buying a block of flats/units

[not so lucky]

Hi Folks
I am looking into the issues associated with owning a block of flats/units as an IP. I have held a single unit previously but I don't like dealing with body corporates etc so I would like to own the whole shabang (?). I have seen some blocks advertised in Bris that are "registered flats". What does that mean? What issues are there regarding owning a block of 6 under strata titles? Is it better to have them under a single title? Are the regulations different in NSW?
Does anyone know of some resources that I can read up about this?

Happy Easter to you all

 

[Rolf Latham]

Hiya

Possibly one issue to keep in mind. 6 units on one title best you will get is an 80 % lend.

6 units on 6 titles you might be able to get a 95 % lend

ta
rolf

 

[Rolf Latham]

BTW regsitered flats is prob a council permission for them to be separately let, rather than separate titles

ta

rolf

 

[Lplate]

BTW?? What is this?

 

[Rolf Latham]

Hi LP

Damn those TLA's (three letter acronyms)

BTW = By the way

ta

rolf

 

[geoffw]

Depending on the lender, you may be subject to commercial terms on a loan (higher interest, P&I, 10 year term).

Depending on the council area, x units strata titled may be subject to higher rates than x units on a single title.

A flock of bats can be much less of a headache than single units- but there are problems as well.

If you're after less hassles, buy a house, and get a higher land contetnt- which is more likely to appreciate.

 

[alexlee]

Hi, Geoffw. Just interested in the comment about buying a house over a block. I understand that land is what appreciates, but what if you want to buy in an area where there basically aren't any houses? (Most of the 10km ring in Sydney, for example).
Alex

 

[twodogs]

6 titles or 1 title may effect council rates, land tax thresholds (if any apply) and purchase stamp duty it on a sliding scale (and there is one contract for each unit ??).

 

[mmerlin]

BTW?? What is this?

OT: WTF is BTW? Use AF

 

[geoffw]

Hi, Geoffw. Just interested in the comment about buying a house over a block. I understand that land is what appreciates, but what if you want to buy in an area where there basically aren't any houses? (Most of the 10km ring in Sydney, for example).

Sorry for the delay in answering your question.

Steve Navra© would recommend that if you can afford it, an investment property should have a minimum land content of 30% (I think) by value. There are units which fill this criteria- Manly is one good example- but there are many more which do not.

 

[jrc]

Buying the block of flats does give you control over all the land component so if the price is right ...

 

[ok180]

Has anyone had positive/negative experiences with them? Would you buy a block of units again?

 

[wish-ga]

may help;

http://www.somersoft.com/forums/showthread.php?t=16937&highlight=wish-ga

 

[alexlee]

On this topic, even if units in a block are strata titled, do you need a body corp if you own all the units?
Alex