I’ve found a block of 10 units for sale at $850,000, which could potentially be individually sold for +$120,000 each or rented out for +$220 per week.
Just wondering if anyone has had much experience with this strategy.
– What are the steps involved in Strata Titling?
– How long does the process normally take from start to finish?
– What would be the estimated cost to strata title 10 units?
– Are there any special consideration to take into account with this strategy?
DavidcrjParticipant@crjJoin Date: 2004Post Count: 618
Complying with fire regs. You will need fire separation between the flats including in the roof space. Suggest you get a competent building certifier to inspect and say what the regs require.
Thanks for your advice crj…
It could be very costly should fire separation need to be installed between each unit…BennyModerator@bennyJoin Date: 2002Post Count: 1,325
Just looking at the numbers, to me this looks like the ideal “buy and hold”. As such, there would be little to gain in strata titling. I haven’t done it myself, but had previously read it can take ~$20k to strata one unit.
Is that number correct? I don’t know – but, if it is, the values on your units don’t seem to justify such a large spend.
With the returns sounding like 13%, is there any other downside to just keeping them? Even if half full, it sounds like you would still be cash positive !! Other downsides though could cruel the positives – e.g. if this is a regional area with just one eemployer (and they are looking to close down…) What is the vacancy rate currently?
Returns sound great – but is there another “elephant in the room” that looks particularly dark? :)
I guess there’s not that much downside to just buying and holding the properties, especially since the area have 0.8% Vacancy rate, and only 30 minutes from the CBD.
The only problem is I don’t have the deposit, nor the borrowing capacity, and was hoping to gain control over the property with an option, strata title for maybe $50k, and then onsell them individually onto the market for a quick profit.
Considering that this block will require fire separation, and may cost $20k to strata per unit, might mean this deal might not be worth pursuing using this particular strategy.
DavidBennyModerator@bennyJoin Date: 2002Post Count: 1,325
Well, you never know – someone reading this might be willing to pay to know where this cashflow gem is, and you may be able to gain a spotter’s fee !! :)
BennyC.R.E.A.MParticipant@solotakJoin Date: 2017Post Count: 1Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 11,992
Because you need to be Licensed to take a few for service.
Yours in Finance
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