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.


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