Hi All
I am looking at purchasing a block of 4 villa type units in Coffs Harbour NSW which are currently on the one torrens title. I am looking at the pros and cons of strata titling these and selling them off separately as a future strategy (Timeframe unknown at this time). Can anyone help with what the costs involved would be ?
Any suggestions/thoughts appreciated
Kelvin J Brennan
Originally posted by kelbren:Hi All
I am looking at purchasing a block of 4 villa type units in Coffs Harbour NSW which are currently on the one torrens title. I am looking at the pros and cons of strata titling these and selling them off separately as a future strategy (Timeframe unknown at this time). Can anyone help with what the costs involved would be ?
Any suggestions/thoughts appreciated
Kelvin J Brennan
Hi,
I am in the preliminary stages of doing the same with two block I own in Queensland.
I have two quotes from two land surveyors, but the quotes are rather complicated including various unknown fees from council, unknown request form council, unknown cost of complying with those request.
The surveyors bill + estimated fees for 4 units in my case should go from 10 to 15k, and the bill for fireproofing between the units could be anything between 1000 to 5000.
Because of the location of your villas I think you will have a less muddy approach to it by a local surveyor and if they are separated, no adjacent walls, you should have no problem with fireproofing. A visit to the local council asking for directions would also be of help.In my case the expense will be well worth it since I can sell the units separately at some 50% higher price than if sold in block. You have to do your research to see if you gain in price or not.
The attraction of doing this just to please the bank who like them to be all strata titled so it makes it easier for them to sell in a fire sale if it comes to that…. shouldn’t be enough to prompt you to do it.
May God prosper you always.[biggrin]
MarcI just finished two lots of four.
My surveyor, John Bested Surveying in Adelaide cost me $1777 per site for his time and fees.
The rest was council and I have to say it was under $10,000. So each site cost me about $!2000 done and completed.
Open space is the killer at cloes to $3000 per additional site. For a four site you need to pay 3 times as you already have one title turning it into four.
I didn’t have to change anything in the units and townhouses I did.
Byronent
Adelaide SAThanks for the reply,
My main purpose is realise a financial gain, not to satisfy the bank.
Cheers
Kelvin J Brennan
What i would recommend is get the process sorted when you are ready and then registering it when you are more inclined to sell them.
Byronent
Adelaide SAKelvin
Over the last 7 years we have strata titled 47 blocks of units in Brisbane and sold the units off separately after renovating them. We still own 4 blocks as an income hold with a thought of wrapping them individually or renovating and reselling.
The costs in Coffs will differ from Brisbane but in real terms you will be up for:
1) Surveyors costs for undertaking the survey. An indication would be to allow say $500 / unit.
2) Council Fee for lodging the plan for sealing. This will vary but as an indication for Brisbane allow $3300.
3) If the property is mortgaged you financier will need to consent to this and will no doubt make a charge to cover their costs and the reregistration of the mortgage on the 4 separate titles.
4) The Dept of Lands will charge for lodging the sealed plan and providing you with 4 separate titles.
5) Legal fees & additional rates as the property rates are no longer calculated on a bulk assessment.
Other consideration would be the age of the property. In Brisbane any thing prior to the 74 Building Act does not require to comply with current building standard with regards to firerating etc. Certainly a cost saving.
All in all a prosperous exercise. Out of curiosity which part of Coffs?
Cheers Richard
richard at fhog.com.au
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
Hi Richard
Many thanks for the information. The units are in the Park Beach area of Coffs Harbour approximately 800 metres from the beach.
Cheers
Kelvin J Brennan
Byronent
So was the cost about $10,000 for all your units, is that right?
We are interested in Strata Titling 4 units, and selling 2 off and keeping 2 as +cf properties after renovations.collie
Yes Collie.
I can dig out the actual paper work if you like. Also if you are in Adelaide district, I can send you the surveyor details we used.
Byronent
Adelaide SAHi Kelvin,
In relation to the cost and the time frame to strata title the villas, I would contact some local professional strata managers who do this as one of their core services. They should be able to give you a clear idea of the cost, time to complete. Also clarify if there are any other issues you should be taking into consideration eg in Sydney there is a big focus on Fire Safety and alot of the older buildings are finding they are not compliant and are now having to budget anywhere from $10k upwards to comply etc… Hope this helps.
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