Greetings from Scoutable and welcome to our November Wrap Up.
Across Sydney, Melbourne and Brisbane, auction numbers continue to climb as the spring market heads for Christmas when the market traditionally stops. However, the data below shows a drop in clearance rates of 12% in Sydney, 24% in Melbourne and 9% in Brisbane, for the November year on year comparison.
November saw 3,538 properties scheduled for auction across Sydney, with an average clearance rate of 48%. Melbourne saw 3,915 properties scheduled, with an average clearance rate of 46%. Brisbane saw 672 properties scheduled for auction with an average clearance rate of 36%. In comparison, November last year had an average clearance rate of 60% (5,438 properties), 70% (5,528 properties) & 44% (672 properties) respectively.
When buying property in Australia, it is important to know what type of title it has. Below I’ve listed some of the more common types of property titles in Australia which entail different kinds of ownership structures and ongoing costs. They include:
Torrens Title - Also known as “freehold”, this is the most common type of title when buying land in Australia. When you purchase Torrens titled land, you are buying both the land and any dwelling/s that may be on it. Most residential and commercial properties in Australia fall under the Torrens title. The property belongs to the ‘title owner’ however, if the owner has mortgage on the property, the financial institution will keep the title certificate until the title owner has paid the mortgage off.
Limited Torrens Title - Some Torrens title properties have unclear boundaries since they have not been adequately surveyed. You can convert Limited title properties into standard Torrens title properties by surveying the land / boundaries. There are usually additional costs involved.
The Old System Property Title - When Australia was first settled, there was no formal system for registering the ownership of land. As the colonies developed, they created registers, and eventually, a formal centralised system for registering ownership which has over time moved to the Torrens title system. Properties that are not registered in this system are known as Old System title properties.
Strata Title or Group Title - These types of properties are usually apartments or townhouses. A Strata title property owner only owns the space within the lot walls. This includes paint and fixtures but not the wall itself. It can apply to both residential and commercial properties, either standing singularly or grouped under the one roof. Any common areas such as the lift, garden, swimming pool, stairwells, entrance halls, and other community facilities, are co-owned and shared by every lot owner in the building. A strata corporation is set up to handle maintenance of common areas and insurance of the buildings. You will pay annual (and sometimes special “one-off”) strata fees for the maintenance of the building/s and common areas.
Company Title - This type of property title was commonly used before strata title was invented. A Company title means that you buy shares in the company that owns and runs the land and building. The purchaser’s shares give them the right to occupy their apartment, enjoy the common areas of the property and have voting rights on company matters.
There is little known about this kind of title amongst the general public and the subsequent selling of a property will require the sale of the shares which may be difficult. It may also require the shareholders to approve new buyers and may have rules not allowing leasing. Further, some banks might limit the LVR (loan to value ratio) or not lend at all.
Stratum Title - Stratum title pre-dates modern strata title and is a bit of a cross between strata and company title. Under stratum title, the property is subdivided into lots. Each lot owner is the registered owner of their lot but instead of co-owning common property as in a strata title, you own shares in a service company which owns and manages the common property of the building/s as you would see in a company title.
Community Title - Similar to strata title, community title usually refers to an entire subdivision or neighbourhood. By setting up a community title rather than a strata title, the entire community can pay to look after common grounds such as gardens, security, tennis courts, pools and any other services in the neighbourhood that can all be shared by the occupants.
Leasehold Title - Leasehold title properties are usually in rural areas that are owned by the government but are leased out to an owner for a period of time. This types of property could be a cattle farm, a wheat property, or a church. The government has the power to decide ownership of the land. There is no freehold estate land in the Australian Capital Territory (ACT) but there is a leasehold system. This means that ownership of a property is in actual fact a right to use the land for a specified term. Usually, it’s initially released on a of 99 year lease, the balance of which can be sold and exchanged. Crown Land / Perpetual Leasehold title in other states are also common, particularly in NSW where some luxury apartments on converted wharfs are maritime leasehold.
If you're thinking of buying or investing in Australian property, get in touch to learn about Scoutable's services and how we can assist with your property search.
Until next month,
Kellie Landrey | Principal Buyers Agent
IN THE NEWS
DOMAIN PREDICTS MARKET TO STABILISE
https://www.9news.com.au/2018/11/28/16/59/domain-property-price-forecast-predicts-stabilisation-of-housing-market-before-modest-growth-period
STATE LIBRARY RELEASES COLLECTION OF PROPERTY PORN
https://www.smh.com.au/national/nsw/property-porn-gives-glimpse-into-the-aussie-dream-of-home-ownership-20181121-p50hfl.html
CITY OF SYDNEY PROPOSES CHANGES TO LATE NIGHT TRADING PLANNING CONTROLS
https://www.cityofsydney.nsw.gov.au/council/your-say/sydneys-late-night-trading-draft-planning-controls
PROPERTY OF THE MONTH
233 & 233A EDINBURGH ROAD CASTLECRAG
Castlecrag is a suburb on Sydney's lower north shore. It's located on a peninsular bound by Middle Harbour to the north, south and east. The suburb was named by Walter Burley Griffin and Marion Mahony Griffin, after a towering crag of rock overlooking Middle Harbour. The Griffins had much to do with the planning of the suburb, paying sympathy and respect to the natural environment and character of the site. This is still clearly evident through all the local flora and fauna.
Located on the banks of Sugarloaf Creek on the northern side of the peninsular is this special home, on the market for the first time in 80 years. Positioned on one of two lots of land for sale, totalling an unbelievable 6,600sqm, it is one of only three homes ever positioned on this waterfront enclave. The other two are currently council owned.
The house itself, was built in 1912 and is heritage listed. It maintains all the period charms of it's time - ornate ceilings, double hung windows, cornicing, picture rails and the like although there's no doubt that it is requiring some work. It also offers a tidal pool leased by the Maritime Services Board. Rumour has it that the dwelling was an illegal gambling den in the 1920s - understandable given its unique location. The property is only accessible by boat or a hilly 8-minute bush walk to get you to Edinburgh Road (we timed the walk). What's incredible is that this secluded harbour side retreat is only 10km from the CBD.
It was such a treat to inspect this unique piece of Sydney real estate.
The price guide is $6,000,000.
If you’d like to know more about this property or any others, please get in touch.
