Property Market Information: NSW strata changes creep closer

By the resi financial blog team, 26 May 2014

Strata changes in NSW

Property investors and apartment owners in New South Wales will no doubt seek the best variable home loan rates on offer, or may even opt for a fixed-rate loan.

Aside from their finances, another factor that is sure to pique their attention relates to the rules governing strata. 

Strata reform has been on the agenda for some time now, and it appears that some forward movement is on the cards in the very near future, according to the Real Estate Institute of New South Wales (REINSW) in a May 20 statement. 

The REINSW noted that proposed changes to the state's strata laws were delayed earlier in the year, following the government noting that additional consultation was required.

A raft of meetings were held with "industry and strata experts" last year, according to NSW Fair Trading. Following this, a position paper was released, outlining the proposed changes.

The amendments are set to shake up the 50-year-old strata title system currently in place. Changes to substantive by-laws as well as amendments to the management of strata schemes have been suggested.

"NSW Fair Trading Chief Policy Officer Reece Bolan confirmed that an amended strata reform bill is set to be completed and tabled in Parliament any day now," stated the REINSW.

The industry body noted that the bill was expected to be introduced earlier this year.

"Earlier drafts addressed a lot of problems that REINSW had raised, however there are some areas in the proposed bill that need significant industry input," explained Tim McKibbin, chief executive of the REINSW.

Mr McKibbin also noted that the reforms are significant. It's possible that part of the reason for the delay is the sheer extent of the changes that need to be made. The position paper outlined 70 amendments, noted the REINSW.

Whether you're after a first home loan or investment loan, you may wish to consider strata for your next purchase.

Categories: Home Loans, Property Investment