在澳大利亚 The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m
I have been looking around for a unit and have found a few company title units and was wondering...
If you had to choose between Strata and Company title - assuming that both units were identical - the company title unit was say 10% cheaper. Which would you choose ? and Why ?
And on the same subject
Has anyone ever bought a Company title unit and had it converted to Strata ? If so please tell...
I'd personally avoid Company Title.... do a search on the topic, and hopefully you dig up some old posts.
Still learning this whole computer thing - I did a serch and couldn't find those links. Thanks Y-Man. Don't like that point where you have to get approval from the company to get a mortgage. Will cross those ones off the list - A friend who is also looking emailed me this property - appears the agent is very happy about the whole company title thing to
Property ID 104392691
lindy0123 said: ↑
Still learning this whole computer thing - I did a serch and couldn't find those links.Click to expand...I cheated Went to Google and went to "advaned search" and set search domain to "somersoft.com"
This is what I found from another thread I was reading...
It helped clear a few things up for me.
GoAnna! said: ↑
With Company Title unit owners are actually shareholders in a private company. Buying a certain number of shares entitles the shareholder to exclusive possession of a particular unit and a car space.
The shareholders in the company vote to decide company rules governing occupation, including rights to lease, sell or transfer shareholdings.
Warning! You normally have to have the company's approval to alter the occupancy of a Company Title unit and Lending institutions are more reluctant to lend for this sort of property.
Strata Title is the most common title in unit ownership. Briefly, strata acts in each state make possible the subdivision of the airspace above the surface of the land, a Certificate of Title to part or parts of a building. This enables the purchaser to buy the actual space enclosed by the unit and then deal with the unit as a normal owner of property.
The individual owners in a block of Strata Title units must form an owners’ corporation which controls the general administration and any funding of common property. An executive committee of the owners’ corporation is elected annually from the current unit owners. The owners’ corporation has the duty to establish two funds - an Administrative and a Sinking Fund - made up of the owners’ contributions.
As a unit owner you must contribute towards the costs associated with common areas e.g. lighting of entrances and hallways, gardening, maintenance, etc. Your costs will increase considerably if your units house facilities such as lifts, swimming pools and saunas.
A prospective buyer should read the standard by-laws and any alterations and additions that may have been made by the owners’ corporation (i.e. keeping pets).
Getting information from the owners’ corporation records
It is important that you inspect the books and records of the owners’ corporation before buying. Sometimes your solicitor will arrange this for you. There are companies that specialise in inspecting the books and they know what to look for.
If you are a buyer you can ask the owner to give you written permission to write to the Secretary of the owners’ corporation and ask the Secretary to let you look at the records. The owners’ corporation must let you look at all the records and should make arrangements with you to do this for a fee.
The inspection will show the history of maintenance on the building and provide an insight into complaints lodged by other owners. More importantly it may show plans for future spending.
You can also gain access to the owners’ corporation records in NSW by using a Section 109 certificate. Other states have different names for these certificates.
Normally these certificates will give information about the strata scheme including:
The names and addresses of the Executive members and the managing agent (if there is one)
Levies paid by the owners
Any outstanding levies
The address where you can view the records and financial statements
Any special by-laws made by the owners’ corporation in the past 2 years.
If a levy is outstanding before the certificate is given and it is not shown on the certificate, you are not responsible for the payment. Make sure you keep your documentation.Click to expand...
Quick question for everyone...
What would make you seriously consider a company titled unit?
Would a 7% yield and discussions already taking place to convert to Strata (but no guarantee) push you to make a purchase like this?
It would have to be seriously under market and I would need to be 100% confident that it would convert to strata in the very near future.
Bumped this one nicely
Should i really avoid company titles that much? Speaking to the agent, he told me it worked a little different, but other than that mentioned it was pretty much the same as a strata.
Other than the reasons listed, are there any other major reasons to stay away from it?
Forgot to metion that it should yield about 6.5%, an optional $3-5000 can be spent to help raise the rent to above 6.5% yield.
Also, 300m to a university, bus stop out the front, 8km from cbd (eastern suburbs), and it looks another in the group is asking for about $40K more, when the only difference is a slightly bigger kitchen.
In NSW the cons to company title investing were:
a. obtaining finance
b. needing approval to buy or rent from the board
To convert to strata would need the approval of the memebers of the company and you would probably need to comply with current fre regulations
IFBB said: ↑
Should i really avoid company titles that much? Speaking to the agent, he told me it worked a little different, but other than that mentioned it was pretty much the same as a strata.Click to expand...You shouldn't take your advice from the agent. They don't represent you and do not have your interests at heart. They're rarely qualified or licenced to give legal, financial or lending advice at all.
Many lenders won't lend against company titles at all. Of the few that will, borrowing more than 80% is rare. If lenders are reluctant to lend against a property, perhaps you should be reluctant to purchase it?
Reason im looking into it is that it should rent in a second to students, and is priced VERY well ($149K in eastern suburbs Adelaide).
Will have to take more time and read more into it. The agents "loan guy" has tried to contact me already, so they are either extremely prompt with their replies after the open, or are very desperate to sell
... Maybe ill throw a stupid low offer in and see how it goes.