Summary:
Strata titled properties date back to 1968, and for some of the older complexes, the buildings themselves have exceeded their viable lifespan. Owners must weigh up the ongoing maintenance expenditure against the possibility of selling the entire complex for redevelopment purposes.
More Information
Landgate have produced a factsheet, which includes the new safeguards which are being introduced in the STAA 2018. See link below
Excerpt From Act
STAA 2018
Part 12 “Termination of strata titles scheme”
Clause 83 of Division 3, Part 2 of the Strata Titles Amendment Bill 2018 (the Bill).
Example Case:
A complex of 18 lots on the Scarborough beachfront dated back to the early 1970's. The buildings were in poor condition and had a rundown appearance. They had leaking windows and a roof which needed replacement in its entirety. Further to this, there were other items that required maintenance or updating.
Due to the prime beachfront site, a developer approached the Strata Company and wanted to purchase all lots in one transaction and was prepared to pay higher than their market value to secure the sale.
The lot owners could not reach agreement and eventually the developer retracted the offer. The owners were then faced with the reality of having to pay large special levies in order to maintain and repair the building just to ensure it remained habitable and insurable.