Apartment buyers beware!

It’s not one of those catastrophes whose havoc is readily identifiable. It’s not a sudden death, the loss of employment, or a family split.
But it’s not everyday hundreds of residents suddenly find themselves homeless and bereft of all but their most precious belongings.
But somehow, it’s happened twice to Sydney residents in the past six months.
First at Opal Towers in Olympic Park on Christmas Eve last year. And most recently, Mascot Towers last month.
Both buildings were evacuated after being deemed unsafe to inhabit because of dangerous defects. The double disaster has provoked genuine and justifiable fears in apartment owners and potential buyers alike. How many apartment buildings might be secretly harbouring structural defects that could prove fatal to their owner’s investments?
Although the NSW Government has provided interest-free loans to fund temporary accommodation for displaced residents, there is virtually no safety net for owners to reclaim their money. Establishing liability will be a long and expensive process, and even if the builder is deemed responsible, it’s far from a sure bet they will have pockets deep enough to come close to rectifying this financial apocalypse.
So, buyers beware. Not just when purchasing a high-rise apartment off the plan. But when purchasing any form of property. Anywhere. Anytime. Always run the proper checks before making an offer, including the purchase of a Building or Strata Report. It might cost a few hundred dollars in the short term but could save you hundreds of thousands in the long run.
A building or strata report will identify any pre-existing or current issues with the building, including any prospective legal actions on behalf of the Body Corporate if you’re looking at a higher density dwelling. According to The Australian Financial Review, strata records for Mascot Towers revealed that residents were considering legal action over the cracks a year before the stunning evacuation. Anyone who purchased in that time had clear and present warning of a significant issue lurking beneath. Sadly, those who failed to conduct proper checks would have missed it.
Building Reports and Strata Records can be complex documents. For those not familiar with the industry’s jargon, they can read like parchments written in a foreign tongue, only adding to the tension and stress that surrounds a property purchase. Our property experts are well versed in this language and can quickly spot risks that, if not identified before contracts are exchanged, might lead to ruination.