Could someone please explain the difference between strata titles and torrens titles and the implications of these to us as investors?
pr
Torrens title is a system of registration of title where you get your title by registration, that is with extremely rare exceptions if you are a bona fide purchaser for value without notice of any defect in the Vendor’s title you can buy relying on the information in the register without needing to check every transaction that occurred in the past to satisfy yourself that the Vendor has a good title
Strata title is still torrens title but a form of title where there is subdivision of air space, so you own a certain cubic area with rights to common access on the common property.
I would never ever buy another Strata Unit. Look under “Strata” etc in the Search engine provided on this site.
You’re always better off buying a Torrens Titled property because at least your in control of your own destiny. With Strata Titled properties you’re not only trusting your Property Manager to look after your investment (if you choose to employ one) but more often than not you’re usually also under the control of a Strata Manager (even though you own the property). I wouldn’t advise my worst enemy to buy a Strata Unit unless of course you’re looking to kill him/her off very quickly with worry. Also, once the Property Manager and Strata Manager both get together then – guess who’s going to miss out. All of a sudden you’re up for big $$$$$$$$$$$$$ because the the Property Manager supports the Strata Manager who in turn gets a cut out of any maintenance that may (or may not) need to be done around the unit complex I’m also not talking about maintenace to your unit here – I’m also talking about maintenance to everyone elses unit, including the whimms of the Presiding Officer who gets it into their head that they want to paint all the units another colour so that it suits the inside colours of her/his unit. Sounds silly doesn’t it – but it does go on. Trust me. And while this is all going on – the Strata Managers just sit back laughing and thinking about how they can increase the price of the painting project to get a higher cut. (I know – why not select all the contractors yourself. Then you could get a higher kick back. No, better still – why don’t I get a kick-back from both the Corporation and the Contractor)
If a Strata Unit is going cheap. Be afraid. Be very afraid.
Moolah
On the otherhand…
I bought a strata title storage unit that came with a lease and management and all the rest. It returns about 6% net and runs with zero input from me. Each month $50 gets put in my account ($9,000 unit) and that’s that.
So I think it depends on what you are looking at. But in general I agree with Moolah, get as much control as possible over your property as you are the only one with your own best interest at heart
Thanks crj for your clear explanation of torrens and strata titles. I now understand.
Also, thanks moolah and surreyhughes for the benefit of your experiences as well as practical advice. Moolah I get the impression that you’re not too impressed with strata titles [biggrin].
But your points about control are most helpful thank you.
pr
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