Size Matters (or Is Bigger Better ?)

They say size doesn’t matter … it’s what you do with it that counts.  But, in strata maybe size really does matter.

Whilst smaller buildings have many attractive features and qualities that improve amenity and lifestyle, there’s no doubt that larger buildings are better from economic, stability and location perspectives.

Here’s 7 reasons why.

Firstly, there’s simply more people to share expenses.  And, since many expenses do not increase  proportionately with size (like bank charges, insurance, management fees, accounting and legal costs) it’s cheaper (per owner) to be bigger.

Secondly, bigger strata schemes have and can afford more facilities (pools, tennis courts, spas, gyms, etc) and services (like security patrols, concierge, etc) so amenity options are increased.

Thirdly, in bigger strata schemes there’s a larger and more diverse group of people to contribute to discussions, debates, decisions and efforts on strata matters: increasing the likelihood of better outcomes.

Fourthly, impacts from out of line owners are lessened in larger strata schemes as they form a smaller and smaller minority.  So, unpaid levies have less effect on cash-flow, noise spreads to less people, minorities are smaller and majorities are larger.

Fifthly, in larger strata schemes owners are able to buy better living locations at more affordable prices since the land component forms a smaller part of the total value of the building.  That’s one reason why newer buildings closer to the city tend to be larger (and larger).

Sixthly, in larger strata schemes managers, committees and others have less doing and more telling per person.  In other words, the same actions cover more people but you generally have to explain them more often.

Seventhly, in larger strata schemes owners and residents can enjoy more privacy from neighbours, less identity in the strata scheme and (dare I say) anonymity.

At the heart of this is the fundamental concept of high density … namely, that by using higher density for housing and sharing the capital input, operating costs and efforts; owners and residents can enjoy better living locations, facilities and experiences at lower average costs.

But, in case you disagree, I’m off to clean my pool that I haven’t swum in for 6 months before I mow the lawn and take out the trash and recycling and clear the gutters.  After that I can relax.

Francesco …