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Hello,
Been looking for a while for an apartment in Sydney’s east.
We’ve finally located the perfect place for us, only to find a big potential hitch when we read the strata report.
A number of the owners have got together and submitted a formal proposal for a collective sale.
The strata committee has “opted in” to the process and formed a strata renewal committee to investigate further. (So they are up to #3 in the process, as outlined at the Fair Trading web site: https://www.fairtrading.nsw.gov.au/housing-and-property/strata-and-community-living/strata-schemes/collective-sale-and-renewal)
We are wondering if it would be wise/unwise to buy into a building when this process is underway, but as yet undecided.
The real estate agent is hard-selling us on the potential of a “huge” windfall if the collective sale goes ahead, but we would probably lose at least some of this – because we would not be able to live in the apartment straight away. It has tenants in place until May net year, so I guess if there was an eventual sale, we would lose some of that in capital gains tax.
Anyway . . . it’s all sounding a bit too complicated for us, but I would certainly welcome your thoughts. I am sure there are people here who know far more about this than me!
Cheers.
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If it was so good why are the owners selling it, and why has the agent not bought it himself? But, these things don’t always get off off the ground so how would you feel if it did? Would you potentially make a few bucks but miss another opportunity you could have gone with hassle free now? And if it does what will you do next? I’ve learnt not to do things for money only as they never mostly come off. It’s an interesting dilemma.
I would want to know why the rest of the owners are thinking of selling. Is it opportunistic or are there problems that they have been keeping quiet (until your vendor has sold) that they can’t afford to fix?
The tax issue is a trade-off and you should get advice on that. But I would be asking your conveyancer for a forensic study of the strata minutes before getting the chequebook out. And talk to the other owners if you can – they might know why the vendor is selling at such an odd time.
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
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