Another crumbling building

[Black Orchid]

With faults and cracks discovered over the weekend in Sydney’s Mascot Towers apartment complex – and similar cracks in Opal Tower six months ago – the spotlight is back on the quality of New South Wales apartment buildings.

Research from the University of NSW in 2015 found that 85% of new apartment buildings had defects at completion – mostly with waterproofing and fire detection systems – and the certification system had “broken down”.

With renewed debate around certification and building quality, Guardian Australia looked at the current consumer protections available in the state for those who recently bought an apartment, or are about to.

What warranties do I have if I buy a new apartment in NSW?
Six years for major defects, two years for other issues.

If you buy an apartment, you have a a statutory warranty under NSW law – but it starts from when the building is finished, not when the apartment was purchased.

And it only applies between the buyer and the builder – not the developer or architect. If the builder goes bankrupt, dies or disappears, your warranty could become impossible to enforce.

Philip Gall, the chairman of the Owners Corporation Network, says the current warranty is too short and too imprecise.

“What often happens is the builder or developer, to avoid their warranty obligations, wind up the companies,” he says. “Then there is nobody for the owners to pursue for defects.

“And there is always an argument as to what a ‘defect’ is.

“You’d be able to do that with a fridge but you can’t do that with an apartment. That is just appalling.”

For the residents of Mascot Towers, built 10 years ago, they are no longer covered by warranty.

What about insurance?
This has changed a lot over the years, and gone through various names and reforms.

If your warranty is over, some buildings can access an insurance scheme that will pay for repairs, known as home building compensation (HBC).

But a 2002 change to NSW legislation means you are only covered if your apartment building is shorter than three storeys.

Previously, it was known as compulsory homeowner warranty insurance, and applied to all buildings, regardless of height.

“Many years ago, I had this experience myself [where the builder disappeared],” Gall says. “In the days when the homeowner warranty insurance was still around, we were able to get a large proportion of the cost of the defect paid for. You can’t do that any more.”

To fill that gap, in January 2018, the NSW government created a version of insurance for taller buildings, known as the strata building bond.

Under these rules, the developer pays 2% of the building contract price into a fund, held by the government, to repair any defects that are discovered within two years. After two years, the money is given back to the developer.

But Gall also criticised this as too little. “The problem is that two years is too short for these defects to become apparent, and 2% is way too small.”

If I’m buying an apartment now, what can I do to protect myself?
Gall is blunt. “Don’t buy a new apartment over three storeys. Don’t do it.”

His advice is to aim for buildings that are older than 10 years, to inspect the strata minutes, and, if you have the money, get an independent certifier to check the building.

https://www.theguardian.com/australia-n ... e-purchase

Tis a bit hard to find a new apartment building under 3 storeys. The higher the rise the more people they can fit in. I bet the Chinese are fuming as they are the ones who have bought up most of these new apartments. They have been knocked up just to accommodate their numbers.

[billy the kid]

Its rather symbolic isn't it...
One building is full of cracks....
Just wait until the entire real estate industry collapses in the very near future.
It will make the GFC of 2008 look like a teddy bears picnic.
Its going to get very ugly....
The current rubbish from the experts we are reading about now, where they
are trying to tell us that the prices are bottoming out in some areas is an absolute joke.
The tip of the iceberg is only showing at the moment...and we all know what happened to the Titanic...
This is not just my opinion...it is based on information I have received from someone who made a fortune
out of being a mortgage broker....he knows what he is talking about......
The Australian real estate industry is on the verge of total collapse.....
Brace yourselves......

[Bobby]

Its rather symbolic isn't it...
One building is full of cracks....
Just wait until the entire real estate industry collapses in the very near future.
It will make the GFC of 2008 look like a teddy bears picnic.
Its going to get very ugly....
The current rubbish from the experts we are reading about now, where they
are trying to tell us that the prices are bottoming out in some areas is an absolute joke.
The tip of the iceberg is only showing at the moment...and we all know what happened to the Titanic...
This is not just my opinion...it is based on information I have received from someone who made a fortune
out of being a mortgage broker....he knows what he is talking about......
The Australian real estate industry is on the verge of total collapse.....
Brace yourselves......

It's been going on since the 70s.
I know one builder who left the industry in the 70s
because he was forced to do fast shoddy work.
He later became a successful boat builder.
We was a qualified cabinet maker.

[Black Orchid]

Owners of units in Sydney's Opal Tower are seeking millions of dollars in compensation from the State Government in a class-action lawsuit.

In documents lodged with the NSW Supreme Court late on Friday, owners of the western Sydney apartment tower are suing the Sydney Olympic Park Authority (SOPA), the owner of the land on which the Opal Tower sits.

The Sydney Olympic Park Authority is a NSW State Government-controlled entity, meaning residents are effectively suing the Berejiklian Government — not the developer or builder.

The lawsuit claims a "breach of warranty" and that design and construction of the $170 million apartment complex, which was evacuated on Christmas Eve after residents spotted cracks in its foundations, was not designed or constructed with "due care and skill".

It is claiming a breach of the Home Building Act, in that the tower was not built in accordance with the plans and specifications.

"Opal Tower was not reasonably fit for occupation," the claim states.

The owners, hundreds of whom have now been in temporary accommodation for more than seven months, are also claiming losses due to a drop in the value of the apartments and a loss of rental value

https://www.abc.net.au/news/2019-07-29/ ... k/11354562

Good work!

[Gordon]

The only unit I'd ever buy is a red or blond brick, max 3 levels, max 12 apartments.

[Redneck]

The only unit I'd ever buy is a red or blond brick, max 3 levels, max 12 apartments.

With a window to see the girls sunbaking topless on the roof across the street eh Gordy?

[cods]

I hate to say it but the quality of our tradies isnt what it used to be either..

they are not trained properly these days its all about getting them passed no matter how good or bad they are...

sorry but its true...it sadly is the same in most industries... even medical people are churned out robot style.. quick as possible..

quality went out the window a long time ago...god I am glad I dont have to begin at the beginning again.

[Neferti]

I hate to say it but the quality of our tradies isnt what it used to be either..

they are not trained properly these days its all about getting them passed no matter how good or bad they are...

sorry but its true...it sadly is the same in most industries... even medical people are churned out robot style.. quick as possible..

quality went out the window a long time ago...god I am glad I dont have to begin at the beginning again.

Me too, Cods.

[cods]

my little place built in the 70s no cracks anywhere.....I feel as safe as I have ever done..

truly its the same with furniture todays crap is just that crap...unless you pay a fortune for something..

[Neferti]

my little place built in the 70s no cracks anywhere.....I feel as safe as I have ever done..

truly its the same with furniture todays crap is just that crap...unless you pay a fortune for something..

Mine was built in 1982 - Garry Willemson, Architect. Quality fittings etc. These days it's crap.