strata or company titled? Does it matter?

Is there any problem with buying Company titles apartments?
I see here in Sydney City a few Company titled apartments for sale.

Are they not attractive to investors and the reasons why ?
 
There is nothing too much to be worried about. Generally speaking a whole property is owned by a Pty Ltd company. The apartments are owned by people by their share holding in the company. A simplistic example would be that in a building of say 6 units, each of the owners would own 1/6 of the shares in that company. It really is no big deal. However, some lenders do not like company title. There can be traps just like there can be with body corporate in strata. You'd need to chat with a solicitor + your banker about their attitude to company title.
 
Also, in some older buildings (at least in Sydney) the company title owners have restrictions on tenancies for example.... just ensure your solicitor reviews any limitations here and you are 100% aware.
 
Yes, there is a big difference. Max LVR on company title is generally 80% with a few lenders going to 85%.

More paperwork needed for finance too.

Harder to finance means harder to sell.

On the legal side any disputes mean straight to the Supreme Court which is more costly. Strata disputes may be heard in a lower court which is less costly.
 
Last edited:
Back
Top