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company title IP- trouble ?

Discussion in 'General Property Chat' started by seachange, 24th May, 2016.

  1. seachange

    seachange Well-Known Member

    Joined:
    26th Feb, 2016
    Posts:
    60
    Location:
    Sydney
    found an apartment I like, but it's unconditional company title. Nab won't lend on it, so I have to go through hoops with another lender. I'm wary of an investment a big bank won't touch.

    It could be improved by knocking out a wall, but how difficult are renos in a company title building? Top floor, so that helps, but I only have a few days to make decisions and I'm a bit out of my depth with this one.
    Agent said building could be converted to strata eventually. I have no idea of cost or issues in old with that. My guess is if there are older owners, they won't want the value add from that ( pension might be affected).
     
  2. Wall Street

    Wall Street Well-Known Member

    Joined:
    22nd Oct, 2015
    Posts:
    120
    Location:
    Melbourne
    If you're having issues with funding today, chances are that future purchasers will have the same issues tomorrow.
    Unless it's a really good deal, it may be worth passing on this.
     
    Propertunity and Terry_w like this.
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    18th Jun, 2015
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    Location:
    Sydney
    Jurisdiction for disputes with company title is the Supreme Court - which is very costly. Strata disputes can be handled by tribunals.
     
    Elives likes this.
  4. Pins

    Pins Well-Known Member

    Joined:
    19th Jun, 2015
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    100
    Location:
    Melbourne
    I think it depends on the building. Myself and a number of other owners have done renos and there hasn't been any issue.

    No issue with demand for company title apartments in potts point and Elizabeth bay
     
  5. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    641
    Location:
    Sydney
    The issue is finance and there is a somewhat correlation between ease of finance and CG on a property.

    Only a handful of lenders do company titles, with St George being the best @ 85% LVR, Westpac and ING @ 80%, ANZ @ 70%.

    Its been like this for many years so come resale the purchaser may have the same issue particularly if he or she is looking at a par 90% LVR purchase (which a lot of buyers are).
     
    Terry_w likes this.