Multiple Occupancy, Community Title and Ecovillages

February 3rd, 2025

The housing crisis is a wicked problem with many tentacles, but there is one thing that most experts agree on. That is, we need to expand the diversity and models of housing choices. The duopoly of either a stand-alone house in urban sprawl or a strata unit in the city is no longer fit for purpose.

Some of the many housing options on the menu are co-ops, group homes, co-housing and build-to-rent. However, since we are a rural region, I want to concentrate on just three for this article: Multiple Occupancy, Community Title, and Ecovillage.

Background

Australia is the most urbanised nation in the world. Of the 26 million population, over 90% of us live in cities or suburbia. The baby boom generation was conceived in the red brick-and-tile developments of the outer suburbs. Inner city units were the option for singles, couples and the retired.

Not much changed until the early 70s with the Whitlam Labor government. The idea was to allow a new type of housing in the regions. MOs originated as a type of rural development where a group of people, not necessarily related to each other, live on a single property in several dwellings.

MOs and CTs

The first MOs were in Byron Shire in Main Arm. The Aquarius Festival in 1973 in Nimbin (Lismore Shire) led to the creation of the Tuntable Falls Co-op. Others followed, and it was viewed as a way to utilise cheap land to build affordable housing in the regions. Because of resistance from local councils, the NSW government (Minister Paul Landa) introduced an enabling state planning policy for MOs in 1988, overruling local councils.

Community Title legislation was introduced to fill the gap between standard urban subdivisions and strata. Its attributes were recognised, and CT has become a helpful option in rural areas, especially in the Byron Shire.

The critical difference between MOs and CTs is that MOs are only one title, where each shareholder has the right to build a dwelling. In a CT, each buyer has a separate title and shares the common land as tenants in common. This makes CTs more desirable and valuable to MOs as they can be mortgaged and are more independent.

Property Boom

Fifty years later, affordable houses on cheap land are a thing of the past. Most MOs are converting to CT, and shire councils are glad to see the last of them. LGAs prefer to get the rates and no longer want to deal with compliance issues with unapproved DIY builds. The lack of governance structures is an issue for MOs, and the hippy dream of everyone getting along and living off the land proved to be not so simple.

Many new rural subdivisions in Byron Shire use the MO development stage to proceed to CT. Some of these new rural land-share communities are less about the “community” and only about the “Title.” The demand for small rural acreages is still there for city tree-changers, with or without the community aspect. Therefore, most MOs are keen to proceed to CT approval if possible.

With MOs, extra research and due diligence are required to avert buying into a dysfunctional situation. You will also need to be a cash buyer as mortgages are complex, if not impossible, to secure. CTs are another matter, and new CT subdivisions are still coming to market. Expect to pay between $1-2 Mil for a couple of acres plus body corporate fees to manage the community land. A lot has changed since this was the cheap, get-back-to-the-land option.

Ecovillages

Ecovillages are subdivisions where community, sustainability and ecology are front and centre. The model has been slow to catch on, but expect an increase in ecovillages as the desire for community and concerns about climate change become more pressing. State planning bureaucracies have not been friendly or adaptive enough to expand this option thoroughly.

A good example of the difficulties was seen locally with the Brunswick Eco Village on Saddle Road, Brunswick Heads. This site is now being developed as mixed-use and is dealt with more in ATT. The planning approval process was long and arduous for the developer. Even with a strong and dedicated band of supporters and potential residents, the proposal was abandoned due to lengthy delays and a small amount of local opposition.

A new attempt at ecovillage development is afoot in Kyogle Shire. Afterlee Ecovillage is currently signing up people wishing to have a go at community living. In Western Australia, south of Perth, the Wichcliffe Ecovillage is one successful example that is being held up as a model to follow. Narara Ecovillage is just west of Newcastle, NSW. They are about to launch stage 2 of a vacant land release.

With the housing crisis only getting more dire, it is interesting that these models are now receiving more attention. If you want to participate in a deeper discussion on this matter, a conference is coming up in Lismore later this month. Click here for more info.

Get Good Advice

Buying into any of these options is not as straightforward as buying into a unit or a house. CT, with its title, is a bit easier but still has variables because of the rural nature of the land. With MOs and ecovillages, there are also more steps in the purchase process. It takes time to see if it is a right fit – on both sides. Byron Property Search has dealt with many purchases on all three options and is happy to talk to anyone considering going down this route.

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