100 townhouse estate.

Discussion in 'What to buy' started by Infra, 15th Dec, 2020.

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  1. Infra

    Infra Member

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    Hi,

    Wanted to get opinions on pros and cons of buying townhouses in a plot that have more than the average number of townhouses. I believe normally you will find 3-4 townhouses in a plot.

    I was looking at this property and looking at the S32 there is more than 100 or so townhouses in that plot (what ever we call it.)
    https://www.realestate.com.au/property-townhouse-vic-mitcham-135066146

    On the less extreme end, another townhouse https://www.realestate.com.au/property-townhouse-vic-mitcham-135018458, which has 10 townhouses in this plot



    Is there any cons in buying these types of townhouses assuming the size is comparable to an average townhouse? Any issues around body corporate, perceived as less attractive etc?

    Cheers
     
  2. Mark F

    Mark F Well-Known Member

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    We live in a set of about 50 townhouses (mix of 2 to 4 beds) and the complex is well regarded as the overall layout and design is of very high quality - not just serried rows of boring boxes. As would be expected some of the designs are less appealing than others and this is reflected in time on market etc.
    Like all things the quality of design, both as a whole and individual townhouses affects the perception of potential buyers.

    As for BC, the size of the complex can be both a benefit and a hinderance. The benefits are that a single owner is less likely to hold sway, a larger pool of people for the committee, risks are well spread and decent management can be afforded (including legal actions). Hinderances is a greater degree of bureaucracy and finding a balance between the competing needs/wants of the residents.
     
  3. The Y-man

    The Y-man Moderator Staff Member

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    Is there an OC mentioned on the S32 for parkway?

    The Y-man
     
  4. Infra

    Infra Member

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    Sorry, what is an OC?
     
  5. The Y-man

    The Y-man Moderator Staff Member

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  6. The Y-man

    The Y-man Moderator Staff Member

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  7. Curious2019

    Curious2019 Well-Known Member

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    Some larger townhouse developments can have embedded networks for electricity and nbn - check this before you buy. A friend of mine has been stuck with an overpriced electricity supplier and nbn provider and can’t change or doesn’t have many viable options.
     
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  8. Infra

    Infra Member

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    Thanks, I should have guess that. I will have a look at that. When you mean parkway, which property are you referring to in my original post? or was that a general question. Are you referring to park or the shared drive way? And what is the relevance of that being on OC or not?
     
  9. The Y-man

    The Y-man Moderator Staff Member

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    The address:
    20 Parkway Lane

    It doesn't look like there would be an OC - if not, it is a house, whereas the Burnett (that's the address of the other one) looks more like a "traditional" unit.


    The Y-man


     
  10. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Community title shouldnt be confused with OC and strata either. Some cluster forms of housing with shared community facilities (pool, gym etc) may be community title. They often come with right of access to certain community owned facilities plus a license or title to a specific lot. Usually with loads of rules too.

    Seek legal advice based on specific contract
     
  11. Infra

    Infra Member

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    yeah, 20 parkway lane has a body corporate. That is part of the more than 100 townhouse complex.
     
  12. The Y-man

    The Y-man Moderator Staff Member

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    Ah cool - I just read the ad a bit more carefully - so manicured park and BBQ facs as common.
    What are the cost diffs between the 2 OC's?

    The Y-man
     
  13. Infra

    Infra Member

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    I have looked at a couple in that estate and it seems to vary between 1600 to 2400 a year. not sure if it is based on the size or property or something else.
    7/32-34 Burnett Street is 1550 per year.
     
  14. The Y-man

    The Y-man Moderator Staff Member

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    Usually on the size. You'll get a breakdown of what the money was used for in the OC budget included in the s32. In both these, it'll probably be gardening, maintenance, and common property insurance.

    Sounds very high for Burnett - can you see if it include building insurance? (in which case it will make sense)

    The Y-man
     
  15. Infra

    Infra Member

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    yes, it has building insurance. I was of the impression that normally OC have building insurance. Is it not necessarily the case everywhere?
     
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  16. The Y-man

    The Y-man Moderator Staff Member

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    Not for units/townhouses/villas (yes for apartments) - all the units we own, we do our own building ins. The OC only does the gardening, maintenance and common property insurance.

    It's not a bad thing doing across all the building though - you're likely to get a discount etc.

    The Y-man
     
  17. craigc

    craigc Well-Known Member

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    Interesting @The Y-man - in Vic also, previously in my experience (Townhouses and Villas) building insurance was always covered by the OC as per @Infra.
    Guess it makes sense to check carefully rather than assume one way or the other when researching.
     
  18. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

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    So are these torrens title units? If they're strata then my understanding is that the building forms part of common property and therefore needs to be insured under the strata scheme.

    Insurance – owners corporations

    I'm aware building insurance via the OC isn't required in a two-lot subdivision in Victoria.

    Two-lot subdivisions

    Interested to hear more about the set up of this.

    - Andrew
     
  19. The Y-man

    The Y-man Moderator Staff Member

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    The wording is
    • reinstatement and replacement insurance of buildings on common property
    The actual (villa or townhouse) units are not on common property - they are titled to the owner.
    So the only building insurance needed is if there is an old gardeners dunny/shed or something....

    The Y-man
     
  20. Mark F

    Mark F Well-Known Member

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    Torrens Title (originated in 1858 in South Australia) is the system of identifying ownership by registration rather than "old system" where the ownership chain needed to be traced back to the original land grant for legal certainty. "Old title" has largely disappeared as it is usually converted to Torrens Title on change of ownership. Strata title (possibly not allowed under old title) splits out "common areas" which are managed by an Owners Corporation for the common good. The OC also has the power to enforce common aesthetics etc. The decision about what is common property is down to the developer. The realities of this split will vary according to whether the development is townhouses where driveways, gardens and service delivery envelopes make up the common area but the land and often private garden space is privately owned, or units (several in one or more blocks) where the external building fabric and access (passages, stairways etc) are also common property.
     

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