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Strata Title is splitting up a property into separate titles to increase its market value. Once the property is split it is possible to sell the individual properties. The combined value of the separate sales should be more than the original price paid for the property before strata. This investment strategy works on the principle that two pieces of property are worth more than one.
Strata titles can be applied to various residential, high rise, townhouses, factories, offices or retail properties. More than one title in one building is a Strata title.
The main benefit of strata title is that with a small amount of work, the investor can quickly increase the value of a purchase.
How does this work? The splitting up of the physical building its self means that you are valuing the individual properties not the property as a whole and generally, individually they are worth more. It is called the 'synergistic effect'. |