Owning a property comes with several ongoing expenses, commonly known as holding costs. Understanding these costs is crucial for any property owner to effectively manage their investment and budget accordingly. In this guide, L Real Estate breaks down the key components of holding costs for property owners, providing you with a clear picture of what to expect.

1. Council Rates

Approximately $1000-$3000 AUD per year

Council rates are a form of property tax levied by councils to fund local infrastructure and services. The value of each property is used as the basis for calculating what each property owner will pay. These fees are billed quarterly.

2. Water Service Charges

Approximately $600-$1000 AUD per year

Water service charges are not the cost of water usage but fees for water supply and sewage services. In Melbourne, these fees are billed quarterly.

3. OC Fees / Strata Fees

Approximately several thousand AUD per year

OC (Owners Corporation) fees or strata fees cover everything from building insurance and maintaining common areas to shared utilities, building works, and repairs.

Being aware of and planning for these holding costs is essential for maintaining the financial health of your property investment. Properly managing these expenses ensures that your property remains a valuable asset. For more detailed advice and guidance on property ownership, visit L Real Estate’s News regularly. We are here to assist you in navigating the complexities of property management with confidence and ease.