DIY Strata

[Noviss]

What to do? If anyone has any experience here I'd appreciate some insight.

- Built a duplex about 18 months back
- Dual occ right now
- The block is not big enough for torrens title but big enough for strata
- I haven't strata'd it yet because as soon as I do my total rates will increase
- I've been waiting until I need to access the equity but that time has not come
- But it is time to renegotiate my loan
- And also have a ever so slight concern that the council may change the rules. I doubt they will go backwards on lot sizes but it might be possible to make a clause to stop people sub divvying duplexes.
- I'll be ready to access equity within a couple of years so with all facts presented now is the time to strata

Question

Do I have to strata? I assume I do because of the insurance policy?


Anyone have any insight into this or any other reasons why I may or may not have to strata? The only common things are the dividing wall, sewer pipe, and the driveway is in the middle but we neither side needs access to the other side's driveway.

 

[Wake]

I'm a bit unclear about what you are asking, especially in relation to the insurance? If Council dictates that the only way of separately titling the properties is by strata titling, and this therefore enables you to potentially access increased equity then you have no option. However, make sure your surveyor draws up the strata plan with the absolute minimum common property. Depending on how the duplex is constructed, and sited on the land, you can make each side of the duplex part of the lot, including the dividing wall. Typically the perimeter of the building forms the boundary of the lot so the building itself is common property. However duplexes often lend themselves to a very simple strata title arrangement whereby the boundary of each lot is the side and rear fences, dividing wall and out to the driveway at the front of the building. You will still need to have a strata insurance policy, but there would be next to no other expenses as pretty much the only common property is the driveway. This keeps levies at the absolute minimum.

If your surveyor doesn't understand this concept, find another surveyor. PM me if you want to see an example of such a strata plan.

 

[Noviss]

I'm a bit unclear about what you are asking, especially in relation to the insurance? If Council dictates that the only way of separately titling the properties is by strata titling, and this therefore enables you to potentially access increased equity then you have no option.

My mistake, I think I'm talking about Body Corporate?

I'm going to strata title them, no problem, but do I necessarily need to set up a body corporate and do the annual meetings etc?

My reference to the insurance was that I was assuming that since there are common areas I wouldn't be able to insure them separately if they are strata'd? Or is insurance irrelevant?

However, make sure your surveyor draws up the strata plan with the absolute minimum common property.

Check. The only common thing will be the dividing wall. There's even enough room on each side of the driveway.

Depending on how the duplex is constructed, and sited on the land, you can make each side of the duplex part of the lot, including the dividing wall. Typically the perimeter of the building forms the boundary of the lot so the building itself is common property. However duplexes often lend themselves to a very simple strata title arrangement whereby the boundary of each lot is the side and rear fences, dividing wall and out to the driveway at the front of the building. You will still need to have a strata insurance policy, but there would be next to no other expenses as pretty much the only common property is the driveway. This keeps levies at the absolute minimum.

Cool, looks like I do need to set up body corp

If your surveyor doesn't understand this concept, find another surveyor. PM me if you want to see an example of such a strata plan.

My surveyor is really good http://www.shiresurveying.com.au/. I get all the strata plan stuff, just wasn't sure if I had to set up the body corp. I haven't seen him for a while so haven't asked him about that part of it.

Appreciate your help. Any more insight would be appreciated.

 

[Wake]

If you are keeping them both you don't really need to do anything in terms of setting up records except have the right insurance in place. You are the original owner so you decide that you will cover any expenses as they arise so no need for levies, meetings etc. Of course, once you sell one you need to put certain records together, including info relating to the building ie plans, warranties etc. But if this doesn't happen then its hassle free.

 

[westminster]

If you are the sole owner of all parts of the strata (once it is done) you can buy Strata Insurance but not need body corp etc.
I just did mine in Friday with CGU.
So from April my 3 villas were on one title and covered under normal insurance. My strata titles were released 2 weeks ago and I did Strata Insurance on Friday.

 

[westminster]

If you are the sole owner of all parts of the strata (once it is done) you can buy Strata Insurance but not need body corp etc.
I just did mine in Friday with CGU.
So from April my 3 villas were on one title and covered under normal insurance. My strata titles were released 2 weeks ago and I did Strata Insurance on Friday.

 

[Noviss]

Yep, I'm the sole owner. Thanks for your help everyone.

 

[Rolf Latham]

If you are the sole owner of all parts of the strata (once it is done) you can buy Strata Insurance but not need body corp etc.
I just did mine in Friday with CGU.
So from April my 3 villas were on one title and covered under normal insurance. My strata titles were released 2 weeks ago and I did Strata Insurance on Friday.

so u had your land subdivided before build ?

ta
rolf

 

[westminster]

so u had your land subdivided before build ?

ta
rolf

Me Rolf? The property I was talking about above was a build then strata in Westminster WA. The build was complete in April 2012 then applied for WA strata which got lost in council system then finally submitted to govt for Titles. They were released 2 weeks ago and then I got my Strata Insurance on Friday (I'd actually forgotten about getting it but Heritage need it for the secured properties)