Strata property developments
As an investor, there are several factors to weigh up when it comes to choosing the ideal property, with one of them being how attractive it will be to tenants.
Brand new real estate has its advantages. Not only is it generally more efficient to run than older property, but can also be more accustomed to the modern lifestyle.
As a result, property in Western Australia could be about to become more popular with mortgage borrowers, as a consultation is launched in relation to strata-type properties.
What are strata homes?
If you've never heard the term strata before, it refers to the type of property in which there are several different tenants.
These are commonly apartments and townhouses, with each individual owner taking responsibility not only for their individual plot, but also the common areas within the property.
Communal spaces and exterior areas such as driveways and gardens will all usually require some form of financial contribution from the owners to ensure their upkeep.
What is happening in Western Australia?
It has been announced that the Strata Titles Act Reform Consultation Paper has been launched in Western Australia, which aims to address some of the issues surrounding this type of property.
Such a move has been welcomed by the Property Council of Australia, as it believes the consultation has the potential to increase the appeal of this real estate.
Among the areas that will be considered is bringing community titles into force, which the group anticipates will give rise to more large-scale developments throughout the region.
Commenting on the plans, Executive Director of the Property Council of Australia Joe Lenzo said other states had already witnessed success in this area.
"This includes more mixed use development around suburban centres and strategic infrastructure investments like train stations," he noted.
What benefits will the reforms bring?
The government envisages a wide range of benefits will result from the strata reforms being brought into force, not least because they will improve housing options for people throughout the state.
It should also lead to a more streamlined process of handing over properties from developers to owners, which could be causing problems in some instances at present.
Developers are expected to be given greater options for how they will develop land across the country and will be able to adopt various strata schemes in a single building for a variety of uses.
The effects of the consultation could be so far-reaching that even estate agents selling strata homes may benefit, as the government indicates they will be able to have greater disclosure at the point of sale.
This is in addition to the higher number of strata homes that will be available to buy throughout Western Australia.
Why should investors consider strata homes?
The Property Council also believes as a result of the consultation that it could become easier for strata homes to be developed - something investors might be keen to learn.
Strata properties have their advantages over freestanding homes, not least because they can work out as a more affordable investment as a result of shared aspects.
Keeping a property well maintained should also be easier in theory. In many cases, strata levies are paid on a regular basis - usually quarterly - so areas can be kept in top condition.
There's also the fact that demand for strata properties remains high across the nation, so when the time finally does come for you to sell on, there should be no shortage of interested buyers.
"It is very important that we modernise WA's antiquated strata laws as increasing numbers of people choose to live in strata properties, including apartments and townhouses," said Mr Lenzo.
Image credit: Daniel Lee