Saturday, February 28, 2015

Company Title - Is it different from Strata Title?

I came across this "Company Title" term when looking for a property in Australia particularly for apartment property. It seems like not all apartments are strata title, some of them are actually company title. What are the differences?


Company Title vs Strata Title

  • Unlike strata, you actually do NOT own the title. The company owns it and gives you the share so that you have the rights to stay on the certain areas of the property (e.g. house unit). 
  • If you want to sell your property, you're required to get the approval from the board of directors of that company. For Strata title, you can decide whether you want to sell it or not by yourself and you do not required to get approval from anybody.
  • Getting loan from bank is harder for company tittle as compared to strata title due the appreciation value.
  • Company title properties are usually cheaper, I guess that is the only benefits. What else?
  • It is also easier to address issue with the management of the company title as compared to the strata title manager? I'm not sure how true this is and I personally think they're the same. 

Given the only benefits of company title is "cheap", I'm not favor in buying company title property. Also be careful of buying an apartment, don't always assume it is always strata title!


P/S: I"m not sure if Malaysia has such thing. I know there is an investment scheme to own a property or hotel and you're giving some kind of shares too. Maybe that is a similar thing? For apartment buying in Malaysia, the common trap that we want to avoid is commercial title unit - see my previous post here.

Friday, January 02, 2015

Living Expenses in Sydney For 2 Adults

If you wonder how much living expenses in Sydney, this is the right place for you. I have started to track my expenses since January last year and I think it is good time now to share with you so you have general idea how much you need to prepare if you want to live in Sydney.

This is my living expenses last year, the total expenses for the entire year is $54.7K.


The start up cost is around $8K as you can see that in January. Majority are for rental bond and also buying some furniture. I rent a studio for $520 per week (includes water, electricity and gas) located in an extremely convenient place. I can walk to office and I can buy everything that I want within very close walking distance.

Starting from February to April is the living expenses for one adult which costs around $2.8K per month. Starting from May, the living expenses are for two adults. To average the living expenses from May to Nov, the living expenses is around $4.4K per month. The good thing about having couple is you don't multiply by 2 from the living expenses for one person! :)

Note: I don't include the expenses in December  because that is vacation expenses that we had in Adelaide for around 8 days. That's why you see the sudden jump in December! :)


Living Style
  • One adult walks to work and another one travels to work by train (less than 1 hour including walking)
  • Do not own a car, travel with public transport most of the time
  • Bring lunch box to office every day, eat out only when there is special occasion (every quarter perhaps)
  • Cook dinner most of the time and eat out occasionally, 2-3 times a week approximately
  • Travel to new places within the New South Wales state (i.e. NSW) during weekend with public transport (~ twice per month)
  • Travel out of NSW by rental car in mid of the year (just 1 day) and travel to Adelaide by flight in the end of the year (8 days)
  • Back to Malaysia for vacation once a year

Let's break down the expenses:


Housing is rental which consists of 55% of the total expenses, followed by food (18%), transportation (10%), leisure (6.8%) and the rest of the spending are less than 5%. As you can see, rental is expensive here unless I want to move out from city but I will spend more on transportation and time. So it may not worth it.  

Further breakdown by food, transportation and leisure below:


Food is quite optimized already since majority are from Grocery unless we don't eat outside at all? Maybe just simply eat less, I think I eat a lot which is not really good for the health. 



"Transportation G" stands for transportation general. I think those are car rental expenses including fuel. Maybe that can be cut down but I will need to cut down my vacation.



Leisure spending is mostly related to vacation. :)


Summary

My yearly expenses is $54.7K, assuming worst case that you don't get a job in Sydney for a year, you will need to spend that amount of money. It should be lesser since you don't travel like I do now. So I will say $50K expenses per year should be good enough for 2 adults. If you convert that to MYR, it is around ~RM150K.

Let me know if you have any questions, I am happily to share that with you. Here I wish you happy new year and stay healthy always!


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