Strata Title and Body Corp setup costs

Can someone help with the following I have done a search but couldn't find exactly what I was after :

We have been waiting eight weeks so far for bank loan approval to build a new detached house on a corner block in SE Qld. The sticking point with the lender at present is that they want to see proof that we will strata title the detached two house site.

We were going to leave them on one title on completion to save council rates costs, but our builder/developer has told me that as of Jan 2011 their will be a law passed (I think something to do with local govt, but not sure) which requires multiple dwelling developments to have to strata title duplex and multi dwelling developments. At present someone could own 22 units under one title and pay minimal rates, ... which means local councils are missing out on a pile of revenue.

The rumour is that by bringing this law in, it should reduce the amount paid in contribution and header costs currently charged. Yeah right! .... Is this going to be like stamp duty and other fee's and levies that were supposed to be removed when GST was implemented?

Anyway ... this leads me to my question: does anyone know approx how much it costs to strata title a two house dual occupancy site? The builder I'm using said that it will be no more than $5,000 (surveyor $2500-$3000, council fee $600 and lawyer $600-$700 for paperwork and registering titles).

The bank wants this done to give the project a higher end value to lower there risk .... unbelievable .. It is a 60% LVR deal, ... what risk! .... Anyway, we will get the strata title done as it looks like by Jan 2011, it will be enforced anyway.

Also, ... would we have to setup a body corp or would we be exempt as its a two unit site? If so, what sort of cost?

As far as services, ... it is a corner block and each house will have separate connection for services and will be stand alone with dividing fence and separate road/driveway access and no common area (it's basically a subdivision).

Finally on the banks/lenders making it more difficult to get loans. The lenders are picking and choosing very carefully what risk they take on .... We have had a simple loan application for a 60% LVR loan in since the 28th April and they still haven't given final approval.

Appreciate any info given

mystery
 
I would say minimum 5k Mystery. I have paid around 6k in NSW and the current one I am doing will be about the same. Not sure about Qld

There will be some unhappy folks around if they enforce the strata splitting of all multi dwelling sites. More money grabbing. I have an unstrata'ed duplex that I have council approval to split (just not registered) but will only do it if I need to ever sell one - or if I'm forced :mad:
 
I would say minimum 5k Mystery. I have paid around 6k in NSW and the current one I am doing will be about the same. Not sure about Qld

There will be some unhappy folks around if they enforce the strata splitting of all multi dwelling sites. More money grabbing. I have an unstrata'ed duplex that I have council approval to split (just not registered) but will only do it if I need to ever sell one - or if I'm forced :mad:

Not so bad for strata titling a duplex if you aren't going to sell it. It is not as if you are saving bundles such like a multi unit dwelling. Still I take youre point Rockstar....There is no need to do it if you are holding the asset.

I am in process of strating a duplex in SEqld. The additional costs for turning it from 1 lot to two lots is a miserable fire levy fee which equates to something like $35 a year (I think thats about how much it is??) I enquired about this a few months ago to the council, considering I was going to sell one of the units. (i.e. therefore needing it to be stratad).

Anyway, my costs sofar are:

Surveyors Fees - $3400
Community Management Schem Set Up (and produce plan) - (haven't got invoice yet - told about $400)
Lodgement of plans and scheme to council (via surveyors) - $800

I picked up sealed plans (endorsed by the council), today, so will see solicitor on Monday for sending on to DMNR (or who ever they are called these days). Told this would cost around $600.

Will then get titles sent out in mail and job done.

Therefore a total of around $5500.

Cheers,

F


Also, ... would we have to setup a body corp or would we be exempt as its a two unit site? If so, what sort of cost?

Mystery,

Don't need to endorse a body corporate if you have less than 4 dwellings on the site. (It is something like this) Dont need it for two though.

I am sure someone will correct me and set me straight.

Cheers,

F
 
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