Company title to strata title

[Lissy]

Hello everyone!
I've done a search, but haven't found an answer to my question....
My SIL owns a unit in a complex under company title (in Victoria). They are interested in strata titling the units.
I would appreciate some ideas on how to go about doing this, as it's not something I've done personally.
Thanks!

 

[JoannaK]

I suspect that you would first need to make sure that the building complies with current strata regulations. Alot of company title buildings fall down in this area, mainly due to fire regulations and balustrade heights.

Then, you'll most likely need to speak to a surveyor, or even speak to the Land Titles Office.

 

[Lissy]

Are there particular types of companies that specialise in checking for strata possibilities? Would a regular building inspector be able to do it?

 

[Simon]

I would be approaching my local council first. Speak to the Duty Planner.

There are Surveyor companies that specialise in the reports and inspections you require. Such things as Fire Rating etc.

Can be a lucrative way to increase the value.

All the best,

 

[Lissy]

Thanks for the feedback so far, I've passed it on.
I think the motivation is more to do with reducing the land tax bill on the property!

 

[JoannaK]

Thanks for the feedback so far, I've passed it on.
I think the motivation is more to do with reducing the land tax bill on the property!

Hi Lissy,

If that's the ONLY motivation for a conversion to strata title, then I would surely suggest against it.

In my experience with strata titling newly built properties it amazes me that I have a parcel of land worth $600,000, and as soon as I strata it into 22 different lots that exact SAME parcel of land has increased in value overnight to $1,700,000.

Strata title has much more value than flats on company title or single title..

Hope this helps a little.

 

[geoffw]

...and the value for rates may well increase as well (depending on the council)

 

[Lissy]

Hi
I hadn't thought of that angle. Having said that, at the moment, even with a company title, the units are "let" to individual owners. So I would assume that once it's strata titled, it will be easier for individual owners to not fall under the land tax regime. However the rates aspect is still likely to be relevant.