HALLS GAP COTTAGES – FOR SALE
PRICED FROM $210,000 – $240,000
Wilsons Warrnambool & District Real Estate are excited to present to the marketplace 15 x 2 bedroom hardwood cottages for sale for the use of holiday homes (and/or short term accommodation rental). The cottages are generously spread over the 8 hectare bush site to maximise privacy to all owners and to capitalise on the magnificent views of the Grampians ranges which surround what is part of D’Altons Resort in Halls Gap. The address is 8 Glen Street, Halls Gap.
What a fantastic opportunity to acquire that holiday house that your family has always dreamed of, in the ultimate holiday destination, while also offering the potential added bonus of earning rental income as well.
The land is zoned Rural Conservation Zone (RCZ), which only permits the cottages to be used for accommodation – not as a permanent dwelling.
Since the RCZ zoning doesn’t permit further subdivision, the entire site (i.e land, cottages and common areas) will be owned by a title company, which purchasers will then purchase shares in, in exchange for exclusive rights to a specific cottage and shared use of the common areas. In this regard, purchasers will be shareholders in the company that owns the land, cottages and common areas.
The cottages are constructed of rough sawn hardwood and compliment the ambience of the national park. Designed with family in mind each cottage is fully self contained and comprises 2 bedrooms, a fully equipped kitchen, lounge, dining area, and spacious verandahs, along with wood heater, fan, TV, air conditioning and a gas barbecue. They come fully furnished and decked out ready to enjoy!
There are also communal areas and facilities available to all owners – including synthetic grass tennis court, salt water swimming pool, children’s playground and well appointed communal function room.
Priced from $210,000 to $240,000, the cottages are all identical in size with only 2 slightly varied designs, the variation in pricing simply determined by their position within the property. Full list of prices and photos of each cottage below.
The tourist village of Halls Gap is situated in the heart of the Grampians National Park, Victoria Australia. Halls Gap is the perfect place to stay when exploring the ancient mountain ranges, natural flora and fauna, waterways and waterfalls and stunning views. Adventure enthusiasts from all over the world come for the abseiling, rock climbing, bush walking and cycling, whilst nature lovers are awestruck by the wildlife, native plants and delicate wildflowers. The region’s fascinating aboriginal history is told through ancient rock art. Topped off by breathtaking sunrises and sunsets, it’s no wonder that all of the rich facets of the Grampians has inspired writers, artists and film makers for decades and has been place for families and friends to relax, reconnect and experience the beauty of the Australian native landscape.
Here is a video of a walk around the property to help with showing the layout of the cottages within the property:
What is company title?
Company title involves a company being the sole registered proprietor of the land in which the Cottages are situated. Each cottage owner has shares in the company. Ownership of shares in the company (evidenced by a share certificate) provides a cottage owner the exclusive right to occupy their cottage and entitles them to use the common areas (i.e. driveway’s, pool, etc).
What will I own?
Rather than a certificate of title, a purchaser is issued a share certificate. By owning a particular parcel of shares, a purchaser has the right to exclusively occupy a particular cottage within the land owned by the company. The form of the share certificate issued is the same as any other form of share certificate for a private company.
The specific cottage allocated to each purchaser is described within the company’s constitution and will also correspond with a plan annexed to the constitution.
In addition to the exclusive rights to occupy a certain cottage, a leasehold interest will also be created under the Title Company to give each shareholder a proprietary right to their specific cottage. Therefore, a purchaser, will have all the usual protections under the lease provided to a tenant, including the right of exclusive possession, the right of quiet enjoyment, and the right to seek relief against forfeiture. The separate lease, to be registered on title, will provide for a long term fixed period with rights to renewals.
It will be a term of the share subscription agreement that each purchaser will enter into a lease with the Title Company for their respective cottage prior to completion of the purchase. For transparency, a copy of the form of lease will be attached to the share subscription agreement.
How is the company regulated?
The management and the governance of the title company will be vested in the directors by the shareholders under the constitution.
The board of directors will be supported by a managing agent who will be appointed to provide day-to-day management, facilitation of meetings and ensure compliance with regulatory requirements. The initial board of directors will be elected from the shareholders of the title company upon completion of the sale of the cottages.
How is the company managed?
The management and the governance of the company is vested in the directors by the shareholders under the constitution.
The board of directors will be supported by a managing agent who will be appointed to provide day-to-day management, facilitation of meetings and ensure compliance with regulatory requirements.
The board of directors are normally elected at the annual general meeting.
What about ongoing fees?
Similar to a strata title scheme, the company will ordinarily charge a levy or contribution from shareholders to establish an ‘administrative fund’ to finance the day-to-day management of the land (i.e. rates, water, insurance, gardening, cleaning, etc) and, if required, a ‘sinking fund’ to carry out building works. Levies will be determined annually by the board of directors. A draft budget will be provided upon formal contract documentation being issued.
The draft budget is currently being prepared, our anticipation is that annual fees will be in the vicinity of $3,000 – $3,500
What rules will apply?
The company will adopt a number of house rules to cover the behaviour of owners and their invitees, and the use of common areas. The house rules will be similar to those typically found in a strata title scheme. The house rules may be amended by the board of directors from time to time. A copy of the proposed house rules will be provided upon formal contract documentation being issued.
To register your interest, purchasers are asked to enter into a non-binding expression of interest. A full set of formal documents will then be prepared and issued to purchasers in due course in order to review and obtain advice.
There is often problems financing the purchase of a company title as the lender’s security would be a mortgage over the shares and/or lease and not a mortgage over the real estate. Many lending institutions are not comfortable in classifying this security with the same risk profile as real estate security. Lenders also tend to restrict loan-to-value ratios for company title properties. Therefore, purchasers may be limited to cash buyers or others who are able to provide additional security. If a lender is willing to loan funds to the purchaser to purchase a cottage, then either security over shares or security over lease may be provided (and allowed for under the constitution).