Forums / Property Investing / Creative Investing / SOLUTION TO THE OLD “STRATA PROBLEM”

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

    I thought I’d include my topic “STRATA BACK TO TORRENS TITLE ?????” (included under the “Help Needed” heading) under this heading as well.

    It seems to me to be a “creative” solution to the age old problem that many people suffer from under the current system of Strata Title ownership (even though I do say so – myself!).

    My topic read as follows –

    Most people are aware of the pitfalls involved in owning a Strata Title unit. Whether you’re an Owner/Investor, Owner/Occupier or even a Tenant – there are many problems associated with this current form of ownership. Things just don’t seem to run smoothly in these developments and can quite often go pear shaped very quickly. Whatever anyone tells you – Strata Title units are often more trouble than what they’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 you’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 pro’s but like everything there are also con’s (and I’m not just talking about STRATA MANAGERS here – Ha Ha!).

    Some of the disadvantages are as follows –

    (1) Unit would require direct road access.
    (2) Couldn’t have any units above or below – 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 “at the end of the day” 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 I’ll need to crunch a lot of figures on this subject but (correct me if I’m wrong) it almost seems as though when you see a Strata Title unit for sale in the paper for say $300,000 – exactly the same unit is about 50% more expensive if it’s a Torrens Title property. Also, It seems to magically go from being a mere “unit” to being a “town home” or some such other exclusive sounding name, in the process.

    Please correct me if you consider that any of my assumptions are incorrect. I’d also like to hear your comments especially if anyone has actually done this.

    Regards – Moolah

    THE SOLUTION IS SIMPLE – JUST DON’T PLAY ALONG WITH THINGS THAT YOU DON’T THINK ARE RIGHT!

    Profile photo of cadill69cadill69
    Participant
    @cadill69
    Join Date: 2005
    Post Count: 5

    Please correct me if you consider that any of my assumptions are incorrect. I’d also like to hear your comments especially if anyone has actually done this.[/blue]

    Regards – Moolah

    I believe you would need to have 100% vote from the other strata owners to make a change to your strata plan.

    Cad

    Profile photo of nordicskiernordicskier
    Member
    @nordicskier
    Join Date: 2004
    Post Count: 85

    Please consult with your Council’s Town Planner and Building Surveyor beofre doing anything. Don’t head down the dev application track without arranging a meeting with these guys first. Then send in a simple letter to the Council’s Town Planner seeking Council support in principle. They will still need to do a full assessment against the respective planning regs but it would be highly unlikey that they would renege on their written reply. Their reply should also point you in the direction of the next hurdle and for no charge!

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

    Thanks “nordicskier” and “cadill69” for your comments

    Regards – Moolah

    Profile photo of xyzzyxyzzy
    Participant
    @xyzzy
    Join Date: 2003
    Post Count: 178

    You may run into problems with minimum allotment sizes in the council’s planning rules

    Profile photo of MarcoMarco
    Participant
    @marco123
    Join Date: 2016
    Post Count: 2

    Well, more than a few years on now… What happened?

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