Strata Title Value

Viewing 9 posts - 1 through 9 (of 9 total)

bumi
Participant
@bumi
Join Date: 2007
Post Count: 1
July 25, 2007 - 5:28 am
Hi All,
With no experience in strata title properties (yet), is there sufficient 'value add' to a project by converting a block of units to strata title and reselling individually?
Appreciate feedback on pro's and con's of this approach.
Bumi
bpudadera
Participant
@bpudadera
Join Date: 2007
Post Count: 4
July 25, 2007 - 7:20 am
Id really love to hear what other people would have to say about this as my partner has just bought a 3x unit and currently undergoing strata to get each unit under its own title. Each unit cost $97K and estimated sell after just dividing is $135K. This is because each unit will have thier own land as well
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
July 25, 2007 - 8:28 am
Have probably done 45 blocks in Brisbane over the last 10 years everything from a 4 pack to a 24 pack of 1 bedroom units.
Currently have a block of 18 going through being 14 x 1 and 4 x 2 bedroom units.
There are several pluses the obvious one being profit but remember any substantial renovation means you will attract GST on the sale and currently in most areas the cost of the rar product is over priced and leaves little in for the purchaser.
Richard Taylor | Australia's leading private lender
CanberraClaire
Participant
@canberraclaire
Join Date: 2005
Post Count: 47
August 3, 2007 - 7:41 am
am also new to strata titling – is it done through local council?
have a block of 4 that looks good and will look great after some minor cosmetic stuff.
i'd love to know more about the process but feel overwhelmed with what's ahead. where is a good place to start/useful resources?
CanberraClaire | Capital Buyers Agency
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Pro investor
Participant
@pro-investor
Join Date: 2003
Post Count: 108
August 8, 2007 - 12:37 pm
Hi Qld007
Why will you be charged gst on the sale.
Thanks Rob
pinknic20
Member
@pinknic20
Join Date: 2007
Post Count: 52
August 12, 2007 - 4:14 am
sorry i am a little unsure my self why does a strata title add value? i am looking at buying 2x duplex with a partner is it wise to get it strata titled and what would you estimate the cost to be in QLD
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
August 16, 2007 - 7:11 am
Rob
GST is payable on the strata title of a block where you have done :substantial renovation".
Admitedly took a private ATO ruling to find that out but it is the case.
Richard Taylor | Australia's leading private lender
Jacqui Middleton
Participant
@jacm
Join Date: 2009
Post Count: 2,539
May 3, 2012 - 10:48 am
Hi Richard,
Did you happen to get to the bottom of the definition of "substantial renovation" ?
For instance, if you rip out the kitchen cupboards and oven and put new ones in, and same deal in the bathroom, repaint the walls, and put new floor tiles and carpet down, is that a substantial renovation ?
In other words, what is not a substantial renovation, which would therefore be gst exempt in the case of strata titling an old unit block and onselling them?
jac
Jacqui Middleton | Middleton Buyers Advocates
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thecrest
Participant
@thecrest
Join Date: 2004
Post Count: 992
May 6, 2012 - 2:43 am
Were there any recurring objections with Councils to changing the title to strata titling ?
What were the main challenges ?
Cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
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