I presume you meant strata title....you mentioned before it was already purple, or company title.
Sorry yes meant Strata Title
...and as you'd know, with company title, for absolutely anything to be done on the property, it must have the support of 100% of the shareholders. One 'stick in the mud' who refuses to agree, and she's ALL STOP.
That's why I asked how many shareholders are in the company.....you didn't answer.
There are 9 shareholders. 1 for each apartment except 1 apartment where there is 2
That's also why Banks are extremely reluctant to lend on company title, as they cannot mortgage a title without everyone's approval. Old people who own their share holding outright won't allow Banks to do their normal "bend over and cop this" routine..
Yeah we had that problem so paid $235,000 18 months ago in cash.
I'd strongly suggest you go through the pain of convincing / cajoling everyone who owns a portion of the company to upgrade the building (could be 100's of K to get it up to today's building standards...they are onerous) and then reap the capital gain yourself.
Everyone is keen on getting it done, however are very hesitant on outlaying the $5000 cash. We went to the effort of gathering examples of personal loans for $5000, what the weekly/monthly repayments would be and then what they would be once the complex has been changed to a Strata Title due to being able to transfer it to a home loan rate. Most of the owners are retiress who are happy just getting the $300 a week rent. They are in no rush to realise the $30,000 - $50,000 gain that they would get if the complex was changed to a strata title. Things are getting done but slowly. Being 23 and having $250,000 odd of cash tied up isnt something I am happy about.
I probably should have looked at the average age of the Occupants before I purchase but the potential Capital Gains blinded me.
We have had a structual survey and he highlighted only a couple of very small problems like smoke alarms and RCD's and 1 larger problem which is the concrete cancer where the balcony ballastrades are held into place. We have had a quote of $9000 to fix this.
We estimate that the cost to each apartment to get the complex changed to a strata title will be a maximum of $5000 this equates to $40,000 for the whole complex. This covers the extra car parks, pulling out of the large tree, the concrete cancer, the smoke alarms and RCD's, the splitting up of power connections (done last week), and the Strata application fee
Good luck in Perth doing that at the moment, she's a buyers market and Sellers are copping a hiding at the moment.
Agreed. Will be putting up another property for sale in the next 4 or so weeks.
I wouldn't be surprised after taking into account all of the headaches with getting old people to agree, then spend all the money to convert to strata, then subject yourself to the worst Seller's market in Perth in 15 years that you are actually heading out the back door.
On reflection - I'd be selling it off as "amazing" as well..
We purchased for $235,000 and really cant see it going for less than $300,000. 2 bedroom apartment in similar condiiton block on a main road sold for $315,000 2 weeks ago. I would be asking from $300,000 which should gather some interest as every other 2 bedroom apartment in Innaloo seems to be asking $320,000+.
Just another question with the Lease expiring - do you have official written permission from the other owners to be able to lawfully lease it out ?? Most shareholders in purple titles insist on Owner Occupier only. When we looked at one as an investment way back in the dark ages, that was the sticking point for us. Having some old fogey dictating to us that we couldn't rent it out made it a NO GO. What's the status with that ??
No we dont. There is a written agreement that must be signed by each purchaser that states they have no say in who rents out each apartment. We were renting to a home west tenenant.
Sorry about the grammar, poorly constructed sentences etc. Flat out at work today.
