I bought a warehouse in Byron Bay in March last year. It was the back unit in a strata block with a western wall over-looking a reserve occupied by a very messy tenant who was giving the previous owner a very bad return. I persuaded him to take half the total space of 168 sq m and I would take the other. He pays almost the same rent which isn’t a bad return now. The commercial market is very good here with no shortage of tenants.
The building had some height (over 6 metres) So I went straight in with a builder friend and cut two sliders on the bottom, then put in a loft above that. I am temporarily living in the top and have been renovating below. Last week I struck a simple handshake agreement with a jeweller to occupy half the bottom of my side of the building for six months and I intend to renovate the other side within the next few weeks and then let that out commercially as well.
I’ve struck a few problems with the corporate body who reckon I should have had a DA and that the back wall of the building is “common property” and they should have been consulted to gain consent. The president is narky and has reported a few of the others and myself in the block for living in commercial premises which of course we all deny vociferously The work has all been done to code and the improvements look fantastic. It is my intention to apply for construction certificate soon.
I would like to ultimately renovate the other side of the building too. But I have a small business loan at 7.1 % which is a little onerous so I’m thinking of either splitting the title to gain some capital or re-financing. I’m wondering if anyone has any experience with splitting title or may be interested in co-operating or has any idea where I might go for a lower percentage loan.
Sounds like you could be making a headache for yourself. This was a little while ago now, but how did you go?
Strata and DA… Could be trouble, perhaps you made need a change the use, supply parking, fire rating etc, when your on the fringe of doing things incorrectly than it’s like walking a knife edge.
Selling unapproved building can be tough unless you find a like minded purchaser who is also willing to forego regulation.
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