Where to find block of units on one title?

Discussion in 'What to buy' started by Ryan_sc, 9th May, 2017.

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  1. Ryan_sc

    Ryan_sc Active Member

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    Hi all,

    I am currently in the market to purchase a block of units on the one title. Location is not the main focus at this point in time, as long as the project stacks up and equity can be achieved through the successful completion of the strata titling (my equity criteria is looking to make back the initial deposit).

    To date I have been looking on Gumtree, Mitula, have setup notifications on RE & Domain, as well as speaking with a few agents to let me know if any relevant opportunities should come their way.

    Are there any additional websites, or avenues that I have missed out that based on your experience I should consider including also?

    All feedback greatly appreciated.
     
  2. D.T.

    D.T. Specialist Property Manager Business Member

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    Let me know if you find any and I'll offer on them too :)
     
  3. thatbum

    thatbum Well-Known Member

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    How will you know if you can successfully strata title the units? And if its feasible?
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    Thorough due diligence?
     
  5. Ryan_sc

    Ryan_sc Active Member

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    I will need to complete a feasibility which will include liaising with the town planner from the local council and speaking with a prospective land surveyor that would be used to manage the process. Of course only a number of located 'opportunities' would in fact stack up.
     
  6. Jimrohn

    Jimrohn New Member

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    Hi I'm new to the forum, I was looking for something similar to invest in, and something interesting but a little bit out of my budget would be this I guess:

    1-6/390 Annerley Road Annerley Qld 4103 - Unitblock for Sale #125256290 - realestate.com.au

    I went for an inspection and it is all under a single person's name. I found it interesting as it is in a good position Brisbane-wise.

    Nothing much else going on at least in Brisbane, I guess six packs are the unicorns of the market :)

    I hope it helps

    Ciao
     
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  7. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Most block owners are long long time owners. Death and financial need are two of the few motivators to sell ---

    Take care with strata titling for the fun of it. Why would you seek to do that if its held as an appreciating investment ? QLD does have a limited function land tax concession for strata titled "blocks" to address valuation enhancement but it can be problematic. ie equity may result but so will land tax.

    This could signal the difference between ordinary income and CGT where there is a subsequent sale.

    Also take care where the use is not obvious 6 x standard QLD residential tenancies. Do your due diligence !! If the vendor contract mentions GST or if its an apparent boarding house seek quick tax / legal advice.
     
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  8. Ryan_sc

    Ryan_sc Active Member

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    Good points, thanks Paul
     
  9. DaveM

    DaveM Well-Known Member

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    They come up on a slow but regular basis in Adelaide, typically 1950-70's built so strata titling can be a challenge due to construction and fire separation
     
  10. Ryan_sc

    Ryan_sc Active Member

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    BCA approved walls is what I have found to be a common stumbling block when evaluating opportunities. I'll be sure to keep an eye on Adelaide opportunities. Could prove to be advantageous as I completed a subdivision near Gawler last year
     
  11. Heinz57

    Heinz57 Well-Known Member

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    That's a nice block. The big thing is whether you can firewall between the units which is why you need to stick to brick and be careful of the frame.

    When I bought my little unit block the old lady gave all the proceeds to the church. Including the 2k penalty interest she stiffed me I assume.
     
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  12. Tony Fleming

    Tony Fleming Well-Known Member

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    Albury region has a large number of blocks of units on the market. If you got them at the right price it could potentially be feasible. I'd personally buy and hold and wait a few years before strata titling.
     
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  13. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Getting in the way of a wall of affordable housing regs can be a late DD discovery, mostly in Sydney.

    ta
    olf
     
  14. Miss_D

    Miss_D Well-Known Member

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  15. Ryan_sc

    Ryan_sc Active Member

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    Thanks Tony, what is the reason for waiting a few years prior to starta titling?
     
  16. Tony Fleming

    Tony Fleming Well-Known Member

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    I just don't think it would be profitable enough at the moment. I looked a year or so back and strata titling costs barely made the deals worth the effort. You would make more money holding them and getting an income each week as most blocks of units gross yield starts at 8%.
     
  17. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Another search site would be Trovit for trawling numerous sites with the keyword of your choice and alerting you. It's not perfect but can work

    of course Realestate.com.au does have a Property Type of "blocks of units" which you can then do a very large citywide or almost city wide search in most states
     
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  18. headsonbeds

    headsonbeds Well-Known Member

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  19. Scott No Mates

    Scott No Mates Well-Known Member

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    Look for developer's mortgagee sales. Unfinished blocks pre-strata but would be closer to compliant.

    There may be some developer's risk associated with the completed work but it's cheap if your up to it.
     
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  20. dabbler

    dabbler Well-Known Member

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    I have seen quite a few in Albury too, Tony knows the area.

    I also know where there are some in Sydney, one won't sell, not even with todays prices, the other will, but is surrounded by other new blocks going up and is dwarfed, probably wants a pretty penny too, so is still there in SW AFAIK
     
    Tony Fleming likes this.