What happens to old apartments with future development ?

Something that has crossed my mind recently - and forgive me if this is a very basic answer but it's one that I haven't heard about much, but what happens/what are the owners rights if you own an old apartment/unit in a complex that gets decided to be updated via demolition and re build?

Reason being there are some dirt cheap (mid $200k) apartments in and around the Perth CBD in buildings that are probably 50 odd years old.

A lot of these complexes are positioned in prime locations situated in between new high rise complexes so I would only imagine one day become the same.

So again, if I were to own an apartment in the old complex, who decides and what happens if the time came to develop?

Scott

 

If the zoning allows, % of owners agree (covered under the strata act for WA) you can sell. In NSW this % was changed from 100% to 75%

 

So many options.. it depends on what the developer wants, and what they want to offer, and what the owners are willing to accept. You need 75% of the residents to agree.

Two possible outcomes:

1. A developer buys you all out for (hopefully) more than you paid. You move out and find another place.
2. A developer buys you out and gives you an option to buy back in (for more than they pay you, or maybe the other way around! depending on the development).

Anything could happen though. It may never happen at all...

 

I would be interested to know also but presume the owners by majority vote?

<edit> that's what happens when you leave a page opened, others answer in the interim

 

Owners sell, new owner bulldozes and rebuilds. Sometimes with a preferential buy in for existing owners.

 

Hi Scott, in WA you need unanimous resolution of all persons with a registered interest to terminate a strata scheme (banks and caveat interests well as owners).
But wait, it could all change shortly. Landgate is currently conducting a Strata Titles Act Reform (STAR) which could change everything as well as introduce new strata types (community titles) due to have happened already so should / could happen soon. But its a Government thing so who knows. Check out their web site for details.
I agree with Mikey7 options 1 and 2 are the most likely under the current system.

 

Its still a unanimous resolution in vic as well, the laws are currently being looked at to change the requirement to a special resolution of 75%.