澳洲Australia property Help with Units In A Company Structure |


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Hi all,

I'm hoping to be able to get some further information regarding a unit we are looking at purchasing as our first investment property. The real estate agent has advised the block of units is set up as a company structure, where we purchase "shares" of the company. He said that as it's set up this way we don't have to pay stamp duty or settlement fees.

Can anyone advise if this is correct and are any disadvantages to buy this way?

Thanks in advance.  

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I have no idea regarding stamp duty and settlement fees..... it sounds more like a time share than a normal RE purchase?

We have company share structure apartments in Victoria, but from what I understand, they are mainly in place of the Body Corp.... I thought you still get the title etc.


The Y-man  

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This is simply a company title unit rather than a strata title unit.

Rather than me writing an essay on the topic, you can read about the Pros V Cons here: http://www.aussielegal.com.au/informationoutline~nocache~1~SubTopicDetailsID~797.htm

Also it is difficult to get a decent LVR loan for this type of title and some lenders don't want to lend on them at all.

I see a number of company title units being converted to strata title and you can definitely make money by doing that (if all the unit holders are agreed), although it will cost some money upfront to convert them.  

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Yep propertunity is right - it's the old company title. It existed before strata title was invented - basically a company owns the entire block of units - and each shareholder of the company is entitled to use each apartment.  

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carolineelle said: ↑
He said that as it's set up this way we don't have to pay stamp duty or settlement fees.

Can anyone advise if this is correct and are any disadvantages to buy this way?Click to expand...
This is definitely not the case and I'm pretty sure the real estate agent knows they're spinning bull$hit too. You will have to pay stamp duty as if it is a strata titled unit (unless there's some radically different rules in WA). I suspect they're trying to make the deal look better and get more money out of you.

You'll find that obtaining finance is a much more painful prospect for this type of property. Don't pay full price for it either. Company titled units are generally cheaper and as Proportunity suggests, there's money to be made by purchasing company title and converting to strata.  

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carolineelle said: ↑
Hi all,

The real estate agent has advised the block of units is set up as a company structure, where we purchase "shares" of the company. He said that as it's set up this way we don't have to pay stamp duty or settlement fees.

Can anyone advise if this is correct and are any disadvantages to buy this way?

Thanks in advance.Click to expand...
Tell them in a letter that you are relying on this stamp duty absence to make your purchase decision and that you are relying on their professional advice in this regard..

Get the agent to put this in writing on company letterhead and have it countersigned by the officer in effective control/Director of the agency.

When you get hit for land tax on the transfer of the land rich shares, you can sue them for that amount.

cheers

RightValue  

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