Pros and Cons of Community Title Living
A balanced look at the benefits and challenges of community title arrangements
Community title schemes are an increasingly popular form of property ownership in Australia, particularly in large residential estates, lifestyle villages, and mixed-use developments. Like strata title, community title allows for shared ownership and maintenance of common property. But community schemes often include a broader mix of land uses, open spaces, and layered management structures.
If you're thinking about buying into a community title scheme or you're already an owner, it's worth understanding the unique benefits and potential drawbacks.
Here's a balanced look at what community title living offers.
Pros of Community Title Living
1. Shared Amenities and Facilities
Community title schemes often include high-quality shared facilities such as parks, pools, tennis courts, playgrounds, and walking tracks. These shared amenities can enhance lifestyle and property value without the burden of private upkeep.
2. Master Planned Communities
Many community title developments are master planned, offering a cohesive look and feel, landscaped common areas, and well-maintained streetscapes. These design elements create attractive living environments that appeal to families, retirees, and professionals alike.
3. Flexibility in Lot Design
Unlike traditional strata title, community schemes allow for a broader range of lot types. Owners can buy freestanding homes, townhouses, or even commercial lots, depending on the development. Each lot may have its own Torrens Title or be part of a subsidiary strata scheme.
4. Structured Governance
Community schemes are managed by an "Association" (similar to an owners corporation), which oversees the common property and enforces by-laws. Larger schemes may be divided into multiple layers, each with its own management committee, allowing for tailored decision-making and financial control at the neighbourhood level.
5. Greater Control Over Aesthetics and Behaviour
Community Management Statements (CMS) include rules about things like external finishes, fencing, parking, and pets. These rules help protect the overall appearance and function of the community, which can positively affect resale values and resident satisfaction.
Cons of Community Title Living
1. Complex Management Structures
Community schemes can be layered and complicated, particularly where there are several subsidiary schemes. Owners may be part of multiple associations or committees, which can lead to confusion over roles, responsibilities, and levies.
2. Higher Ongoing Costs
While shared facilities are a major benefit, they also come with ongoing costs. Owners contribute to maintenance and management through levies. Large developments with pools, gyms, or security services can have substantial annual fees.
3. Strict Rules and Restrictions
While the CMS protects consistency, it can also limit owner freedoms. Rules around landscaping, renovations, or even the type of curtains visible from the street may feel too restrictive for some. Changes to the CMS usually require a special resolution, which can be hard to achieve.
4. Disputes and Governance Challenges
Community living requires cooperation. Disagreements can arise over shared expenses, rule enforcement, or committee decisions. Resolving these issues may involve mediation or even legal proceedings, depending on the severity.
5. Long-Term Planning Needs
As with all shared ownership models, community schemes need solid long-term financial planning. Sinking funds (or Capital Works Funds) must be built up over time to pay for major repairs or upgrades. Poor planning can result in special levies or deteriorating facilities.
Final Thoughts
Community title living can offer an excellent lifestyle with access to facilities and a sense of shared community. It suits people who value structured environments, quality public spaces, and well-maintained amenities. However, it also demands a level of involvement, financial commitment, and a willingness to live within community rules.
Before buying into a community scheme, make sure you understand the governance structure, costs, and by-laws. Review the Community Management Statement and minutes of recent meetings and seek advice from a solicitor familiar with community title law.
By weighing up the pros and cons, you’ll be better equipped to decide whether community title living is the right choice for you.
Disclaimer:
This article is intended for general educational purposes only and does not constitute legal or financial advice. Readers should seek independent legal and professional guidance relevant to their specific circumstances and jurisdiction
