Bing, the owner of a property in New South Wales, you have come across two terms one is company title and the other Strata title. While the company title was the chosen norm until the 1960 strata title came into existence from 1961. The two have significant differences and being an investor, you should know them in detail.
Company Title
Here, every part of the property is operated by a board of directors. A company title in NSW cannot take a single final decision without a majority of the vote from the board of directors regarding an issue. Regardless of the fact that a property is purchased or leased, a single individual cannot restrict selling a particular share of the property. Under special circumstances, a particular individual or shareholder can be forcibly removed from the ownership of a portion of the share of the company by a majority of the vote of other property holders.
Strata Title
Unlike a company title in NSW, a strata title is far more transparent, equitable, and fair. It is not only the chosen norm now, but it is here to stay in the future as well. The biggest advantage of strata title ownership is that all the shareholders can enjoy an equal right to vote on important decisions. Quite the contrary to company ownership, the strata title is far more friendly for real estate investors. It is less rigid.
Final Take
Taking into consideration both the company title and star title, it is far easier to understand ownership to arrange for finances as there are no such restrictions on loan to value ratio.
