I came across the sale of block of units at realestate web site. And noticed it says no body corp fees for some properties. And others are strata titled. So I am just wondering what title types are available for block of units. If you're the sole owner of the whole block of units, do you still need to have body corp fee? If there is no body corp, does that mean all the units are under one title and cannot be sold individually? Is the title policy different at different states? Thanks.
If the entire block is being offered in one line and they are not strata titled then they are on one title and cannot be sold one a time individually. Sometimes they offer blocks of units in entirety that are all strata titled, however without a body/owners corporation. If you own them all, then there is no need for a body corporate by my understanding. Although there may be state by state variations. In the event you wish to on-sell a strata titled unit from the block in the future an owner's corporation needs to be in place as there will be a new owner taking title in the unit block.
My units are on one title, cannot be sold separately. One rates bill for the block but all the usual individual expenses. No body corporate.
And one insurance bill. All outgoings are effectively lower than if they were strata titled and you owned the lot. Water useage is difficult if they aren't individually metered. I have a block that is strata approved and I have never registered the strata. I have no intention of selling them off one by one. Land tax would also be higher as the sum of the parts is often greater than the original whole. The only benefit of having them strata titled is finance. You can use different lenders. When they are in one line, they are slightly more limited in financing options and LVR's. Banks see them as a higher risk as there is usually a smaller market for these then selling off individual units. @MyCastle are you looking in Sydney?
Thanks, very informative. I live in Sydney. But not looking in Sydney at the moment. In 2013 did inspection for about six months in Sydney and did not end up buying. Then looked in Brisbane and bought IPs there. If bought in Sydney back then, the capital gain would be much better than the Brisbane IP. Now it's hard to afford in Sydney. On the other hand, not sure about the future investment strategy. As it seems only big cities such as Sydney and Melbourne have better capital gain. Also maybe less is more. Buy the block of units may be better than a number of properties. Especially it would start to attract land tax once you own a few IPs. And if one Sydney property gains more than a few properties in Brisbane, maybe one in Sydney is enough? Less hassel in management as well. Being a remote landlord can be hard sometimes. So not sure if we should consider buying in Sydney in the future.
