- QMParticipant@qmJoin Date: 2009Post Count: 76
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.Mick CParticipant@shapeJoin Date: 2010Post Count: 1,099thecrestParticipant@thecrestJoin Date: 2004Post Count: 992
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.
Rhys AdamsParticipant@rhysadamsJoin Date: 2014Post Count: 14
- This reply was modified 5 years, 11 months ago by thecrest.
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.
RhysDavidsokterParticipant@davidsokterJoin Date: 2015Post 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.Andrew PittParticipant@andrewpittJoin Date: 2015Post Count: 21
limited upside with strata
Enhancing Commercial Property to Empower BusinessfxdaemonParticipant@fxdaemonJoin Date: 2013Post Count: 114
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?