Hi All…
I currently own a unit in a small block of 3 (Triplex??). I was wondering if I could get the other two owners to sell to me would I then be able to scrap the Body Corporate?
If I managed to buy one but the other unit holder held out on me then my body corporate payments would double I am assuming? Is body corporate necessary for 2 owners?
Has anyone here bought property that has not been listed for sale and have any tips or traps to avoid?
Cheers,
Nathan
I wouldn't have thought the body corp would be that expensive with only 3 units. Don't forget it covers insurance so you'd still have to pay that. What is the managing firm charging? That would be a saving. You'd have to look up the laws regarding self managing. But as they are strata'd you'd have 3 lots of rates etc.
Of course you could always de-strata the block after you took ownership of all units.
Would of course have to work out if the savings on Council rates makes up for the potential increase in Building insurance premiums.
As to whether a BC is required will depend on the State in which the property is held.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Watch out for the aggregation of stamp duty provisions too.
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
I wouldn't "de-strata" a block of 4…it would be a costly exercise + inflexible if you needed to sell + adjust to the market.
Given you have majority rule, you could choose you own strata manager OR self manage, but it will still be under a strata scheme ( insurance wise and council wise) – nothing wrong with self managing.
Regards
Michael
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Often I find that the expensive strata fees are mostly from high admin costs, and not sinking fund contributions, nobody takes an interest in who is managing and they pay whatever is put in front of them, so taking an interest is the first step in managing your fees. Would expect the costs should be reasonable for a block of three with no pool.
Thanks for the replies! The strata fee's aren't too bad… between $2000 and $3000 pa, considering it has a gross yield of nearly 10% I shouldn't really be complaining.
I guess I was just curious as to whether it is a stupid idea to go the opposite way to the norm of Buying a block of units, strata title them and sell or revalue to add instant equity.
Everyone has given me something to think about/look into anyway.
Cheers,
You must be logged in to reply to this topic. If you don't have an account, you can register here.
