Can anyone offer advise on purchasing a block of units on 1 title and strata titling them? What are the general costs involved and what obstacles (building age, council approvals, etc) could be expected. I'm making my own enquiries specific to my situation but would appreciate some advice and experiences from others.
Are they Brick or timber? Some of the earlier single level have Brick exterior but timber party walls and floors. These can be a problem to get fire rated.
Jon
Thanks Jon,
These units are brick. I've encountered the older style you identified and the cost of fire rating the building was going to be too big. I was advised that the beams and structure of the building had to be re-done to isolate each unit.
I'm after a rough estimate of costs that i can expect for 6 x 2 bedroom units with 10 garages and 3 common laundry's.
JasonJason, we're currently doing due dilligence on a possible deal of 8x 2br units. Fire will include hardwired smoke detectors to all units and interior brick walls need to go all the way up to roof. We've discovered section 94 fees will need to be paid on each unit, some $8k each, that's $64k on the deal we're looking at, plus the costs of surveyor, and other council fees. We could be looking at around $80-90k just to strata or around $10+k per unit.
Make sure you do all your due dilligence before committing.Mick
Thanks mick, big help. This option of strata titling a block has just been raised yesterday and we're doing all the sums on some accurate figures that will be compiled during our DD. I just thought (rightly so) that someone on the forum could give me a heads up and pass on some of their experiences. Thanks for sharing yours. Good luck with it.
How are you finding the time frames required for each of the things you've listed? Do you think that strata titling your block will contribute greatly to your holding costs. The cost of purchasing the block and some renos is above what we originally planned to spend so i would like to forecast as accurately as possible how long i'll be hanging onto the units before renting/selling them.
JasonI'd argue the toss about S94 contributions – the original developer probably paid their contribution for the creation of 10 units, your work is creating separation of title to each premises. The schedule of council fees should be on the council website, contact a surveyor to determine their costs including preparation of the strataplan, submission to lands dept (creation of all covenants/bylaws etc), any legal costs etc.
you've got one mate scotty. thanks
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