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."
Hi
Basic overview.
Older properties were not strata titled but were owned by owners corporations, a company that owned the whole property.
To be able to live in an actual lot you buy shares in the company, not the actual lot.
D
RPI | Certus Legal Group / PRO Town Planners
http://www.certuslegal.com.au
Email Me | Phone MeProperty Lawyer & Town Planner
There is aparently a newish building in Sydney which was set up as Company title with one of the reasons being that a shareholder cannot just sell to anyone. Any new purchaser must be approved by a committee of other shareholders. This way they can control who buys into the buidling.
In NSW there would be stamp duty on the transfer. However, stamp duty is due to be abolished on the transfer of shares in private companys from July 1 this year (may not happen).
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Couple of similar building here in Qld Terry and the odd one or two with covenants like no one under the age of 18 allowed to reside.
If you are in your 50's and the Mrs falls pregnant you are forced to move out !!!! (Or should i say the misses is forced to move out).
Times we live in.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes Company share apartments can have restrictions in the company rules such as you may not be able to rent the property out. Or have pets.
It has also been my experience that very few banks will lend on company share and when you do it might only be 60 or 70%. However I have not looked at company share so the rules may have changed. Both Richard and Terry would have a better idea than me.
The thing to consider is this. Often Company share can appear to be good value for money, however that will also mean that capital growth may be restricted. It is important to remember that capital growth is based on demand and supply. So if one person in three is put off because of the company share then it may restrict capital growth.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
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Good point Nigel.
Every property you purchase as an investor / owner occupier you need to remember one day you may want to sell it and need to ensure that potential buyers can finance it.
No point buying a property where you might need 35% deposit (which of course you may have) when future buyers may not and this could delay your sale process.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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