Hi all,
I was looking at purchasing an apartment in Melbourne which has 10 on the block. The apartment block was built in the 60's-70's. When looking at the section 32 I realized that it is owned by a company and not strata titled like many other apartments so basically I would be buying into a 10% share of the company for this IP. Ive never come across this before but from what my conveyancer has said is that this is how they used to do some of the inner city apartment blocks many many years ago. Just wondering if anyone can advise what the difference is between this and a normal strata titled apartment block? Any advantages/disadvantages?
Thanks in advance for your input.
Disadvantages include the difficulty in getting finance and resale.
I also think, depending on the company constitution, other shareholders may have to approve the person buying in.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks Terry. What sort of finance difficulties? Is it just the 80% max LVR or something else?
Any other disadvantages that anyone else knows of?
For a Company Title you may get 80% lvr but more likely 70-80%.
Not every lenders cup of tea.
Richard Taylor | Australia's leading private lender
Any reason why this is the case? Is it classified as "higher risk"?
All boils down to resale opportunity for either the vendor or the lender.
Richard Taylor | Australia's leading private lender
Thanks guys.
With the roof falling in on the housing market, there is obvious merit in avoiding any company that relies on residential property for much of its income. Consequently, investors are giving little PSG Solutions, involved in property searches and the hated housing information packs (HIPs), a wide berth.
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Although many shares are historically cheap, offering some pretty safe dividend yields that put high-street savings accounts to shame, share buyers must be selective. There are bargains around – but the trouble is that they may represent an even more tantalising proposition tomorrow. Still, for the patient and careful stock-picker buying for the longer term, these nervous days offer a unique opportunity to enhance their portfolio. The No Pain, No Gain portfolio intends to remain active. It recently alighted on two shares and I am contemplating further additions.
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Miami Real Estate | Miami Beach Condoslopetha wrote:Hi all,I was looking at purchasing an apartment in Melbourne which has 10 on the block. The apartment block was built in the 60's-70's. When looking at the section 32 I realized that it is owned by a company and not strata titled like many other apartments so basically I would be buying into a 10% share of the company for this IP. Ive never come across this before but from what my conveyancer has said is that this is how they used to do some of the inner city apartment blocks many many years ago. Just wondering if anyone can advise what the difference is between this and a normal strata titled apartment block? Any advantages/disadvantages?
Thanks in advance for your input.
If an heir of 6 is purchasing the property from the other 5 heirs and each is to get a percentage from the sale does the heir that is buying the property still gets his or her share….?
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