Apartment & separate car park

In many cases an apartment and its car space are on separate titles.  Consequently in buying the apartment two assets will be acquired.  However these assets will be linked if they cannot be separately sold and will also be linked in a practical sense in that they form one dwelling.

The Draft Ruling confirms that if the two titles cannot by law be separately sold, then for the purposes of limited recourse borrowing they are treated as a single asset.
    
Multiple titles

The Draft Ruling also treats two or more titles as being a “single asset” for the purposes of the limited recourse borrowing rules where the multiple titles are linked because they cannot in practice be sold separately.

If a dwelling sits on two contiguous titles, then there is one single asset.  For example, a public house which sits on 3 or more titles (because the public house grew by additions and extensions as adjoining strips of land were acquired) will constitute a single asset.

Unfortunately, the linkage must be by law (ie titles cannot be separately sold) or physical structures.  Where multiple titles are used in the same enterprise  - for example a farming enterprise which is carried on over a number of titles – there will be no linkage.  This follows as each title can be separately sold and there will be no physical structures affecting all of the titles.