Dispelling the myths around strata reform: UDIA

Dispelling the myths around strata reform: UDIA
Dispelling the myths around strata reform: UDIA

GUEST OBSERVER

Misinformation and scare tactics are clouding the debate around incoming strata reform.

The strata laws under which we operate are the oldest in the world so the system is in desperate need of an upgrade. The exponential growth in the popularity of strata ownership means that reform is urgently needed to bring it in line with modern life.

Bills do not apply to existing strata schemes, only future strata schemes with current strata owners having the option to opt in, so it will take time to see material change in the NSW system.

If 75% of residents agree to redevelop a strata development the remaining 25% will not be thrown out onto the streets.

The facts have been lost along the way here. One thing people need to be aware of is this strata reform is not retrospective. It will apply only to existing strata committees if they chose to sign on to it, and it will apply to strata committees that are established post the introduction of the reforms.

And in reality any collective sale of the strata development is complex and will take up to two years to achieve. The sale would have to go through courts and those in opposition will have the opportunity to argue their case.

Further facts are:

  • Old strata buildings are expensive to maintain. The upkeep of a dilapidated building is not only a burden to residents but also owners who wish to sell their apartments. 
  • Strata unit owners stand to benefit. The majority of residents will make more profit from the collective sale of a strata development then if they were to go it alone. 

Stephen Albin is chief executive of the Urban Development Institute of Australia and can be contacted here.

Tags: 
Strata Residential Apartments

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