Most people are aware of the pitfalls involved in owning a Strata Title unit. Whether you’re an Owner/Investor, Owner/Occupier or even a Tenant – there are many problems associated with this current form of ownership. Things just don’t seem to run smoothly in these developments and can quite often go pear shaped very quickly. Whatever anyone tells you – Strata Title units are often more trouble than what they’re worth. Some things which can (and often do) go wrong are – being held to ransom by UNRULY STRATA MANAGERS, conflicts between the different types of owners and tenants regarding maintenance issues, meetings, sinking funds, inordinately high quarterly rates, car parking arrangements, noise, what colour wig you’re wearing (just joking) etc etc etc. The list goes on and on!
The reason why I decided to post this article was to ask whether anyone has ever gone down the road of peeling their Strata Title unit off the main title and converting their own portion of land back into a Torrens Title? In doing this there are many obvious pro’s but like everything there are also con’s (and I’m not just talking about STRATA MANAGERS here – Ha Ha!).
Some of the disadvantages are as follows –
(1) Unit would require direct road access.
(2) Couldn’t have any units above or below – for obvious reasons.
(3) Expenses involved in employing contractors to disconnect and reconnect separate services e.g. gas, water, electricity, sewerage, storm water.
(4) Expenses involved in modifying existing carport to accommodate new requirements or building completely new vehicular facilities.
(5) Expenses in setting up new title e.g. Surveyors, Solicitors, Development Application etc.
(6) Having to get a unanimous decision from all the other owners to peel away from the group.I am in a situation where the foregoing requirements are probably achievable but what I need to know is whether “at the end of the day†it would be worth doing. My unit is situated in a prime, near city location but the preceding expenses may outweigh any future gains made. I know that I’ll need to crunch a lot of figures on this subject but (correct me if I’m wrong) it almost seems as though when you see a Strata Title unit for sale in the paper for say $300,000 – exactly the same unit is about 50% more expensive if it’s a Torrens Title property. Also, It seems to magically go from being a mere “unit†to being a “town home†or some such other exclusive sounding name, in the process.
Please correct me if you consider that any of my assumptions are incorrect. I’d also like to hear your comments especially if anyone has actually done this.
Regards – Moolah
I helped someone do this in nSW over 10 years ago. Costs weren’t that high. Suggest you speak to your Council first and see if it is possible eg land area might be less than minimum allowed
Thanks “crj” for your response.
Land area isn’t a problem because I’d have 328 sqm in my proposal which is a huge area for a unit.
Also, do you have anymore info because you sound like just the sort of person who I should be communicating with.
What type of work do you do?
Regards – Moolah
moolah, what sort of property is it?
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker BrisbaneIt’s a two storey, 3 bedroom, residential Strata Title townhouse in a group of 10 townhouses, built in 1974 and located about 4km out of the city (on the affluent side of town). Presently, it would be worth about $250,000 – $280,000.
Regards – Moolah
There must be sum1 out there who has a bit of info, or comments to make about this. Were are U?
Regards – Moolah
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