Buying into a Strata Scheme has Collective Benefits 10/10/2005 Purchases of strata titled properties are on the increase. Yet few people understand where the concept came from and fully appreciate the benefits.
Prior to the 1960’s it was not possible to own part of a building. In the old days either you bought the entire structure or you got none of it at all. But many people only wanted enough space for their own comfort and were not at ease with the idea of having to buy and support the entire block.
Mr Richard Tooker, director of New South Wales Strata Management, one of the State’s largest managers of strata titled buildings, said the forerunner of the strata title was the company title, which in simple terms allowed people to buy shares in a company that owned the building. The shares were allocated according to the size of each unit and shares could not be easily bought or sold, as permission by the buildings’ owner was required.
“This form of title was certainly less well suited to our more modern way of living, in townhouses, villas, and other styles of buildings. So the New South Wales Government looked toward a different model.
“The result was the birth of what we today call strata title living. Under strata title people can hold a title to their own portion of the building and share a collective responsibility for the ‘whole’, with major costs of upkeep spread amongst the owners on a pooled basis that left no single person carrying too large a load.”
Mr Tooker said the strata title system allows people to freely sell or rent their property as they wish, unlike the company title format that requires share owners to ask the building owners permission, a factor that can significantly influence the sale price.
In the early days company title had its’ strengths and drawbacks, which still holds true. However to a very large extent strata title has moved to the forefront as a preference.
New South Wales Strata Management (formerly Gilmour Strata Management) commenced business in early 1991, as a member of the highly respected J A Gilmour & Sons group of companies. Licensed solely and specialising only in strata management services, the company has steadily grown to become one of the largest such organisations in New South Wales.
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