buying a house on subdivided land?

So I'm considering buying a property as an investment property and it's kind of weird so I just want to know if it's a good idea.

Basically, it's a free standing house. But there is a detached double garage in the back. There is a studio on top of the garage, and the deal would be I would get the two garages, but the studio would belong to someone else.

In terms of access, they get in from the back street and we get in from the front so there is no shared access or anything.

There is a backyard but they've kind of fenced it off and divided in half.

Anyway, the thing is, both "properties" are technically are on the same block of land.

I didn't realise you could sell like that. The agent says it's basically like a townhouse except you would be your own body corporate whose only responsibility is to divide the water costs and rates in half.

I looked around the suburb (this is Harrison in ACT) and there does seem to be several buildings like that. I'm not sure if they have two owners or if it's owned by the same person though.

Anyway, just wondering if something like this is common and whether it's a good idea? What are the ramifications?

 

Get VERY good legal advice before contemplating something so complicated.

Why make life difficult for yourself? There are plenty of straight forward investments.

And the issues you are having will also concern future buyers when you sell, and severely limit the pool of potential buyers. And don’t fall for the “but never sell” mantra - life has a funny way of getting in the way of the best laid plans. You must always have an exit strategy, the simpler the better.

Look elsewhere.
Marg

 

What you buy is the land. Any house attached to the land is part of the land so find out what you are actually buying as if the land is one title you would generally get all structures on it

 

Are we talking a strata titled property ?
The rates would never be "half"

Also, don't forget about things like electricity, is the property separately metered ?
If not and you bought solar panels it would also benefit the other party.
How is water use divided, 80/20, 60/40, or is it separately metered ?
Even down to using the shed, if you want to use a section as a home office/hobby area you will likely have to listen to those above, and they you !
The there is maintenance issue's, unless it has been quantity surveyed and apportioned then every repair will be an argument..