Block of units

Discussion in 'What to buy' started by Arecaceae, 11th Oct, 2021.

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  1. Arecaceae

    Arecaceae Well-Known Member

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    Is it a smart idea to buy strata-titled unit blocks as an investment? Because you own everything and control where all of the money goes, there are no strata fees or anything like that. On the other hand, you have the option of selling some while keeping the others, or selling them individually if necessary.

    I'd like to hear your thoughts on the matter.
     
    Arecaceae, 11th Oct, 2021
    #1
  2. thatbum

    thatbum Well-Known Member

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    Probably not unless you’re getting a significant discount for buying in bulk.
     
    thatbum, 11th Oct, 2021
    #2
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  3. Scott No Mates

    Scott No Mates Well-Known Member

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    So your savings will be:
    • Mandatory building insurance
    • Strata manager (optional)
    • Council rates
    • Compliance AFSS
    • Lawns/Gardens
    • Maintenance
    • Sinking fund contributions
    How much do you think can save?
     
    Scott No Mates, 11th Oct, 2021
    #3
  4. wylie

    wylie Moderator Staff Member

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    We could have left our townhouses on one title without plan sealing them, to create individual lots.

    That would save us some land tax, rates, utilities.

    But we were advised that if we didn't title them individually fairly soon (whatever that process is called... plan sealing?) then down the track we might have to bring them up to the current code. Or perhaps if we couldn't to it later for some technicality of not being to building code in the coming years when we try to do it, we may not be able to sell them individually, spread over four tax years, and could face selling all four at once. So we chose to do it now.

    Also, we were advised to set up a sinking fund and whatever would be expected, because if we choose to sell one of them in a few years, a buyer will not be happy that there is no sinking fund.

    That's my basic understanding anyway from people who understand this stuff much better than I do. We listened to the experts.
     
    wylie, 11th Oct, 2021
    #4
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  5. Luca

    Luca Well-Known Member

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    Yes this is important, changing of zoning / laws, it could happen that in future you cannot do what you can do today!
     
    Luca, 18th Oct, 2021
    #5
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  6. MWI

    MWI Well-Known Member

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    Have done this but for other reasons, some which include:
    - getting on property ladder with other family members
    - we still run our own strata so very low costs, no admin just split bills proportionally, strata still needed if you wished to sell
    - in future plan to redevelop into larger density or resell to developer to do that
    - to lower land tax
    - to own the whole block of land for total control
    - was able to benefit from building including fixtures and fittings depreciation
    So it depends what's the end game for you, what are your reasons for doing this?
     
    MWI, 18th Oct, 2021
    #6
    Gforce likes this.
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