Company Title Pros
- They are typically more affordable than strata title properties
- Money is saved on strata costs like insurance and administration
- With less complicated approval processes and by-laws, resolving basic disputes or addressing problems may be simpler
- The residents are typically owner-occupiers or permanent residents that have been approved by the board, which may lead to more harmonious living and less short-term occupancy
- There are very specific agreements associated with company title so you know exactly what you’re getting and what can and can’t be done
Company Title Cons
- Prospective buyers need to be approved by the company’s board which will have rules and restrictions on potential owners
- Tenants will also need to be approved if there are no restrictions on whether you can rent your place out to a tenant
- Lenders are more reluctant to approve home loans for company title compared with strata title. There are stricter LMI levels, and the lender may want to see the agreement before approving a mortgage
- Because the company directors approve the transfer of shares (the new buyer) the pool of purchasers and how quickly the unit may sell might be restricted
- Rents might be a little lower than what could be achieved for a strata property
- The apartment’s value may not increase at the same pace as strata title units
