Baedex Project finance
Special levy funding for Sectional Title Schemes
In addition to routine maintenance, bodies corporate periodically undertake large, capital intensive projects like security upgrades, painting of common property and elevator replacements. Owners enjoy the benefit of these improvements - a pleasant living environment and enhanced property values - over many years. Ideally, projects are paid for from cash reserves, or by raising a special levy. Practically, insufficient reserves and the inability of owners to pay costly special levies on time often delay urgent projects.
The solution: Baedex Project Finance
Baedex provides project finance to Bodies Corporate. This entails:
*Funding special levies raised for property maintenance or improvement projects
*Flexible repayment terms that match the useful life of improvements
*Competitive interest rates
*Participating owners pay the special levy in installments
*An opt out for owners with the financial means to pay the special levy upfront
Access to funding allows trustees to kick start overdue projects. By matching the repayment term to the useful life of improvements, owners only pay for that portion of the improvement that they enjoy. Should a unit be sold prior to repayment of the special levy, the new owner takes over the seller’s monthly instalment obligation. The fact that the managing agent remains responsible for levy administration means that there is no disruption in the operation of the scheme.
Find out more
Contact Willem le Roux on 021 974 3617 or willemleroux@baedex.co.za for more information on how Baedex’s Project Finance Solutions can help Bodies Corporate kick start overdue projects now.