Hi, I'm looking at purchasing a block of units under a single title in regional NSW. I plan is to strata title the block and renovate then sell them individually.
Should there be an order of execution that I'm looking at – specifically – is there any way to guarantee no problem with the strata titling prior to purchasing? What are th things that I should consider adding to the contract – subject to valuation for instance?
This method is very new to me, so any help will be greatly appreciated!!!
How many in the block ?
Richard Taylor | Australia's leading private lender
Actually, what I said isn't quite right – sorry! There are 3 blocks, but on 2 titles. One title has 2 separate buildings and 5 units (one with 3 and the one with 2), the other title has one building and 4 units.
All single storey.
akirk wrote:Should there be an order of execution that I'm looking at – specifically – is there any way to guarantee no problem with the strata titling prior to purchasing?Yes – (well almost). You will need to engage your consultants including a surveyor, town planner, solicitor, BCA consultant to undertake a full due diligence on the building, corral the full scope of works for all necessary BCA compliance (eg firedoors, fire/noise separation of units/stacks etc, glazing compliance, smoke alarms/thermals as required, FHR/hydrant systems….). There is no way of being able to guarantee that there won't be issues however your consultants should be able to pull the project together.
akirk wrote:What are th things that I should consider adding to the contract – subject to valuation for instance?You'd best be served by taking out an option to buy (with little money down) but sufficient time to undertake due diligence and achieve the DA/CC for the work. You will not get new titles until the work has been completed to council's satisfaction and you have lodged you DA for strata.
Bear in mind in a block that size you will be looking at Commercial financing so with it comes the costs and higher interest rates. Not the end of the world i guess for a short period but bear in mind it will impact you bottow line.
Course also means you need to front up a bigger deposit.
Richard Taylor | Australia's leading private lender
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