The ultimate advantages of transforming freehold residential land developments into a Community Title Arrangement.
Is the great Australian dream finally over?
For many Australian’s, owning your home is considered a rite of passage.
So, has it become less of a right and more of a privilege?
Recent events surrounding the COVID-19 pandemic have placed greater emphasis on what it will mean to foster equitable cities, communities, and villages.
It is now time for investors and developers to place additional importance on nurturing neighbourhoods and living in a community arrangement.
So, with this being said, what has the COVID-19 pandemic demonstrated to us thus far;
- There will be a rebalance in the CBD, as big businesses decide to relocate their offices and employees to suburban areas
- Supporting culture and creativity, what it will mean to ‘live locally’
- Equality through cultivating neighbourliness and urban resiliency
With consideration of the above, it is fair to presume that community titles schemes (strata) will become more prevalent, not only in the CBD, but in suburbs generally synonymous with the ideology of the Australian Dream. The decision to structure these freehold land parcels into a community titles arrangement will provide the following benefits-
- Property Upkeep – Within a community title scheme, a legal entity called the Body Corporate Committee handle the day-to-day operations of the building or property. They schedule regular maintenance and arrange for necessary repairs. This relieves individual owners of the burden, allowing them more leisure time. The Body Corporate Committee can engage property professionals from facilities managers to gardeners, to deliver a high quality and value for money outcome to all owners.
- Use of Amenities – Amenities could include swimming pools, gymnasiums, children’s playgrounds, band rotundas, running tracks, community gardens, dog off-leash areas, covered BBQs, shaded picnic areas, shared laundry facilities and even vibrant community centre. Community title property owners enjoy inexpensive access to a wide variety of luxury on-site amenities as part of a shared ownership scheme.
- Sense of Community – When buying into a community living arrangement, you are buying into a close-knit community of neighbours that share your considerations and concerns. Scheduled meetings and organised social occasions are regular events in many community title structures.
- Security – The Body Corporate are responsible for the security of common property. Closed-circuit television cameras, swipe-card access, electric door buzzers and secure parking are a popular option for protecting common property and the possessions of owners. Installing such devices provide residents with the peace of mind their home is safe and secure.
- Lower Land Tax and Council Rates – A portion of Council rates are based on a property’s unimproved value, as assessed by Government, and based on recent sales. Because you only own one portion of a larger building or subdivision with a community title, you only pay a fraction of the council rates and local service fees you would as the sole owner of a freestanding property.
- Lower Insurance Costs – With the economies of scale provided by community living, you are likely to end up saving on insurance premiums compared to what a sole owner would pay for similar coverage. The benefit from strata insurance comes in the form of a bulk policy discount. For example, owners will pay a cheaper rate per million of building sum insured for a policy worth $20million then for one worth $750,000 to $1million. This in itself will present a direct advantage to owners.
- By-Laws protect assets and enhance community living – Strata by-laws are managed by the Body Corporate Manager. They dictate the rules and regulations of a complex or community. Such by-laws are what will help determine whether a community arrangement is the right fit for your lifestyle – or investment portfolio.
These reasons provide community living is becoming the preferred option for many buyers and developers. If you would like to learn about the further benefits of community titling your next freehold land development, please do not hesitate to give us a call on the below.
0411 352 409
0423 874 987