REINSW welcomes strata law review

Residents of New South Wales are increasingly looking to good-quality, high-density housing as an alternative to the "traditional quarter-acre block", according to the Real Estate Institute of New South Wales.

The organisation released a media statement following the announcement that the NSW government intends to review and potentially simplify the state's strata title laws, which are among the oldest in the world.

An online consultation into the current strata laws has been announced by minister for fair trading Anthony Roberts and will run until the end of next month.

The consultation, which is hosted by Global Access Partners (GAP), will also examine issues surrounding community schemes in the state and members of the public are encouraged to contribute via the GAP open forum website.

According to the REINSW, it is time for the existing laws "to be reviewed and tested to determine if they satisfy community expectations and requirements".

The laws, it noted, should include provisions for the use of modern technology which could allow strata members to attend meetings without being physically present.

They should also account for lifestyle changes - particularly the "cultural shift" in Australians' preferences for accommodation that has occurred during the last half-century.

The institute also highlighted the need for a system that allows for simplified budgeting and for efficient and cost-effective management of strata-related disputes as and when they arise.

Strata laws, according to the REINSW, should always protect the property owner and purchaser - and provide maintenance for buildings over time.

Any change to the strata laws in NSW could affect individuals with a Sydney investment property - and it will be interesting to see if legislation is changed in the coming weeks and months.

The REINSW published its strata law review just days after noting that December rental vacancies rates for Sydney showed slight improvement compared with November's figures.

However, experts note that the slight easing of rental vacancies is likely to be short-lived, as historically, this is a seasonal variation observed at this time of year.

Tight rental vacancies are expected to return in early 2012, according to REINSW president Christian Payne, who asserted that demand for rental properties tends to spike at the beginning of a new year.

"The already low levels of available rental properties are likely to be squeezed even further as people return to work," he stated.

Posted by Grace Neale