Looking at apartments and saw this and have never seen before
Company Share Title / Purple Title"
COuld someone please explain what this exactly means?
Please note that this particular complex is a Company Share Title / Purple Title (not a strata title property)
"No stamp duty is payable, a potential saving of approximately $12,000 – $13,000 compared to purchasing a strata title property. The property is currently leased however vacant possession is offered at settlement. The seller will pay the special levies currently in place for upgrade works at the complex."
With a company title as opposed to a normal strata/torrens title, you don't actually hold any certificate of title to the real estate. You own a set number of shares or units within a "company" that owns the complete building, which gives you the right to occupy an area of the building (i.e. your apartment).
Due to the restrictions encountered with company titles, you may find it harder to onsell, realise less CG, and lenders are wary of lending to properties sold though company titles.
Cheers
Tom
Despite Tom's words of caution there are still many a lender that lends on Company Title without any interest rate loading.
Did one on Sydney a month or so back with a purchase price of 929K and 85% was obtained fairly easily.
Might not be be the cup of your Big 4 major but thankfully there are many other lenders out there.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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