I am looking at a property comprising detached house and 3 detached 2-storey units at the rear. Units are 19 years old wheras house would be 50 years.
I understand that there is potential to stratatitle the property. Does any one have any practical advice on costs, Council requirements etc.
Also, depreciation of the units as they are after 1987 (i think) Can i deprereciate them but not the house? Would it be possible to subdivide the house separately and strata title the units even though there is a driveway servicing all 4 dwellings.
I realise i have raised a few issues here. It seems the property needs to be developed as the house would suit owner/nccupier or even a commercial tenant and the units would be more attractive if sold separaetly.
Any thoughts would be appreciated.Hi There
Wondering a few things
1. How big is the block of land?
2. If there are already four existing buildings, why are you subidiving? isnt it aready sub divided? Sorry it doesnt sound clear what you are wanting to do.
THanks
Hi Danhob
The local Council will be able to answer most of your questions, or maybe a surveyor familiar with the local requirements.
They will have minimum requirements for land size etc to determine whether you can subdivide the older house off. It isn’t necessarily a problem if they all share a driveway, as this can be addressed in a few different ways so that all parties concerned share the maintenance of the driveway, if ever required.
To strata title the units is not too difficult. A surveyor will draw up a strata plan showing the boundaries of each unit, and marking what common porperty there is. I suggest that you have as little common property as possible by attaching as much grounds to each unit as is practical. This goes to Council for approval and when finalised is then registered at Land Titles office or equivalent. That’s a short version. Council would be able to give you an idea of their costs, and a surveyor may charge a few thousand depending on the complexity – they would be able to give you an idea.
If you can’t subdivide the house off, it could be included in the strata title, but you need to consider that it may need more maintenance than the newer units so may need to have a higher unit entitlement which means the owner pays higher levies.
Once you have an idea of the cost/fees involved you can better determine whether the value of the units once strata titled is enough increase to warrant the work.
Regarding the depreciation, it doesn’t matter what titles they are on – it’s the age of the dwelling and fixtures and fittings. You may even find you can claim some depreciation on items in the older house, even if the building doesn’t qualify for capital allowance. A depreciation schedule will ensure you can claim everything you are entitled to.
Regards
Wake
I agree with Wake in regards to the strata subdivision. You may need to consider some visitor car parking spaces in the common property. Two should be enough, but your Council will have its own car parking space by land use provision requirements.
Also consider the practical access issues such as car manouevring on the common property and the movement of garbage wheelie bins. Also consider the provision of separate water supply meters and gas meters if applicable. This makes each tenant responsible for these services rather you as the body corporate owners.
A reputable strata management company could assist in the strata management set up.
If in NSW, the strata development application will also need a Statement of Environmental Effects. Three questions that must be answered in the SEE are:
1. What are the environmental impacts?
2. How have the impacts been identifiied?
3. What steps are taken to minimise the potential impacts?
These questions are required under
ENVIRONMENTAL PLANNING AND ASSESSMENT REGULATION 2000 – SCHEDULE 1
SCHEDULE 1 – Forms
(persuant to Clauses 50, 126 and 139 of the Regulation)
Part 1, 2 Documents to accompany development application, (4) at http://www.austlii.edu.au/au/legis/nsw/consol_reg/epaar2000480/sch1.htmlThese questions sometimes require a degree of imagination when there is really no impact to the environment, particularly for strata subdivision.
WARNING: If any part of the subject land is covered by Bushfire Prone land than the whole application becomes Integrated Development under section 91 of the Environmental Planning and Assessment Act 1979] (Ref: http://www.austlii.edu.au/au/legis/nsw/consol_act/epaaa1979389/s91.html) and requires a Bush Fire Safety Authority from the Rural Fire Service under section 100B of the Rural Fires Act. (Ref: http://www.austlii.edu.au/au/legis/nsw/consol_act/rfa1997138/s100b.html) That means a Bushfire Assessment Report (in accordance with reg 46 of the Rural Fires Regulation 2002 – http://www.austlii.edu.au/au/legis/nsw/consol_reg/rfr2002229/s46.html)will need to be forwarded with the DA along with an additional $250 cheque payable to the Rural Fire Service. Don’t even try fighting this one. It’s L.A.W. A bushfire assessment report can be undertaken by anyoje with familiarity with the Planning for Bushfire Protection 2000 requirements.
Thanks for the help. Council said similar re driveway and requirement to have minimum of 450m2 around the house.
Have owned a unit with unequal unit entitlements and found it was a bit unwieldy as the owner of largest unit was not paying at all.
This is much appreciated.Regards
Dan
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