澳洲Australia property Purple Title apartment Perth | Sydney

在澳大利亚


Amazing Investment - FROM $269,000

http://www.realestate.com.au/property-apartment-wa-innaloo-107437864

A rare find in this part of Innaloo. This fantastic two bedroom renovated apartment comes with reverse cycle air conditioning, renovated modern kitchen, family room, built in robes and a parking space.

Close to all amenities and a short drive to the beach, you can't lose with this one.

* Reverse cycle air conditioning
* Renovated kitchen
* Timber look flooring
* Family room
* Excellent location
* Short drive to Scarborough beach

Rented out at $300 a week. Lease about to finish up.

Apartment is a purple title  

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How many over55s will rent?

My guess these kinds of things are traps. My grandmother has to rent because she was silly enough to sell the family home to buy that camper van that sat in the backyard because they "couldn't leave the grandkids"......:rolleyes:

But a majority of over55s will, or their kids will in part or whole, buy themselves somewhere to live outright.  

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Lynchy said: ↑
Amazing InvestmentClick to expand...
At 5.5% gross yield, what is amazing about it ??

Please list all the outgoings so I can calculate the nett yield.

Please also detail the downsides of the Purple title.....how many shareholders are in the company, and what percentage of the company does this unit constitute ??


Lynchy - you have NOT done the required detailed work to entitle you to post this onto the Caveat Emptor section.

Your post reads very much like a lazy real estate ad. I imagine if you don't smarten up the analysis side of your post, the mods will simply delete it.  

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It's amazing because it's Perth and its resi and it's over 5%......  

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Sorry I actually thought this part of the forum was for realestate ads, my bad.

Anyone cant rent the apartment not just over 55's

It was more of a post asking for some ideas to get some more interest in the property. The "amazing investment" isnt due to the yield but due to the instant GC you can make by converting the apartment block from a purple title to a strata title. We are selling due to a move to London in the next 3 or so months and see this as something that will happen over the next 12 or so months.

The apartment block used to have 1 electricity bill each month and this was then divided between each apartment accoridng to the reading on the meter. This has now been changed and each apartment now has a seperate connection, moving 1 step closer to meeting the requirements for a Strata Title.

Other requirements are

2 additional parking bays, plenty of room for this but also requires removal of a large tree
Inspection of the block to ensure it meets current building guidelines
Smoke alarms and RCD's in each apartment
Convert the gas from bottled gas

It's not an expensive excercise with a quote of $5600 coming through for the additional 2 parking bays and repair of current driveway and parking asphalt. The problem is that there are 2 owner occupiers who are over 90 years old. With the pension currently not even covering day to day expenses they are very hesitant to spend anything  

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sorry - my presumption - most purple titles in WA = lease for life over55s.  

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Lynchy said: ↑
moving 1 step closer to meeting the requirements for a purple title.Click to expand...
I presume you meant strata title....you mentioned before it was already purple, or company title.



Lynchy said: ↑
The problem is that there are 2 owner occupiers who are over 90 years old. With the pension currently not even covering day to day expenses they are very hesitant to spend anythingClick to expand...
...and as you'd know, with company title, for absolutely anything to be done on the property, it must have the support of 100% of the shareholders. One 'stick in the mud' who refuses to agree, and she's ALL STOP.

That's why I asked how many shareholders are in the company.....you didn't answer.

That's also why Banks are extremely reluctant to lend on company title, as they cannot mortgage a title without everyone's approval. Old people who own their share holding outright won't allow Banks to do their normal "bend over and cop this" routine.

I'd strongly suggest you go through the pain of convincing / cajoling everyone who owns a portion of the company to upgrade the building (could be 100's of K to get it up to today's building standards...they are onerous) and then reap the capital gain yourself.

Good luck in Perth doing that at the moment, she's a buyers market and Sellers are copping a hiding at the moment.


I wouldn't be surprised after taking into account all of the headaches with getting old people to agree, then spend all the money to convert to strata, then subject yourself to the worst Seller's market in Perth in 15 years that you are actually heading out the back door.

On reflection - I'd be selling it off as "amazing" as well.


Just another question with the Lease expiring - do you have official written permission from the other owners to be able to lawfully lease it out ?? Most shareholders in purple titles insist on Owner Occupier only. When we looked at one as an investment way back in the dark ages, that was the sticking point for us. Having some old fogey dictating to us that we couldn't rent it out made it a NO GO. What's the status with that ??  

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Dazz said: ↑
I presume you meant strata title....you mentioned before it was already purple, or company title.Click to expand...
Sorry yes meant Strata Title





Dazz said: ↑
...and as you'd know, with company title, for absolutely anything to be done on the property, it must have the support of 100% of the shareholders. One 'stick in the mud' who refuses to agree, and she's ALL STOP.

That's why I asked how many shareholders are in the company.....you didn't answer.Click to expand...
There are 9 shareholders. 1 for each apartment except 1 apartment where there is 2

Dazz said: ↑
That's also why Banks are extremely reluctant to lend on company title, as they cannot mortgage a title without everyone's approval. Old people who own their share holding outright won't allow Banks to do their normal "bend over and cop this" routine..Click to expand...
Yeah we had that problem so paid $235,000 18 months ago in cash.

Dazz said: ↑
I'd strongly suggest you go through the pain of convincing / cajoling everyone who owns a portion of the company to upgrade the building (could be 100's of K to get it up to today's building standards...they are onerous) and then reap the capital gain yourself.Click to expand...
Everyone is keen on getting it done, however are very hesitant on outlaying the $5000 cash. We went to the effort of gathering examples of personal loans for $5000, what the weekly/monthly repayments would be and then what they would be once the complex has been changed to a Strata Title due to being able to transfer it to a home loan rate. Most of the owners are retiress who are happy just getting the $300 a week rent. They are in no rush to realise the $30,000 - $50,000 gain that they would get if the complex was changed to a strata title. Things are getting done but slowly. Being 23 and having $250,000 odd of cash tied up isnt something I am happy about.

I probably should have looked at the average age of the Occupants before I purchase but the potential Capital Gains blinded me.

We have had a structual survey and he highlighted only a couple of very small problems like smoke alarms and RCD's and 1 larger problem which is the concrete cancer where the balcony ballastrades are held into place. We have had a quote of $9000 to fix this.

We estimate that the cost to each apartment to get the complex changed to a strata title will be a maximum of $5000 this equates to $40,000 for the whole complex. This covers the extra car parks, pulling out of the large tree, the concrete cancer, the smoke alarms and RCD's, the splitting up of power connections (done last week), and the Strata application fee

Dazz said: ↑
Good luck in Perth doing that at the moment, she's a buyers market and Sellers are copping a hiding at the moment.Click to expand...
Agreed. Will be putting up another property for sale in the next 4 or so weeks. :eek:

Dazz said: ↑
I wouldn't be surprised after taking into account all of the headaches with getting old people to agree, then spend all the money to convert to strata, then subject yourself to the worst Seller's market in Perth in 15 years that you are actually heading out the back door.

On reflection - I'd be selling it off as "amazing" as well..Click to expand...
We purchased for $235,000 and really cant see it going for less than $300,000. 2 bedroom apartment in similar condiiton block on a main road sold for $315,000 2 weeks ago. I would be asking from $300,000 which should gather some interest as every other 2 bedroom apartment in Innaloo seems to be asking $320,000+.

Dazz said: ↑
Just another question with the Lease expiring - do you have official written permission from the other owners to be able to lawfully lease it out ?? Most shareholders in purple titles insist on Owner Occupier only. When we looked at one as an investment way back in the dark ages, that was the sticking point for us. Having some old fogey dictating to us that we couldn't rent it out made it a NO GO. What's the status with that ??Click to expand...
No we dont. There is a written agreement that must be signed by each purchaser that states they have no say in who rents out each apartment. We were renting to a home west tenenant.

Sorry about the grammar, poorly constructed sentences etc. Flat out at work today.  

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so purchase at 269000 (cash)

stamp duty 7657

strata fees 5000

total cost 281657 (not including ANY maintenance, council rates,settlement costs etc)

selling price - $300000

-agents fee 2.75% - $7500

profit - $10843 (again, this does not include any extra costs like advertising etc and so the figure would be lower)

ROI = 5843/281657 = 3.8%

sounds like a terrible investment to me


you'd make more money with your cash in the bank, at zero risk and no pain in the **** factor


dislcaimer - did it very quickly, some figures will surely be out

on a positive note, to have $250k at your age is a great achievement, well done  

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Do they still call it Purple Title in WA?


I have heard the term a lot recently from the in-laws (retiree's in a retirement village).

OR

“Freehold Share” or “Share” Title formerly known as “purple” title

from REIWA

What is a purple title?

PURPLE TITLE - TENANTS IN COMMON

The land is held as Tenants in Common, the shares being in the same number as the units. Separate title may be issued for each unit. Because of the "unity of possession" the land cannot be divided or partitioned. The sketch and lot number is for the whole of the land in the plan or diagram.

The Certificate of Title states the number of undivided shares contained and the sketch of the land used to be shaded purple - thus "purple title".Click to expand...
 

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Just an update.

City of Stirling as of Monday have changed the requirements for the strata conversion. Where previously they have said that we needed to add car parks, RCD's, convert the bottled gas etc they have now changed it to no requirements needed to be met.

Apartment will be taken off the market over the next few days :)  

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