Most people are aware of the pitfalls involved in owning a Strata Title unit. Whether youâ€™re an Owner/Investor, Owner/Occupier or even a Tenant – there are many problems associated with this current form of ownership. Things just donâ€™t seem to run smoothly in these developments and can quite often go pear shaped very quickly. Whatever anyone tells you â€“ Strata Title units are often more trouble than what theyâ€™re worth. Some things which can (and often do) go wrong are – being held to ransom by UNRULY STRATA MANAGERS, conflicts between the different types of owners and tenants regarding maintenance issues, meetings, sinking funds, inordinately high quarterly rates, car parking arrangements, noise, what colour wig youâ€™re wearing (just joking) etc etc etc. The list goes on and on!
The reason why I decided to post this article was to ask whether anyone has ever gone down the road of peeling their Strata Title unit off the main title and converting their own portion of land back into a Torrens Title? In doing this there are many obvious proâ€™s but like everything there are also conâ€™s (and Iâ€™m not just talking about STRATA MANAGERS here â€“ Ha Ha!).
Some of the disadvantages are as follows â€“
(1) Unit would require direct road access.
(2) Couldnâ€™t have any units above or below â€“ for obvious reasons.
(3) Expenses involved in employing contractors to disconnect and reconnect separate services e.g. gas, water, electricity, sewerage, storm water.
(4) Expenses involved in modifying existing carport to accommodate new requirements or building completely new vehicular facilities.
(5) Expenses in setting up new title e.g. Surveyors, Solicitors, Development Application etc.
(6) Having to get a unanimous decision from all the other owners to peel away from the group.
I am in a situation where the foregoing requirements are probably achievable but what I need to know is whether â€œat the end of the dayâ€ it would be worth doing. My unit is situated in a prime, near city location but the preceding expenses may outweigh any future gains made. I know that Iâ€™ll need to crunch a lot of figures on this subject but (correct me if Iâ€™m wrong) it almost seems as though when you see a Strata Title unit for sale in the paper for say $300,000 â€“ exactly the same unit is about 50% more expensive if itâ€™s a Torrens Title property. Also, It seems to magically go from being a mere â€œunitâ€ to being a â€œtown homeâ€ or some such other exclusive sounding name, in the process.
Please correct me if you consider that any of my assumptions are incorrect. Iâ€™d also like to hear your comments especially if anyone has actually done this.
Regards – MoolahcrjParticipant@crjJoin Date: 2004Post Count: 618
I helped someone do this in nSW over 10 years ago. Costs weren’t that high. Suggest you speak to your Council first and see if it is possible eg land area might be less than minimum allowed
Thanks “crj” for your response.
Land area isn’t a problem because I’d have 328 sqm in my proposal which is a huge area for a unit.
Also, do you have anymore info because you sound like just the sort of person who I should be communicating with.
What type of work do you do?
Regards – MoolahbrahmsParticipant@brahmsJoin Date: 2004Post Count: 485
moolah, what sort of property is it?
Purveyor of Fine Finances
aka Mortgage Broker Brisbane
It’s a two storey, 3 bedroom, residential Strata Title townhouse in a group of 10 townhouses, built in 1974 and located about 4km out of the city (on the affluent side of town). Presently, it would be worth about $250,000 – $280,000.
Regards – Moolah