Forums / Property Investing / Help Needed! / Strata Problems vs Good Investment ??

Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of moolahmoolah
    Member
    @moolah
    Join Date: 2005
    Post Count: 26

    In 1980, I bought a strata titled townhouse for myself to live in when I was a bachelor. If anyone has ever owned a strata titled townhouse, then I feel sorry for you. It’s like living in a commune. The only difference is that when you live in a strata titled townhouse everyone has the right to vote on “whatever needs to be done” in the complex. The words “whatever needs to be done” vary significantly with who is the current presiding officer, secretary, treasurer etc and whether they are an owner/occupier or owner/investor – if you know what I mean. Also, although everyone is meant to be equal in a strata corporation – some are definitely more equaler than others. This equation is also made more complex if you have the further missfortune of having a STRATA MANAGER control your affairs. I use the words “MANAGE” and “control” very, very loosely in this context because there is a common misconception out there that they actually “manage” and “control” corporations and an even better one is that if they’re allowed to get an extra cut out of maintenance contracts then they’ll actually “manage” and “control” things even better.

    NOT TRUE

    They apply the same ammount of effort to their job (i.e. making one phone call to a maintenance person) if their getting a kick-back or not. It’s even worse than that because there is a clear conflict of interest in this situation i.e. – Whose the client – the maintenance person (the one who gives the kick-back) or the corporation (the owners). Who is the strata manager going to support if the maintenance work isn’t satisfactorally carried? Which client?

    Needless to say – over many years, I’ve had many arguments with many people within our strata complex, to the point were I’ve been ostracized for expressing some common sense and tring to stick up for my rights.

    In any case (and moving along), I inherited some money when one of my relatives died and I’m left with a quandry. I’m now married and have moved into a new “torrens” titled house (the only way to go) but am wondering what I should do with the townhouse. Should I –

    (1) keep the townhouse, rent it out and refinance the property to buy more properties
    In doing this, I will have made good use of the money I spent on the costs associated with originally purchasing the property but still suffer the frustration of owning a strata titled townhouse. Also, there’s a common saying out there – NEVER SELL) OR
    (2) Sell it, and purchase only torrens titled properties
    The only problem with this option is that the townhouse is worth about $300,000 and is in a good suburb, only 5km away from the city.

    Please give me some advice on what I should do because at the moment I’m just treading water.

    Regards – moolah

    Profile photo of crjcrj
    Participant
    @crj
    Join Date: 2004
    Post Count: 618

    Since you bought the unit pre CGT, if you think there is still likely to be growth it can be tax free growth.

    If you have much debt on your new PPOR then selling the townhouse, paying off debt and borrowing using your new home as security for LOCs might have advantages.

    Profile photo of moolahmoolah
    Member
    @moolah
    Join Date: 2005
    Post Count: 26

    crj – I haven’t got any debt whatsoever on the new house or the townhouse because as I mentioned in my original posting but didn’t make very clear was that I received enough money from my inheritance to buy a new house – outright. Also, I had already paid off my mortgage on the townhouse many years ago.

    Anymore help would be greatly appreciated. Sometimes it’s like sitting in a vacuum if you can’t get any feedback on good strategies to follow.

    Thanks for any further help given.

    moolah

    Profile photo of alfamickalfamick
    Participant
    @alfamick
    Join Date: 2004
    Post Count: 41

    I agree with crj; the CGT implications are the big reason to keep it. It’s not costing you anything in interest, and any capital gains will be untaxed. But only you can weigh that up against your strata dramas!

    Mick

    Profile photo of moolahmoolah
    Member
    @moolah
    Join Date: 2005
    Post Count: 26

    Does anyone else have “Strata Dramas” – or am I the only one? From what i’ve seen going on in our Corporation, i’d be surprised if I were the only one in Australia experiencing problems.

    Like to hear from you regarding my original posting and Strata Dramas in general.

    moolah

    Profile photo of moolahmoolah
    Member
    @moolah
    Join Date: 2005
    Post Count: 26

    Has anyone else got any more advice before this string runs its course in time?

    Any more advice greatfully received

    Cheers moolah

    Profile photo of DerekDerek
    Member
    @derek
    Join Date: 2004
    Post Count: 3,544

    Sack your strata manager and look elsewhere.

    I have done such a thing – took a few phone calls around Oz but managed to secure the required number of signatures and now the complex is in much better shape for the change.

    Derek
    [email protected]
    0409 882 958
    Property investment advice and researched property in quality locations available.

    Profile photo of moolahmoolah
    Member
    @moolah
    Join Date: 2005
    Post Count: 26

    The trouble is after many years of this sort of thing you get pretty p….d off and frustrated.

    As I mentioned in my original posting –

    Needless to say – over many years, I’ve had many arguments with many people within our strata complex, to the point were I’ve been ostracized for expressing some common sense and tring to stick up for my rights.

    It’s very sad but presently the men with the black suits and bow ties are beating me with their slick b..l s..t. [angry2]

    Sad isn’t it?

    Chears moolah

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