Is it a requirement to set up Body Corp - Brisbane

[Ace in the Hole]

I've been through this before, but still not 100% clear.
We've got a 6 townhouse development finishing soon.
Will get them strata titled and hold all.
Insurance company says this is all we need to get cover for the properties.

Is it necessary to set up a Body Corp?

We went through this with a similar development completed 12 months ago (holding all), set up Body Corp, but I have not even looked at it and it doesn't seem to be needed.
But at the time, all the advice I had received was that we must have a letterbox for Body Corp and set up a Body Corp.

Can anyone say for certain what the requirements are?


Thanks

 

[Scott No Mates]

If you are the sole owner then there is no requirement to set up a body corporate however that changes as soon as you decide to sell one unit.

 

[moyjos]

Why bother strata-ing if you are not going to sell. Seems like a redundant move?

 

[Scott No Mates]

But you do get to pay more in council rates

 

[Ace in the Hole]

Why bother strata-ing if you are not going to sell. Seems like a redundant move?

Because I want to get my cash back out after construction complete.
In one line, bank will probably value at least 1/2 mil lower.

That is the only reason I have for now.

 

[moyjos]

Because I want to get my cash back out after construction complete.
In one line, bank will probably value at least 1/2 mil lower.

That is the only reason I have for now.

. 1/2 million reasons to strata then.

 

[Rolf Latham]

Why bother strata-ing if you are not going to sell. Seems like a redundant move?

Depending on the deal,and location etc, AND if the valuer had a good or bad day. a 20 to 30 % discount for All in one line vals vs strata is not uncommon.

Thats serious biscuit equity if the development is worth anything over 500 k


ta
rolf

 

[mattnz]

I recently discovered another reason to strata title, the council picked up new issues that needed to be resolved to get them strata titled (these weren't an issue for the private certifier for occupancy). Its better to get it done when the builder has recently completed the development. Much harder to get them back 5 years later to resolve.

Another reason is that the requirements may change over time. I wouldn't want to be battling with the council to get your strata done if rules change in any way that means you suddenly don't comply.

 

[Rolf Latham]

Another reason is that the requirements may change over time. I wouldn't want to be battling with the council to get your strata done if rules change in any way that means you suddenly don't comply.

Not dissimilar to my view of "borrow money when you dont need it".

ta
rolf

 

[AlmostBob]

$half million reasons
reg changes
builders
option to sell

Thank you all, going to recheck the requirements for me to strata 2 buildings, our friend "Justin Case" gets around a lot recently