Moiety Title

[bernly]

I've just found a thread from 2002 discussing unit v houses and the different titles involved. We are looking at buying a 1960's unit in a upmarket area in Adelaide which is on a Moiety Title. I was very apprehensive as I remembered a neighbour decades ago having a property on a moiety title that precluded a lot of potential buyers.

I gather that with moiety title the purchasers of dwellings all hold an equal share of the land and then each individual dwelling is leased back to the purchaser. The good thing is that there is no Body Corp, no management fees and the only shared expense is water. This is a small complex and extrapolating on the asking price of our unit the land value is more than the combined value of the dwellings. The downside is that most banks will only lend from 40-60% of the valuation and some institutions won't lend at all. This actually works in our favour as we are cashed up atm and are confident of having a lower offer accepted. We don't intend to onsell in the foreseeable future and will use it for our own needs. I expect that it will always be a good rental property if our needs change.

Anybody got any stories about moiety title experiences???

Cheers

 

[Rob Williams]

Debbie Williams wrote an article in Your Investment Property magazine a while ago regarding her strategy with Moity titles. Interesting reading and that strategy would work well for you, given you're all cashed up
From memory, she buys at a good price, given the difficulty vendors have selling, then sets to work converting them to community title. After that, you can get a revaluation done and pull some equity out of the deal, if that's you're thing.
I was quite interested in that strategy. Keep us informed of your progress.

 

[csc]

...crikey! ill get back to you with a reply when i can get my mouth to pronounce "moiety" properly...let along know what it means....sounds like an upperclass cafe for snobs at bondi!


live and learn with new info on this forum every day...

 

[JoannaK]

i've never heard of this, but sounds very similar to company title...