G’day all,
just wondering about buying unit vs house vs townhouse vs apartment vs flat…
i understand that with a flat, i may not own any land value (may be minimal) because it is on a second or third etc. floor.
what about the other ones? what are the pros and cons?
thanks,
giladHi
In my experience flats come in two forms
1) Strata
2) SharesWith Strata you are allocated a parcel of space (strata plan layout), I guess technically it is’nt land but you are actually buying the building component, the land is generally “common grounds”
With Shares you are buying a share in the complex, similar to buying shares from the ASX.
I personnal don’t like the concept of shares.
Although a lot of people don’t like Strata (there are some horror stories out there), I do. The key is to do your research and ask people living in the block.
I’ve also heard of leases (mainly heard of this in England). This is where you purchase a 99 year lease on the property – I see no value in this.
Someone on the forum may be able to expand/correct this info if you need more.
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I prefer units in small blocks with strata or community title or townhouses with community or torrens title (decision is based on cash flow including maintenance and not on property type). Most lenders will lend against these types of titles. I wouldn’t touch company title as I can’t borrow against them easily.
What I look for in units is a block with mostly owner occupiers. This means the block will be looked after. Strata fees can be a killer, especially when they finally get around to some essential maintenance which has been let go because the group couldn’t agree. I have a unit in a block which will finally have the common areas painted this financial year some 6 years after it was first raised at the strata corporation AGM.
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