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
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.
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.
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
$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.
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.
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.