you would receive, and determine whether the 11-12k spent on it will be worth it.

  Spending the points: Little trick I've learned, pay for the airline seat, but upgrade that with points, gives you the best ROI. One example I once noted is on a QANTAS flight between Sydney and London return. It cost (example) 100,000 points + $400 tax to get the seat. But, if you bought a discount economy seat, it would cost 110,000 points to upgrade, and in many cases there can be sales at $1200. <- That was just a theoretical example, using slightly exaggerated figures.

  Remember this is all theoretical, but I hope this is good use!

• 

  PAOK11 on 27/09/2018 - 19:07

  If you sold when they told you about it 5 years ago would you still have to pay ?

  • 

    John Kimble on 27/09/2018 - 19:32

    No, why?

    • 

      PAOK11 on 27/09/2018 - 21:38

      if strata told me I need to pay $50 or $70k I would sell my property the next day

      • 

        endotherm on 27/09/2018 - 23:08

        +1

        And whoever bought it from you would give you $50-70k less than it's worth.

        • 

          PAOK11 on 28/09/2018 - 00:34

          @endotherm: Lol yeh coz people read contracts & employ solicitors instead of conveyances who cant tell the difference between the general and special conditions