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Strata some town houses?

Discussion in 'Development' started by Spazmor, 31st May, 2016.

  1. Spazmor

    Spazmor New Member

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    I own a pair of town houses in NSW that are on one title.
    I intend to hold them long term but would like to show the bank that they could be sold separate with the aim of releasing some equity.
    Am considering talking to the council and surveyor and getting strata titling approved but not actually strataing them if this is possible?
    Do you think a bank would go for this?
    Any tips or advice would be appreciated thankyou
     
  2. thatbum

    thatbum Well-Known Member

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    I don't think a bank would go for it unless you actually strata'd them.

    Why wouldn't you do this? To save a few bucks on rates? In exchange, you could get the equity release - seems worth it to me.
     
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  3. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    If they aren't separated, the bank will value them in one line. You'll need to go through the process properly to create the equity you're after.
     
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  4. Leo2413

    Leo2413 Well-Known Member Premium Member

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    One line, no extra dime.

    Broken in two, big money for you.
     
  5. Spazmor

    Spazmor New Member

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    :)
    Ok, if it's necessary I'll strata them.
    Actually I appear to be paying double the normal rates atm anyway.
    I'm guesstimating it's going to be roughly a 6k exercise and a non cgt event
     
  6. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    $6k is loose change for a sub-div. :)
    As far as I'm aware it will only be a CGT event when you sell, as normal.
     
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  7. Spazmor

    Spazmor New Member

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    Just received surveyors estimate for $7000 ex gst
    Including Site survey, Liaison with council, Prep of redefinition & strata, Rego & titles
    Sound fair?
    I'm trying to get another quote.
     
  8. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    I just wrote 2 tax tips on strata titling and cgt.
     
  9. Spazmor

    Spazmor New Member

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    Another thing..
    I've been in contact with a council duty town planner who believes, considering that they're already built and separately metered, there's a good chance that they're able to be converted to Torrens titles (despite the block size - 702m2).
    I imagine a Torrens should be more attractive to a potential purchaser than Strata?as it's arguably going to be simpler and no strata fund.
     
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