Block of Units on 1 Title

Hi all
currently looking at purchasing a block of units on one title, the long term plan will be to strata title the units adding value.

Has anyone gone through this process? Would like any tips.

Many thanks, Cheers, MTR
 
not yet, but in the process of buying both titles of a duplex, great thing about owning the whole lot is that you don’t have to get permission to do work etc on the building ie paint, remove trees and so on.... Plus you will own the land component as well

Good luck with your plans
 
Fire ratings may also prove a problem. If there is an insufficient fire rating between the units you may not be able to strata them until you have upgraded- and that may prove expensive.

Get advice from a building inspector.

If you are going to keep them rather than quickly onsell you may well be up for higher rates.
 
I thought there were some great opportunities with this strategy NSW, Vic, QLD mainly regional centres population over 20,000........... except the Banks will only go 60% LVR, but I am awaiting for more info to clarify this and whether there are other options, will keep you informed on the progress.
 
My experience has been commercial LVR of 70 % however with resi rates. 60 % is low however, that may be the hedge the bank's want on a regional block of units. Fire ratings is the big issue as Geoff has mentioned.

Your rates (if you are holding them) and insurance and land tax will all rise, yet your rental income won't change. You may be able to re-value them once the strata has been registered and gone thru and split the lenders to achieve a higher LVR

In this market I would be careful of this strategy.....make sure there is enough demand in the regional centres for you to exit and sell. If you are seeking to buy and hold, I would leave them in one line and keep your costs down IMO.

What is your strategy MTR? Keep them all, sell them all or a combo?
 
My dad bought a block of unit (8)for 900k in Wiley Park (NSW) a few years ago hoping to sell them through strata. He looked into it and decided against doing it coz it would have taken a long time, but he ended up selling the whole block again 3 years later for 1.8mil, BUT could have obviously recieved more if he sold them separatley.

The taxes that have to be paid are shocking.
 
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