Multiple units on one title, such as a block of flats, can often be financed as residential property when it has a small number of units, commonly up to four. Larger blocks are usually treated as commercial lending, with a bigger deposit, a shorter term and the rent assessed more strictly. Strata subdividing the block later can open up residential lending and individual sales.

Units on one title at a glance
Number of units Usual lending treatment
Two to four Often residential, sometimes with a lower maximum loan
Five or more Usually commercial
After strata subdivision Each unit can be financed separately

Why are there blocks on one title in Sydney?

Many walk-up blocks in suburbs such as Ashfield, Marrickville, Randwick and Bondi were built before strata title was widely used, or were kept on one title by their owners. They come up for sale as a whole, often as a family sells, and attract investors looking for several rents and land value in established suburbs.

When is it residential and when is it commercial?

Lenders draw the line by the number of dwellings and how the property is zoned and used. A small block of up to around four units is often residential, though some lenders lend less against it than against a house. Above that, most treat it as a commercial investment, assessed on the rent and the borrower’s wider position. The commercial property loans page explains how commercial lending differs, and mixed-use property loans covers blocks with a shop below.

What do lenders look at?

  • The rent roll: leases, rents and vacancies for each unit.
  • The building’s condition, from a building report.
  • Council approvals for the number of dwellings.
  • Insurance for the whole building.
  • Your experience as a landlord, for larger blocks.

Can you strata subdivide the block?

Often, with approval and work. Strata subdivision needs a strata plan, certification that the building meets the required standards and registration. Older buildings may need upgrades such as fire separation. Once subdivided, units can be sold individually or refinanced with residential loans. Get advice from a surveyor and a strata lawyer on cost and feasibility before you buy on that plan.

A worked example

An investor buys a block of four two-bedroom units on one title in the Inner West. A residential lender agrees to fund it, counting the four rents after its usual reduction, but lends a lower share of the value than for a house. The investor plans to strata subdivide in two years and keep two units, selling the others to repay most of the loan. The lender wants to see that the loan works on the rents now, not only after subdivision.

What does land tax look like?

Land tax in NSW is based on land value, and a block of units sits on one parcel, so the tax is assessed on the whole block. The NSW land tax calculator estimates it.

Questions people ask

Can I get a residential loan for a block of units?

For a small block, often yes. Larger blocks are usually commercial loans.

How much deposit do I need for a block of flats?

Usually more than for a single home, especially if the loan is commercial. The exact amount depends on the lender and the rent.

Is it worth strata titling a block?

It can add value and flexibility, but costs and building upgrades vary widely, so get a feasibility check first.

Charles Touma works out whether a block fits residential or commercial lending and what the rents will support. A free 30-minute call covers it. General information only, not credit advice; lender policies change and every loan is subject to the lender’s assessment.

Sources: NSW Government, buying a strata property; ASIC, Regulatory Guide 209, checked 18 October 2026.

General information only, not credit, legal or tax advice. Your situation is assessed properly before any recommendation. Government scheme details change; figures are current at the time of writing.