Forums / Property Investing / Commercial Property / Buying a Commercial Property -Strata Title

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  • Profile photo of QMQM
    Participant
    @qm
    Join Date: 2009
    Post Count: 76

    Hi,

    I’m looking at buying a commercial property and it’s Strata Titled. What are the pitfalls? Is there anything I should be aware of?
    Many Thanks.

    Profile photo of Mick CMick C
    Participant
    @shape
    Join Date: 2010
    Post Count: 1,099

    Need more info….A bit vague

    Mick C | Shape Home Loans
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    Same Banks. Better Rates. Served With a Passion.

    Profile photo of thecrestthecrest
    Participant
    @thecrest
    Join Date: 2004
    Post Count: 992

    Hi QM.
    What kind of businesses are in the strata plan ?
    How many? Who manages it? Who controls it ? What state of Australia ?
    This was posted a few months ago QM, are you still interested or has this opportunity ceased for you ?
    I’ve had experience owning a commercial property in a strata plan which I’d be happy to add here if you were interested.
    Cheers
    thecrest

    • This reply was modified 5 years, 4 months ago by Profile photo of thecrest thecrest.

    thecrest | Tony Neale - Statewide Motel Brokers
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    selling motels in NSW

    Profile photo of Rhys AdamsRhys Adams
    Participant
    @rhysadams
    Join Date: 2014
    Post Count: 14

    Hi QM

    Is the property for investment or occupation?

    If its for investment the lease covenants would be the most critical aspect? ie strength of tenant, what security is in place, remaining lease term before expiry, who pays outgoings? And almost forgot, how much rent are the obliged to pay?

    The above aspects, inparticulary rent and lease term will also be important for debt funding. Commercial property lending isn’t like residential property in that a lender will like/need to see sufficient remaining lease term beyond the loan term.

    Cheers
    Rhys

    Rhys Adams
    http://www.redcommercial.com.au/
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    Commercial Property and Construction Finance Specialist

    Profile photo of DavidsokterDavidsokter
    Participant
    @davidsokter
    Join Date: 2015
    Post Count: 3

    I am totally agree with above statement If its for investment the lease covenants would be the most critical aspect? ie strength of tenant, what security is in place, remaining lease term before expiry, who pays outgoings?
    However you need to think about it again.

    Profile photo of Andrew PittAndrew Pitt
    Participant
    @andrewpitt
    Join Date: 2015
    Post Count: 21

    limited upside with strata

    Andrew Pitt

    Enhancing Commercial Property to Empower Business

    Profile photo of fxdaemonfxdaemon
    Participant
    @fxdaemon
    Join Date: 2013
    Post Count: 114

    Hi Andrew,
    Will any of the following add more upside?

    1. further subdivide a large enough strata
    2. consolidate multiple adjoining smaller strata

    Is buying strata in general a poor investment choice?

    Thanks.
    FXD

    Profile photo of Motia GroupMotia Group
    Participant
    @motiagroup
    Join Date: 2015
    Post Count: 3

    Property, an Investment in Life

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