I recently over heard that purchasing air space was possible? i have done a little researching, but thought to seek further advice. Anyone with any knowledge and experience would be great? where would i start?
to ask a stupid question: to what purpose? If you do not have any rights over the land how would you propose to put on any further development?
They call it STRATA TITLE
You cannot strata an area for future development – this can only be achieved through stratum subdivision.
thank you for the replies. Scott No Mates i would probably purchase the air rights to prevent further redevelopment on the title. how ever i would also like to use the rights to invest in Media, such as billboards etc.
Thanks
In Dolf de Roos' book "Commercial Property Investing" he talks about air space a bit- is this where the idea came from as he talks about using it to prevent future development on sites where the visibility of prominent billboards may be affected. Not sure how you would really go about it though, a lawyer who specialises in commercial property would probably be able to help. I would imagine that purchasing air rights for buildings in the CBD would be horrendously expensive though.
Cheers,
LukeI just watched Burlesque and buying air space to prevent views being build out was part of the plot – never heard of it before
Huh, Burlesque. Didn't like the movie.
As if someone would pay millions of dollars on the last minute, to save a theatre.
not really believable.lol at Andy – the whole movie was <moderator: delete language>, that was probably the most believable part
Lhaldoupis,
It can be done, and I know of "air space" that has been recently marketed for sale.
The principle, in it's simplest form, works like this:
Let's say you purchase a small shop on 200m2 of land (5m x 20m)
You seek and are granted town planning approval (DA or TPP) to build two dwellings above the shop, over two levels.
You could, at this point, subdivide in strata (as Scott suggested) and agree to sell the strata space to be developed as permitted.In practical terms it is difficult as the existing shop would almost certainly need to be vacated while the development was completed, however, it's still possible.
This sale then becomes a little more like an agreement between purchaser and vendor.
More commonly the TPP is granted, the development completed, titles issued and properties sold or leased.
A client of ours developed a old hotel into units, sold them off and kept rights to the air space above, which he later sold for a fairly large amount. In this case the body corporate agreement that went with each of the dwellings in the development expressly prohibited the owners from objectiong to development of the air space. I'd suggest it would have been very difficult to build the penthouses without such an agreemnent. So yes, it is possible, but potentially problematic.
Regards
AlistairChristianb,
Thanks for your reply, i have been actively researching into this. Your reply is very helpful. But what i find the most difficult is trying to find vendors selling the rights to the airspace. Would it only be available for sale at real estate agencies? or would it be easier to buy a property with plans to subdivide into strata?
Also Thanks Alistair for your input that helps a great deal aswell.Cheers
LhaldoupisThe asset type is not widely understood and so not readily available. Armed with a clear understanding, you could approach agents to in turn approach landlords on your behalf. However, as you have suggested, it may be "easier" to buy a property.
If you buy a property with plans to subdivide into strata you will, of course, pay a premium. Perhaps you should instead look for a property that is located in a position that will allow you to develop the space above and also get some signage space.
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