Hi I have recently purchased a couple of units with my wife. As the units are on separate titles, the way it has been structured is she owns unit 1 and i own unit 2. These units are the only units on the block, so I assume it would be considered at "Two-Lot Subdivision". I was wondering if there would be any tax benefits with setting up an owners corp between the two of us for the properties. I assume that the money paid to the owners corp then become tax deductible, however i am unaware of any implications of trying to do this. Does the owners corp have to pay tax on the money paid to it? What happens to any money that is not used by the owners corp? Cost of repairs on common property, must that be paid out of owners corp funds or can that be paid by owner (myself/wife) directly? Does money paid to owners corp need to be paid directly into a separate account? Just looking for some guidance on what is possible with owners corp and if it is worth setting one up between us.
If you are seeking some benefit or advantage then they may not be one and the issue may just add cost. The issue may be relevant for insurance and determining maintenance of common property. As each building seems to be on its own title there seems no relevance other than the common property which neither of you own eg driveway etc, a strip on lawn etc. Maybe a legal question to ensure you comply with state laws and if you later sell one or both the issue may need to be addressed.
Be wary of setting up an owner's Corp with external strata manager just in case your missus or you decide to run away with them.
What sort of titles are they? You cant setup a strata scheme/owners corp without the matching titles.
The plan would be to have a self managed owners corp. So i guess in that case, she ran away with the strata manager a long time ago!!! What sort of costs are these? Does it apply to "Two-lot subdivisions", is they seem to be exempt from lot of the regulations? Two-lot subdivisions Unsure of what you mean by what sort of titles are they? She has sole ownership of one unit, I have sole ownership of the other.
