Stratum Unit

Hi all,

Looking for peoples experiences with stratum units.

Thinking about placing an offer on a 2 bedroom unit within a stratum block. May be able to achieve relatively decent yield made possible by the unit being stratum and relatively cheap.

From what I've read thus far, it seems the biggest pitfall with stratum is difficulty in getting lending? Based on the section 32, the building rules for renovations etc look to be similar to a strata title.

Has anyone had experiences positive or negative with a stratum title property?

Thanks in advance.

 

AFAIK (in NSW) the unit (strata titled) may sit within a stratum or occupy the whole stratum. The owner of the stratum may have development rights within that stratum. A stratum is often used to separate various uses within a building eg: Carpark, Retail, Office and Residential components in a mixed-use building. The uppermost stratum would provide the developer with the right to build a tower above the other stratums.

The Stratum plans would provide for several cross easements for services (eg for lift shafts, air vents, hydraulic services etc).

@lixas4 could add his 2 cents

 

Thanks for the reply. The unit block is in Victoria if that helps. Think it's the same set up as a company title? Can stratum and company title be used interchangeably?

 

Stratum is a volumetric segmentation of a property whereas company title has each owner being a director of the company which owns a property and having exclusive rights to occupy a unit. So not at all interchangable.

 

Stratum and company titles are different. From memory, stratum only enables you to own what's with the "bricked walls". Any backyard is technically common area. I remember not all lenders like stratum too, so it can be hard to get finance, and therefore hard/slow to sell if you need. I believe lenders reduce the LVR i.e only 70% LVR maximum as an example