Hi everyone, longtime no post. We're have just bought a duplex 3 + 2. Currently valued 295 with rental income of 410pw. Is it worth strata titling although we have no intention of selling, to increase our equity in the bank's eyes to 400? or does this bring problems of it's own? We wish to have extra equity to bounce off to buy the next IP. Advice?
Once you have subdivided you will be paying rates on 2 properties, may have (more of) a land tax liability etc.
You will need to do your own research in the area to confirm if the total value of sales for individual duplexes is greater than when similar properties (like yours) are sold in their entirety.
Thanks IP Freely, for the reply. Yes the 3 bed would bring 250 and the 2 bed around 150. So when one strata titles, one is actually subdividing? I don't know anything about it yet, just knew that a duplex could be strata'd. So the strata costs are under 1500 p/a, but from what you are saying, there's rates on top of that? I will ring the council and find out. Thanks!
Basically you are creating 2 lots hence 2 titles and 2 lots of rates etc. There may be some compliance issues as well such as providing separate water and sewer connections if these haven't already been installed.
Thanks for the heads up, will check it out.
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