I'm just closing up at the open home in Freshwater in Sydney and I thought I'd take this opportunity to explain a question or answer a question that someone asked me about. They were looking at buying a unit that was a company title unit and they made an offer on it and they weren't exactly. They didn't know what the difference was or the pros and cons and yes so they asked me to explain it because what they had learned afterwards was that it was probably good thing that their offer wasn't accepted.
So a company title is mainly for on properties in Sydney or New South Wales particularly Sydney and it was before strata plans we really became the norm for unit blocks. So a lot of the older unit blocks on the eastern suburbs Lower North Shore northern suburbs have still have company title and it's where instead of having a strata plan.
They bought the they basically had the title of the whole unit complex in a company structure and then shares were proportioned based on the size of each individual unit to each individual owner.
So that that's the basics of what a company title is for mainly units. There have been some small variations that people have used to as loopholes to get around being able to subdivide some properties but that was the most common the most common use of it is with these old unit blocks.
So advantages these days really the only advantage is that there's some loopholes that you can use for company title. The disadvantages to it. Well most the time. Yeah. It's harder to sell.
The values aren't necessarily as high as a strata plan as a result. You don't have as much individual control everything has to go to the committee usually and it's usually different.You have to go to the to the company structure to look at what the effective by laws are like in a strata plan. So there's a lot less individual control and it's something that you have to do a lot more research on. So yeah that's company title for you. If you have any questions please reach out to me about company title or anything else for that matter to do with property, property investing. In Sydney, Brisbane, Melbourne and anywhere else in the country.