You may have come across the term 'Torrens Title' when thinking about buying property and getting a home loan. People often look at alternatives to a free-standing house when buying or renting and there are plenty of units, town houses and villas around, so what differences should you take into account? 

Torrens Title

Torrens title means you are the sole owner of the property. ‘Torrens’ refers to a land title system, where the owner of the property owns the land and the building on it.

With a Torrens title, you secure your land through registration of title. When you buy under the Torrens title system, the registrar will issue you a certificate of title. An example of a Torrens Title property would be any normal block of land with a single house.

Torrens Title properties allow you free rein

  • You can be creative in making your property your own within the restrictions of Local Government regulations (check with your local council)
  • You can determine when and if repairs are made to suit your financial situation
  • There are fewer no restrictions on pets, hanging washing, barbecues, and off-street parking

Strata Title

Strata title schemes are composed of individual lots and common property. Properties that are adjoining in some way – like apartments or townhouses – are normally bought under strata title, because they share some common areas such as roofs, lifts, gardens, driveways, etc. The common areas must be maintained by all lot owners collectively and any expenses incurred will be shared through the Body Corporate or Owners Corporation.

Strata buildings require the owners to pay a levy that covers the ongoing expenses of maintaining the common property.

Note: If you are looking to buy a strata property, it’s a good idea to closely examine the financial health of the owners corporation to see how funds are managed and to get an understanding of what costs are involved.

Great things about Strata Titles

  • The lifestyle benefit of outsourcing the bulk of property maintenance, more me time and less doing parks and gardens
  • Strata properties can be easier to sell as demand is consistent
  • Strata properties usually cost less than Torrens title properties, because you’re not actually buying the land

Some negatives about Strata Titles

  • Any changes to property usually need permission of the owners corporation
  • Strata fees are subject to change and are likely to increase as buildings age

What's the next step?

For all loan enquiries chat with a member of our lending team by arranging an appointment on 02 6763 5111 or enquire online now.

This article contains general information only and should not be construed as advice. Consider your circumstances, and seek advice from your solicitor, accountant and financial planner as applicable.