You have bought a dwelling, which could be your new home or an investment, and so starts your journey as a homeowner.

When you buy a multi-unit apartment or a row house, you share common areas—driveways, walls, amphitheatres, swimming pools, or green spaces—with your neighbours. You need rules to govern and maintain these common areas, and that's where a body corporate or a resident society comes in.

Understanding Body Corporates and Resident Societies

Body Corporates: The Established System

Body corporates have been part of the New Zealand property management space for a long time. They were created as part of the Unit Titles Act 2010. In a body corporate, when you buy an apartment or multi-unit apartment, the land underneath the building is owned collectively. It covers exterior building maintenance and is deemed more expensive due to additional responsibilities and legalities.

Resident Societies: The Modern Alternative

Resident societies are more recent and common when you buy townhouses. Here, you own the land beneath your property and co-own common areas with your neighbours. The Incorporated Societies Act governs resident societies, which are responsible only for the upkeep of common areas and insurance payments. You will maintain your building.

Membership and Financial Considerations

How do you become a member? Body corporates are compulsory for multi-unit apartments, and when you buy a property from a developer, you automatically become part of the resident society that's set up.

In a resident society, you are likely to incur lower costs. By paying your insurance through the society, you could save more because you buy your insurance policy as a group and can enjoy a group discount.

Comparing Responsibilities

Things work differently for a body corporate because it has more responsibilities and provides more services. If your body corporate owns the outside of an apartment block, it ensures that it's fully maintained. You will not have the hassle of doing it personally; instead, you pay a fee towards the maintenance.

Resident societies were created primarily to protect and enhance the value of the property, so the common areas are always looked after. Any structural changes will require the owners to step in. However, body corporates charge a heftier fee yet handle all the maintenance and attend to the smallest details.

Current Market Trends

In the present scenario, with growing housing density and demand for better amenities, resident societies are on the rise. As a home buyer, it's crucial to research thoroughly and factor in the costs associated with being part of a resident society or body corporate before you decide on what home to buy.

Professional Management Solutions

Want expert help managing your body corporate or resident society?

📞 Call us at 0800 888 223 or 📧 email enquiries@oaksproperty.co.nz for tailored advice.