Unit block on one title - strata ??

Hi Looking for your wisdom around how easy it is in tassie (or in general) to strata a unit block. Looking at a block of 4 - two 2x1 units and two 1x1 at offers over $320000 in regional tas... Rental returns are around 8%.... it's a 1965 build (solid as) but pretty much in original condition. Rents could be increased a lot with some love but obviously strata would see us able to sell one or more and keep one or more possibly. I've no idea about this as only purchased houses before and a unit already under strata. Any help appreciated

 

I'd be keen to hear thoughts on this process also, as I'm about to commence my first strata title project after previously being involved in land subdivision only.

My initial due diligence process has involved speaking with the local town planner to understand the process and check if they can foresee any road blocks. If all looks ok I then engage a local land surveyor, run through the project, again tackle any potential issues and gain a full costing including the timeframe. After factoring in any renovation items I can then complete a feasibility and know if the asking price will work, or if I would need to consider negotiating after completing a building and pest.

 

To strata subdivide you will need a DA. This will trigger BCA compliance - fire separation, noise, hose reels, exit lighting, handrails etc.

 

@Ryan_bk
did you end up going through with the strata?

 

Hey Ryan, yes I've almost completed my first small strata project (to dip my toes in). I ended up purchasing a duplex in Armidale NSW. I settled last year, and the strata is expected to be finalised, ready to reval in the next month. The process has been positive, so much so that I purchase a very similar duplex in Armidale a few months later and I'm going through the same process with this second property. Seperate to this I am in the process of building a 2x 3bed 2bath duplex in Thornton Newcastle, which after delays on the DA is now progressing nicely on the build. So have been keeping busy over the last 6-12 months. In the market to buy again now, but considering a commercial as my next purchase to assist with the overall cashflow of the portfolio (servicing is now beginning to become a challenge). How are you going @RyanB, are you in the market for a strata project?

 

RyanB and Ryan-bk?

 

Haha, strange right?! I promise I'm not having a conversation with myself...