Hi Forumers
I was just curious how many of you have purchased whole blocks of units before? I haven’t seen many advertised on realestate.com.au, so I was thinking perhaps they are advertised elsewhere?
Also if you were to buy a whole block, would you need to set up a body corporate?Thanks everyone [
]Hi Kyl,
We have managed to purchase 2 blocks of units since about March last year. One is a block of 4, the other a block of 5.
The block of 4, we only got because we happened to be in the town looking at houses, and it was basically snapped up before it got listed, and the other block of 5, we found in July 03 on http://www.property.com.au – It had been for sale for about 2-3 weeks before we got it, with little interest. Just as we looked at it, the rest of Australia found them also!!
We don’t need a body corporate because we control all units.
Hope this helps,
Del [
]Body corporates are only required when there is more than one owner. If you own the entire block, there is no requirement for a body corporate.
Whole blocks tend to get advertised the same way most property does, but for obvious reasons they are targeted at investors. They are getting very rare these days. They either give good returns, or they have been strata titled and sold off one by one. The really good deals often don’t make it to the web either.
Whilst they often give better than average returns, I’ve noticed lately that often the asking price of a block is greater than the sum of its parts would be. That is that prices in a lot of areas have increased such that if you were to buy the block and sell of each unit, you wouldn’t get your money back. Rates and expenses may also be higher than what you’d expect so do your sums carefully. The 11-second rule is still useful, but don’t invest solely on that!
Another problem with blocks of untils is finance. Almost all lenders will only look at blocks with more than 3 units as a commercial risk. This means at least 30% deposit and often significantly higher rates.
My understanding is that if you buy a whole block of strata titled units you do need to set up a body corp, you can control it yourself but it still needs to be set up.. If it is a block of flats on one title then there is no body corp.
I find the property investment section of the major newspapers a good way to locate bloks of units/flats.
hope this helps
Jarrod
Jarrod Lane real EstateYou CAN get 80% finance though possibly you may need to go to more than one lender (and of course you can only do that if the proeprty is strata titled.
BTW, here is a tip.
You can apply for strata titling, and upon approval the council will endorse your linen plan.
There is however no need to lodge it until you desire to do so (many years later perhaps).
Thus the rates will likely be less that when the block is strata titled.
Also council may put many more conditions in the D.A. approval (for example fire protection or contributions etc) if you wait a long time before lodging the D.A. with council.
Warning : please check with your state’s Land Titles office to check whether what I said above holds good for that state.
Pisces133
i never forget what robert kiyosaki quotes.see the invisible, create your own asset.i love watching what the local developers do around town always creating. they seem to be on a different level like inside trading.creating units or commercial proprty u at least build it for cost price and can on sell from there.cheers
Thanks everyone! It is always interesting to see what the more experienced forumers think when I am just a “green” investor with a steep learning curve!
[]Kyl_37
We buy, refurbish and strata title blocks for a living in SE Qld and have never found a shortgage. If you need any specific questions answered please feel free to email me.
Cheers Richard
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http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
hi we bought a block of four units in innisfail 2 months ago 3×2 beds and 1×1 bed. we did have the option of setting up without strata titles if we wanted to but not all insurance companies will insure you .we managed to find one so it is a lot less hassle
Him
Another site to look at is Domain.com.au.
I am selling two blocks of units in Regional NSW and have advertised them there.Cheers,
Tegan
[][]look at Domain.com.au for Narrabri and Gunnedah. Trish is selling properties. i block of 8 units and i block of 4 units. Both are good returns. Narrabri is negotiable on price.
she need money for another project.Warm Regards
ChanDollars
[Keep going, you’re nearly reach the end of financial freedom]
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