Put simply, strata titling is a way of handling the part ownership of a structure. Most people are familiar with strata titled units in large complexes, but in reality, a strata title can be used any time there is common property that is shared by more than one owner.
When I talk of “strata subdivision” as a real estate investing deal strategy, I will be referring to the purchase of one or more existing buildings that are currently on a single title, and then splitting these up into a number of individual “strata” titles. This may be, for example, a block of units that have a single owner, and are all on one title, or a duplex building where both dwellings are on the single title.
The potential value in strata titling as a strategy is to be found when the parts are worth more than the whole. Eg individual units are worth more if sold separately than the if the building is sold as a whole.