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If you own or are considering buying a unit, townhouse or villa, chances are that it will be administered by a strata title or a company title.

Prior to the 1960s, it was standard for units to be bought and sold within a company title. It allowed people to buy a unit rather than a house and provide for separate shares of the space within the one property. These shares give you exclusive use and occupation of the unit. It is however increasingly rare as most buildings convert to strata title due to the many benefits it offers.

Strata title was introduced in the 1960s to give legal ownership of a portion of the building. It is suitable for both residential and commercial properties.

Naturally, both strata and company titles are legally different. They come with their own list of pros and cons which also varies from state to state. It is vital that you gain advice as to the financial and legal implications of owning either type of property.

Strata Title

Cons

• Owners are required to pay quarterly levies to manage, insure and maintain the property, vote at AGM’s and abide by any bylaws (not really a negative but it is something to consider).

Pros

• It is a trusted, fair and transparent system used by almost all buildings.
• Owners get an equal vote on large decisions.
• There is a clear surveyed diagram showing which parts of the property are common areas and which are owned by individuals.
• Properties under a strata title are generally worth 10% to 20% more than properties under a company title.

Company Title

Cons

• It can sometimes be difficult to borrow to purchase a company title property with some lenders requesting a larger deposit to buy. This then lowers the risk to the bank on the property value.
• Owners don’t own the property title, instead, they own a share in a company that owns the title.
• They can be slower to sell than strata title properties.
• Company constitutions can limit who can buy into the property if the property can be rented out and even what changes can be made.

Pros

• Investors may make money if purchasing and later the company title is changes to a strata title, adding instant value.
• Properties can be cheaper to buy.

There is also another option – Stratum Title – This is a combination of both of the above with the owners having a property title and a company owning the common property.

Select Conveyancing Lane Cove is here to help you every step of the way with your property purchase or sale. Contact us today to discuss your needs. 

In our last blog, we wrote about a certificate of title is and the security features of this title.

As part of buying a property, your conveyancer will complete a title search of the property you are looking at purchasing. This title search will reveal key information about the property so that you can make an educated decision about the purchase.

A title search shows

Who owns the land – Your search results will include the name of all landowners. On the occasion that there is more than one owner, it will show the type of ownership. This may be tenants in common or joint tenants.

If there are easements – Should your property show an easement, this is a right of way given to another who does not own the property. This right of way gives permission to use the property for a specific purpose. Or it may be for service access allowing workers to access drainage in your backyard. Having an easement can restrict your use of the land and may prevent you from building in that area so it’s important that you’re aware of them before you buy.

If there are caveats on the property – A caveat shows that someone else has an interest in the property. If someone has a potential claim to part or all of a property, they may lodge a caveat, which prevents the owner from selling their property clear and free. A builder may put a caveat on a property if the owner owes them money.

If there are covenants – A covenant is a guideline or restriction on the land that can limit what can be built on it. It may also restrict where it can be built and from what materials it can be built with.

If there are mortgages on the property – When there is a mortgage on the property, the bank holds the Certificate of Title, rather than the property owner or a solicitor. The mortgage provider will be listed on the title. As part of buying and selling property, any mortgage will generally be discharged at the property settlement.

Should you have any questions about performing a title search on a property or your conveyancing requirements, please contact Select Conveyancing. 

A Certificate of Title is the official ownership of a property and is issued by the Registrar of Titles in NSW. 

A Certificate of Title is a copy of the related folio of the Torrens Land Title Register that is issued by Land and Property Information (LPI) to the registered proprietor, mortgagee or chargee. A current edition of a Certificate of Title will normally detail title information including the name/s of the owner/s, the lot/plan numbers and other registered interests on the title such as mortgages, easements and covenants. Source: NSW Government Land and Property information.

If you do not have a mortgage on your property you may have this paper in your possession. When it comes to selling your unmortgaged property you will need to provide the Certificate of Title as proof of your ownership. Without this certificate, you will not be able to sell your property.

Do you know where your Certificate of Title is?

Has it been lost or are its whereabouts are unknown? The application of a replacement can take some time so it is wise to do this early in the selling process so that when you have a buyer your property can settle with ease.

Security features

Since 4th January 2004, there has been the introduction of security features within every certificate issued.

Security features were introduced due to an increase in identity fraud. Due to the availability of scanning and printing technology it has made it very easy for people to fraudulently produce many different types of documents. This includes Certificates of Title.

Certificates of Title produced prior to 4th January 2004 do not include security features. Additional measures need to be taken to verify the identity of people who have possession of a Certificate of Title prior to this date.

The security features include and vary throughout the years since 2004:

• Security trust seal
• Certificate Authentication code
• Fine line pattern
• Two barcodes
• End of certificate noted
• Certificate of Title printed on the side in brown
• Specifications of 120gsm paper
• Watermark
• Sequential numbering
• NSW state emblem
• Microprinting
• Silver seal
• Background printing

If you have any questions about your Certificate of Title please contact Nicola at Select Conveyancing Lane Cove. 

There is no doubt that the real estate market has been affected in 2020. Covid-19 has seen real estate move to online Auctions, For Sale only negotiations and property inspections by appointment only.

While restrictions are easing and home inspections are beginning again housing prices and rental prices are feeling the pinch. There are many factors that affect house prices and you may be able to get a great purchase in 2020. If you are selling you may still be able to sell for a great price depending on your property, price and its location.

Can you buy

If you have job security and a preapproved mortgage during this time you may be in a great position to buy. In the short-term, the property market has lost a little momentum. Prices have stalled and potentially dropped in some areas.

The economy too has seen a negative impact including employment in many areas. This impact is affecting the rental market as many people cannot afford their rent and landlords have had to bear a significant drop in their income.

If you are looking to buy an investment property, prices may be good but your rental potential may not be as you would expect.

While looking to buy you may also notice less competition as many buyers have been taken out of the housing market search due to their job insecurity.

Do you have to sell

2020 may not be the best year to try to sell your property. The market is weaker than in 2019 and it will again strengthen in 2021 so if you can postpone selling this may be a wise choice. However, as mentioned above you may have a property that is not too adversely affected by this market. Or you may have no choice but to sell and work hard to get the best price for your property. Make sure you gain great advice and do your research to ensure that you are in the best position based on your circumstances.

Across Australia

Every state and suburb is being affected differently during this time. Make sure you do your research and property checks via your conveyancer as normal. Not doing these checks and purchasing with the thought that you are getting a bargain could show up with dire consequences. Now maybe a good time to buy but it is not a good time to cut any corners.

For all your conveyancing needs contact Select Conveyancing Lane Cove.

While we are within the current COVID-19 restrictions property selling and buying is a little different.

• No in-person auctions
• No open house group inspections

While these changes make the landscape a little different you can still arrange private inspections and private sales. There are positives to these changes and we can adapt to this new way of doing things for the time being.

Here are some tips:

Continue to shop around – While there may not be as many properties listed you still need to know what the marketplace is doing in your chosen area. Do your research and make sure you are knowledgable on reality. Don’t just focus on what you feel like is the correct price for a property.

Arrange an inspection – You’ve seen a property that interests you and you want a closer look. Contact the agent and arrange a private inspection of the property. Utilising your knowledge you will be able to determine both if the property is suitable and how much you would like to offer. Make sure to ask:

• Why is the property being sold
• Is the seller in a rush to sell
• Are other people interested in the property, how many and are they, owners or investors
• What price are the sellers hoping for

How are the offers going to work – Ask the agent for the property how they are going to process any offers with the property owners. Confirm these details with your conveyancer.

Making an offer – Find out if there have been other offers which may have been turned down. If you are very keen to buy make sure you don’t make an offer that is too low, insulting or one that may be too low for the seller. Remember that there may be another buyer ready to pay more and if you waste time you may miss out altogether.

Ensure you are ready – If you do make an offer, you need to be ready to proceed with a deposit and your finance in place.

Conclusion – If you have any questions, please contact Nicola at Select Conveyancing.

Searching for a property and finding the right property is an exhausting task.

Putting in an offer is a nerve-wracking exercise and waiting for your offer to be accepted or countered seems to take forever. Know that the first offer you make is not necessarily going to be accepted. It may take a few negotiations back and forth before you reach a resolution.

How much to offer

Do your research thoroughly on both what the property is worth and what your upper limit is to secure the property. Remember that you may not be the only one submitting an offer. If you really want the property you should submit your best price and try not to insult the owner with an extremely low offer. The owner has the choice of who they wish to sell to and insulting people may mean that they reject you completely.

Speak to the real estate agent about the interest in the property, however, remember that they are working for the seller and not for you. They want their owner to get the best price so they have a happy client.

Speak to your Conveyancer

When you make an offer on a property it has the possibility of becoming legally binding. If you have made the offer in writing via a signed contract of sale and the seller agrees and signs it, the property is sold. You need your conveyancer to ensure that everything is going to proceed legally and correctly. They can ensure the contract has everything detailed correctly and there are no surprises.

Conditional or Unconditional

Sales can be conditional to finance or inspections or they can be unconditional, without any conditions. Generally unconditional is more attractive to a seller as they know that the sale will not fall through without penalty against the buyer. Note: If an unconditional offer does fall through you will likely forfeit your deposit to the seller. Making an unconditional offer may see your offer accepted over a higher but conditional offer on a property.

Conclusion

Making an offer on a property is not difficult and it can be far easier than the stress of an auction. Good luck with finding your perfect property.

Contact Select Conveyancing when you are buying your next property.

One of the best ways to make buying a property more affordable is to buy it with another person. Your partner, a sibling, a friend, a parent etc. and with that, there are several important things for you to consider.

Type of ownership

When you choose to buy a property with another person or several people there are two options.

Joint tenants – as owners you own the whole of the property together and is generally used for couples. The right of survivorship applies so that if one owner passes the ownership is transferred to the surviving owner.

Tenants in common – shares in the property can be equal or unequal in size. If any of the tenants was to pass away the share is to be dealt with as part of that individual’s will and estate.

Foreign owners

When you are buying a property and one or more of the buyers are foreign you need to apply to the Foreign Investment Review Board for approval. When the purchase is as tenants in common then application fees and a foreign surcharge duty may be payable. If you are buying with your spouse then the circumstances change as you will be joint tenants. Ensure you have professional advice based on your circumstance.

Taxation

When you are investing in property with another person is wise to get tax advice. Getting tax advice first ensures that you are maximising any future tax deductions relevant to the property when it is an investment. Only your taxation professionals can provide advice as they know your circumstances.

Legal agreement

If you choose to buy a property as tenants in common with another person it is smart to create a simple legal agreement. This legal agreement can cover the rights and obligations of each of the owners of the property.

So, should you buy a property with another person

When you are buying a property it is important to look after yourself legally and financially. If you would like specific advice tailored to your circumstance please contact Select Conveyancing Lane Cove. 

Note: Every circumstance is different so this article is only general information not specific to any one purchase.

If you have owned your home for a little while, chances are you now have equity. You can use this equity for many things including buying a bigger home.

Equity = The difference between the value of your home and the balance of your mortgage. eg. If your home is valued at $1.5 million and you owe $600k you have $900k in equity. 

Make sure you seek independent advice before making any decisions about your equity.

Ways to use the equity

Sell – You can sell your home and use that money to buy your next property. Upsize to a larger home or to another location to suit your family.

Keep – Keep your home as an investment and use the equity to provide a deposit for your new home. Rent out your original home to pay back the mortgage of the 1st home.

Keep – Use your equity to buy an investment property. You won’t have to move but you can still grow your property wealth.

Renovate – Borrow additional money to renovate and increase the value of your current home using the equity.

Check your numbers

Selling or keeping the banks will still evaluate your ability to pay back any mortgage you have. They will look at your expenses and the potential income you may have if you keep your property as an investment.

Know your own budget and down get too carried away with what you are planning.

Utilise professionals

Financial advisors, mortgage brokers, conveyancers and more all can help you ensure that you know the costs involved in what you are planning.

You don’t have to move

If you love where you live then renovate make your home better or use the equity to buy an investment property. Do what is going to work for your family and your circumstances, there are no set rules. Equity just gives you the freedom of a few more choices.

Naturally, if you are buying or selling we would love to help, contact Select Conveyancing today.

If you are fortunate to have an investment property, landlords insurance is a must-have.

Having landlords insurance is not a just in case you get the ‘tenant for hell’. Or your tenant decides to vandalise your property and leave you with a large damage bill. This is just part of the reasons you need it.

Freestanding house – If you have a freestanding house that you are renting out you will need landlords building and contents insurance.

Strata Title property – If you have a strata title property then you need landlords contents insurance as the strata insurance covers the building.

Damage

• Extreme weather can cause flooding to your property
• A tree may fall onto your property
• There may be a fire at your property
• Earthquake or storm damage
• A tenant leaves without notice and rent owing (rental default coverage)
• Faulty wiring or plumbing causing an injury
• Burst water pipes
• etc…

Coverage

Speaking to your insurance broker or insurance provider you can ensure that you are covered for everything you need or want to be covered for. Curtains, blinds, carpets, kitchens and bathrooms are all expensive to replace and a simple burst pipe can damage all these items. Unpaid rent, the need for your tenant to be rehoused and more can all be a part of your insurance coverage.

It is vital that you have a valid lease in place and you have regular property inspections so that if you need to claim it will be accepted by your insurance company.

If you are thinking of buying or selling an investment property – contact Select Conveyancing for all your conveyancing needs.

Note: This article is not providing advice it is just a suggestion to speak to your insurance professional to ensure you have the coverage you need. Speak to your current provider or speak to an insurance broker to ensure you are covered.

The vast majority of Australians are choosing their home-based on their lifestyle.

So, if you are considering buying a property what are you taking into consideration?

According to a report by RealEstate.com.au about life in Australia, the number one consideration for people is safety.

9500 people were surveyed to find out that the five most important attributes Australians value include feeling safe (67%), high-quality health services (60%), affordable decent housing (58%), good job prospects (41%) and reliable and efficient public transport (33%). In Sydney however, these results were a little different with feeling safe (63%),  high-quality health services (57%), affordable decent housing (57%), reliable and efficient public transport (46%) and good job prospects (36%).  not to mention it came in at the 7th most livable city.

Buying a home is about the lifestyle

Once upon a time in Australia, the dream was about having your very own quarter acre block. It was deemed as being the great Australian dream, with houses only taking up a very small portion of the block, it was all about having a piece of land. Having a large garden where you could grow your own produce and have a lawn for the backyard cricket match.

Within Sydney, a block of this size is almost unheard of as most have been divided up to add more and more homes. The demand to live in Sydney remains high even though the report mentioned above rates is not as livable as other cities.

Without having a large plot for your home it is all about the lifestyle. Being close to schools, cafes and amenities outweigh the need for a large block of land, we are happy to settle for a courtyard space. All this nearby activity provides us with a feeling of community and a feeling of safety.

The news provides us with a constant report of suburbs and associated crimes rates which also helps buyers to choose an area that is deemed as safer than perhaps another. This constant reporting is much higher than it used to be so while crime rates are down, the reporting of crime is up. This reporting gives us all a perception that our lifestyle is in jeopardy. How do you feel?

Becoming a local

To enhance your lifestyle at your new home you want to become a local and discover the places to be and the things to do in your new neighbourhood.

• Go for a walk or a bike ride
• Take your children or fur children to a local park
• Chat with your neighbours
• Sample and then pick your local cafe
• Shop local
• Look for local events

So if you are looking to buy into a new suburb – how will you decide which one you choose?

Make sure you contact Select Conveyancing to ensure your purchase runs smoothly for the lifestyle you are looking for.