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Strata reforms fit the bill

Strata reforms fit the bill

New strata laws come into effect in NSW this Wednesday, delivering apartment owners and renters legislative reforms that are fit for 21st century living.

Long overdue, this reform package has been many years in the making. With around quarter of the NSW population currently living in strata and forecasts that this will rise to 50 per cent, there was an urgent need to revise the legislation to be more relevant and fair.

Many of the reforms deal with issues that have been the cause of longstanding resentment amongst those living in apartments. Pet ownership has long been one of the more contentious ones. It may seem trivial to some but it’s a make or break issue for some real estate buyers and tenants. Equally there are landlords who have a quite reasonable desire to protect the value of their property asset.

For a quick comprehensive guide to the new legislation we suggest checking out Jimmy Thomson’s Flat Chat column.

Jimmy’s an authority on strata and the most reliable source we know on the subject.

Other reforms that are going to make a positive difference include making it easier to carry out cosmetic and minor renovations; the ability crack down on illegal parking and dealing with overcrowding in sub-let apartments.

Landlords who have taken a buy and forget attitude to their property investment may need to become more involved in decision making with the restrictions placed on proxy farming.

The most contentious part of the reforms relates to the redevelopment of ageing strata, changing the vote requirement from 100 per cent to 75 per cent. Without getting caught in the pros and cons of this legislation, let’s look at the upside for property owners. There is a lot of untapped value locked into older apartments that can only be unlocked through redevelopment.

The NSW government wants to see densities increase to accommodate a growing population, finding a middle ground between high density inner-city towers and new land releases on the urban fringe. Its draft Medium Density Design Guidelines address this ambition with proposed planning laws that promote terrace housing but the strata laws are also aimed at achieving more efficient land use.

Selling out to a developer doesn’t have to be the only option. The laws make it easier for owners to consider renewal, by adding a penthouse or additional strata on under-utilised land. The appeal in this approach is that the profits from adding value can be used to renovate or refurbish the entire apartment building. ​

Domain: Change to NSW Strata Laws to Give Apartment Owners To Turn Buildings Into Gold Mines

All in all the new laws have plenty of upside for apartment owners particularly in a market where thousands of brand new apartments will soon be completed. The competition for tenants, already quite intense in some areas, will get even tougher putting on rents and vacancies. If the choice is between shabby unit or shiny new apartment guess which one gets the good tenant.

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