I have seen a few ads saying ‘Change to strata and reap the rewards”
has anyone had any dealings with this? If so, what are the basic steps to apply for a set of units to transferred to strata tiltes, is it just an application to council?
Also, what can you expect by way of increase in the price of the units if they are now strata? is it like an increase of say 5%?
I didnt see this particular topic covered in Steve’s book, is there any where else I could learn more?[rolleyesanim]Hi Tracksand,
I’d start with the local council. Ask them what their thoughts are on the matter. It helps if you have a definite property in mind.
If you are going to strata title a block of units/flats, you will probably have to set up a body corporate (In Vic anyway) This can be complicated, but a good solicitor should be able to help you with this.
You could also consult a local land surveyor, they will have a fairly good idea of what the local council will or will not allow.
Good luck,
Sue [biggrin]“Be careful not to step on the flowers when you’re reaching for the stars”
You’d need to get them seperately metered – water and power, too. And there would be fire issues. I’m also curious to know what;s involved in this sort of exercise as I have a couple of blocks that might be suitable.
I imagine the best way to work out the value of the units when converted to strata title would be to look at comparable properties in the area.
ScottCertainly not a new idea on the block, developers have been at it for years – beware holding costs – deep pockets required – and keep an eye on small individual apartment sizes – you regularly see these older apartment blocks being totally refurbed at the same time, then onsold to investor/owner occupiers.
purchasing either incredibly well or having held property since 1990 will help..
cheers
brahms
Advantages are very relative.
In general banks will see a loan as commercial if the block has more than 3 units, so will lend you less on it or not at all.The cost of strata title a small 4 units block comes to around $10,000 in Queensland, not considering any building costs, like fire rating between the units. The comment that metering needs to be separate is correct, but in order to rent them they need to be separated anyway, so it’s assumed they are already.
If you ever need to sell, it is much easier to sell separately, but I’m not sure it warrants the cost. I am asking for an alternative quote, but I am not too taken with the idea.
On second thought, may be the price obtainable for the flats separately IS somehow higher than selling them all in one. Anyone has experience with this?May God prosper you always.[biggrin]
MarcI’ve done one unit block and bought my second recently. All the regular stuff is true – you need to buy well etc.
If the fire walls (bricks to the tiles) and separate meters are in place it’s not very hard – pay a surveyor and away you go. It used to add heaps of value (eg signle title blocks would be sold at a serious discount). In today’s market it’s less of a winner.
Finance advice is right – you’ll get 70% LVR on the buy (I did get 90% on my first block – but only 4 units).
My gut feel is that it’s easier than normal property development – the council want it to happen cos it increases the rates.
The budgeted price – of 10K is a good estimate, our first block cost us 6K but this one will probably cost a little more.
I think buying for good returns or just buying under general market value is the best strategy in property
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