How to strata title block of flats

Discussion in 'Adding Value' started by simonjulie, 5th Aug, 2003.

  1. simonjulie

    simonjulie Member

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    Hi all

    Can anyone please give me some clues as to how to go about strata titling a block of flats and how much it may cost.

    I am particularly interested in NSW, Qld, ACT and Vic but happy to hear any stories from anyone who has done this in any state.

    Thanks
    Julie
     
  2. Simon

    Simon Living the Dream

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    I looked into this here in Newcastle and the council were very helpful. I spoke to the duty planner at quite some length.

    From memory the application fees were remarkably low. I think around $250 plus $50 per dwelling.

    They required plans to be drawn up to be submitted as well.

    The expensive part was ensuring that the flats met the fire code. This might entail new exits, fireproof ceilings and things of this nature.

    I think there are commercial organisations who can help with all of this.

    Hope this helps a little.
     
  3. watto

    watto Slumlord Extrodinaire

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    G'day Simonjulie,

    I just recently completed a strata title project in Tassie.

    I used a local Land Surveyor company to do the job. Total costs including all council and government costs ran out to around $8500.00.

    The surveyor quoted approximately 6 - 8 weeks to complete the task, they failed on this point but the job was completed eventually. Partly my fault i should have kept on top of them, but i was busy completing the fitout of 2 of the units being strata titled.

    Both of these tasks were done over the phone from interstate, a very steep learning curve for me.

    Things to watch out for are hidden fees and charges from local councils and state governments. Time management can be critical as well as i ended up running into refinancing troubles due to delays in completing the strata.

    One critical factor for co-joined dwellings is that the adjoining firewall extends through the internal ceiling to the external roofing.

    Even with all the delays and frustrations the exercise was well worth the effort as a valuation shortly after completion resulted in an equity gain of $300K +.

    Cheers
    watto
     
  4. geoffw

    geoffw Untitled

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    I've recently looked at strata titling a block purely for increasing the valuation- I'm not intending selling at this stage.

    For me in this situation, the big killer was the extra rates which would be incurred. The block is 9 1BR units, and rates are about $4K pa. If they were strata titled, the rates would be (at least) doubled. That makes it just not worth while to me. The extra valuation might stretch to $100K in extra equity, so that's an extra 4% pa on top of what I would be able to borrow. The numbers just don't add up.

    If I was going to sell, then it would have been worth while. I think it would have cost $4K- though I sort of turned off after I heard the extra rates involved.

    Queanbeyan attorney Baker Deane & Nutt provided me with the initial advice. I had previously sought advice from "Pappas J" with advice which I was not in the position to follow up on.

    I did not even need to follow up on body corporate setup and continuing fees.

    A local solicitor in the area you are looking at should be able to provide you with some preliminary advice at no cost.

    I'd be interested to know what other advice you may receive,
     
  5. Gill Bates

    Gill Bates Member

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    re... extra rates ... for strata flats

    In Brisbane u pay a higher rate for the Water ( about 10 % extra )
     
  6. simonjulie

    simonjulie Member

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    Hey guys

    Thanks for your replies. It is helpful to hear your stories.

    If I am buying to hold for cashflow I may not bother strata titling them unless I intend to sell or unless there would be a big difference in valuation for refinancing down the track, but it is good to understand what is involved a little better.

    Cheers
    Julie
     
  7. ozdog

    ozdog Member

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