Reliable, flexible, unsecured loans for strata communities.
Does your strata community require finance?
Unlike most banks, we can provide an unsecured, loan to your body corporate/owners corporation, so you can meet your financial and legal obligations without delay.
And rather than a big upfront special levy on owners, you can spread the cost over several years . The Owners Corporation can set quarterly levies at a manageable level for all owners.
Our experienced team is expertly led by Roderick (Rick) Miller, a licenced builder, winner of two Master Builder Association awards, and owner-director of Armadello Finance Pty Ltd.
Rick has worked in the strata property sector since 1991, constructing, renovating, managing, investing and providing loans for apartment blocks, units and commercial buildings.
Why choose Armadello?
A cost-effective Armadello loan is likely to be your most reliable and flexible financing option.
Once strata owners have decided on a solution, our team of legal, financial and building experts will ensure your application is simple with fast approval.
The loan is a liability of the body corporate or owners corporation. Individual owners are not personally liable.
There are no surprises as all third-party costs are covered by the application fee.
No financial information is needed from individual strata title owners.
For no extra cost, we’ll provide advice and ongoing management for agreed works.
Choose from fixed or variable interest rates.
With flexible repayment schedules, including interest-only periods.
Pay out the loan at any time with no penalty except in a fixed-rate period.
How the loan process works
Contact us
Get in touch to discuss your funding needs and circumstances.
We'll create a loan proposal
We’ll work with your strata manager and executive to develop a customised loan proposal for your strata property.
General meeting by Strata Manager
When the proposal is approved by the executive, we’ll prepare a package for your strata manager to call a general meeting.
We'll provide the funds
When the loan contract is approved at the general meeting, we’ll provide the funds to your body corporate as required to fund your approved project.
Draw funds as needed
You can draw down on the loan as needed and only pay interest on the actual funds drawn.
Repayments
Your strata manager will incorporate the loan repayments into your budget and owners’ quarterly levies for easy management.
Project management
If desired, we’ll assist with project management by liaising with your builders.
Our team
Rick Miller
Project Manager of ArmadilloRick has over 28 years' experience in the construction and operation of commercial and residential strata buildings since 1992. A licenced builder since 1991, Rick has project managed over 20 residential unit projects, won two NSW MBA awards and has owned and operated a commercial office building in North Sydney for 25 years.
As a licenced project manager, Rick has the ability to supervise whatever building works or other funding Armadello Finance has provided funds for.
Neil Scott
Legal and Corporate AdvisorNeil has more than 40 years' experience in commercial and corporate law and has worked for almost a decade as a corporate advisor. Neil specialises in commercial property, from day-to-day legal issues to major transactions involving capitals raisings, acquisitions or divestments of companies and business assets. He has a particular interest in strata title and has acted for both strata corporations and developers.
Neil has worked with global corporations on some on the largest transactions ever executed in Australia. But he is passionate about supporting SMEs and has spent the last 20 years helping business owners achieve their personal and professional goals. Neil prides himself on taking the time to understand a business and offering more than just clinical legal advice. Before moving into law, Neil worked as a political advisor in New Zealand. He holds a Bachelor of Laws and a Bachelor of Arts (Political Science), both with honours.
Chris Chapman
Financial advisorChris Chapman is a chartered accountant with more than 25 years’ experience. He has worked extensively in the real estate and financial sectors, advising strata managers, owners and property developers. He also has experience auditing large financial companies and strata plans.
Chris worked for several accounting firms before establishing his own practice five years ago. He works mostly with SMEs and enjoys guiding his clients’ businesses as they grow and develop into successful, sustainable companies. Chris holds a Bachelor of Business (Accounting). He is a member of Chartered Accountants Australia & New Zealand and is a registered tax agent.
FAQs
What is Strata finance
A body corporate can apply for strata finance (a loan) to pay for the strata community’s projects or responsibilities, such as building maintenance or renovations, fire orders, a green project, insurance or legal costs.
What are the advantages of strata finance?
- A strata loan helps owners meet their legal responsibilities and maximise their safety, enjoyment of the property, and rent or re-sale values, without disrupting their cash-flow or waiting to accumulate sufficient funds.
- Strata finance is a cost-effective and flexible alternative to using your body corporate’s capital works fund (a.k.a. sinking fund) or raising a special levy from property owners to pay for the project.
How do we apply for a strata loan?
First, contact us to discuss your body corporate’s funding needs and circumstances and we’ll develop a customised loan proposal. Once the proposal is approved by all property owners, we can start the loan application.
Your body corporate must provide the following documents:
- completed Application Form or Acknowledgement of Intent to Proceed
- copy of the quotation or agreement showing the cost of the proposed works/service for which the loan is needed
- financial statements for the last 2 years, including details of levies
- list of members of the body corporate and aged levy debtors
The following may also be required:
- Annual General Meeting minutes showing resolutions passed to (i) undertake works / purchase services, (ii) accept the terms of the loan and (iii) increase levies to cover loan repayments
- Notice of Resolutions executed under common seal
- confirmation of the appointment of a project manager or quantity surveyor to oversee the works
- for loans over $1M, certificates of currency or other evidence of building and other insurances, including public liability.
How much can we borrow?
Minimum loan amount is $100,000. Maximum is negotiable, but generally $1,000,000.
How do we access the funds?
When the body corporate submits an invoice or progress claim with a completed Draw-down Notice (to be supplied), Armadello will pay the builder or other service provider directly.
What on-going responsibilities are there?
The body corporate is responsible for:
- continued management of the strata scheme by a professional, accredited strata manager
- providing Armadello with copies of annual financial statements and aged levy debtors reports
- when each draw-down on loan funds is made, providing Armadello with a report from the quantity surveyor or project manager (if one is required) regarding the related works.
What are the costs when establishing a strata loan?
Unlike most lenders, Armadello does not charge a loan commitment fee or establishment fee, but only requires reimbursement for out-of-pocket expenses (e.g. legal fees and bank charges) and will provide a quote for these. You can pay out the loan at any time with no penalty except in a fixed-rate period.
What if I sell my property before the loan is repaid?
You are only responsible for paying levies (including loan repayments) until the date of sale. After that, the new owner will take over responsibility for all levies.
Will a strata loan affect my mortgage or property value?
As a strata loan is unsecured, it does not impact property owners’ mortgages. The loan is a liability of the body corporate. Potential buyers should consider the financial obligation but remember that the cost of the loan should be exceeded by the increase in property value created by the funded works.
Contact us
Representative of Australian Credit Licence 393845
Credit Representative Number 517214
ABN: 15 167 514 329
- 2024 Armadello