Growth potential of old duplex - Perth

Like this one? it states: "the boundaries are the external surfaces of the buildings", and also states that " Areas numbered are for the excluded use of the owner of the lot numbered thereon", so does that mean I dont exclusively own the land (saying A1) outside of my lot building, the land is still shared land? really confused.

 

googled that, site value is the land value only.

• Improved capital value is the property’s total market value in current state, including land plus buildings and improvements.
• Site value is the value of just the land itself without any structures or enhancements on it.

 

My understanding is pre mid 85 all area outside the building is common area (exclusive use is still common owned property). As you can see it was changed so you own the outside of the building provided no one objected.

It's also my understanding that the selling RE has to highlight on the plan what you are actually buying. This has to be given to you when you make an offer.

My understanding might be wrong

 

Yes, I believe so. Let's say, if I am going to build a duplex in my backyard, which is smaller size, definitely I wont set up a strata plan to allow the smaller duplex to share half of my block entitlement. But all those are just our speculation, cant find a legal or policy backed confirmation, lol

 

Again my understanding so I can be wrong. I spoke to someone this week about changing strata type.
As is, as a result of the conversation.

To modify the property shape you need permission from other owners, they can't really object. If the footprint changes including adding a patio requires the property to be re surveyed. Other threads suggest changing/increasing the footprint might be difficult.

Most of these issues disappear if survey strata.

What area is the Certificate of Title. Volume and Folio you are buying or will own?

 

This is an early 90s Strata plan. It shows unit 2 is buying 158m2

 

This is pre mid 85 strata.
You are buying the area of one property (second picture) Again only my understanding


. The rest is common property. I walked away because it seemed an unequal distribution of land. If I had owned the rear one (2) I would have voted no to change

 

yes, I think normally they shouldn't object, as we are two separate dwellings, no party wall, only a shared pathway which they use as a street leg. I heard if your neighbor does object, you can bring them to the court. But that would take too long and too much uncertainty.

The strata plan is in 1981, only states the building size which is 93m, didn't mention the land size out of the building at all. The agent is not sure about the actual land size as well, so he didn't highlight the actual land I am buying.

The property is near Claremont, with roughly 230 sqm land only if it's half-half.

I was wondering if they can convert to survey strata or not? no comon wall, and the agent said the utilities are separated(not sure if that's true or not). Even if it can't be converted, I still want to erect some fence around the exclusive land, to have more privacy. will this require neighbor approval as well?
Probably my neighbors even don't live inside, only some tenants, which would make things even harder.

 

Many RE agents worry me. They have no idea what they are selling.

I Googled companies that do the conversion. I emailed one and asked if the property can be converted. In my case being pre 98 it can be. However the final block shape is determined by the surveyor again my understanding.

You are buying 93m2 the other building will be similar. Together you own the rest of the land

The duplex at the end of my street. One owner started storing cars on the yard in front of the other side. It went to the Tribunal because it is pre mid 85 strata they can

 

They can and do.

For the duplex half I owned, the neighbouring owners took me to SAT and lost without me even having to speak.

I much later agreed to the strata change when it suited my purposes and at the neighbours cost.

Don't attempt this if you are not confident on neighbouring owner agreeing.

 

If the whole land has to be equally divided, I wont buy lot 1, as the exclusive use of land for lot 1 is bigger than lot 2. Seems lot 2 won't be happy to convert as they will have less land after conversion.

 

That comment was about changing the footprint. As I wrote a result of a phone call about changing strata type this came up in conversation.

 

I want to change the front covered patio to a sunroom. I called council see if possible, the planner said it should be fine since that's already covered, but I need permit first.

 

Hi Jaydee, would you mind sharing more details about the strata change? it must be a very unique experience that everyone in this thread would be very interested in. Or how does your neighbor successfully persuade you? Thanks a lot.

 

I had to search an old conversation and do a cut and paste:

My Perth duplex property was a 70’s duplex brick/tile property on approx 920m2 of prime land with a common wall down the centre and a fence continuing down the same line dividing the property in half (separate driveways etc). Whilst each house was actually owned by individual owners, the outside areas were actually common property so even though each owner had exclusive use of the outside areas we always had to buy insurance with Public Liability for common areas. This was no big issue.

My half was an IP and I had it tenanted. The elderly lady who owned the other half passed away and the executors of her estate put it on the market several years back. Most potential buyers had the idea of knocking it down and rebuilding, however, because of the type of strata it was they would need my permission for any changes to the property (which I can with-hold). The executors then proposed that we have it converted to Survey Strata and we share the costs. This was of no use to me so I declined. The executors then offered to pay all costs of the survey strata conversion but I still wasn’t keen and refused. They took me to SAT and lost. Long story short I eventually agreed to the conversion (at their cost which was approximately $5000).

The property sold and the new owners had plans to knock down their half and rebuild new. After demolition the owners decided to run a new sewer lines and connection (which wasn’t essential for Survey Strata) but which would then have allowed for the possibility of a further change to Green Title at a relatively small additional $4000 cost given the survey work had just been completed. We didn’t do the Green Titles, but perhaps in hindsight we should have.(?)
Anyway, because of the common wall issue, the double wall was retained and the roofline was altered to suit. The old and new single level properties sit side by side (chalk and cheese) and we now do our own insurance arrangements.

As for the initial question on capital growth, after the strata change (around 2017) the value of each half was around $800k. Fast forward to today and my half with minimal improvements (circa ~$20k) would sell in the current market for around $1.5M.

 

Hi Jaydee, appreciate for sharing this unique experience with us. That's a great investment, million of dollar business

By the way, a question, to convert to the survey strata title, you don't need to split the unitilies, like electricity, gas or water supply, or sewage? just ensure they have independent meters?

 

I don't really understand what you are asking?

Each half of an existing duplex property will have its own meters for utilities (water, elect, gas), so if the strata is changed to survey strata they will still have their own supply and meters, so there is nothing to split.