Homeownership dreams crumble under the weight of structural issues
- Replies 14
Disclaimer: The names in asterisks was changed in this context to protect the privacy and confidentiality of the individual involved.
As the saying goes, 'A man's home is his castle,' but for some Australian homeowners, their castles turn into horror houses.
The dream of homeownership has become a waking nightmare for residents like Serena*, a Melbourne woman who poured her life savings into an apartment now crumbling around her.
The plight of Serena* and others like her is a stark reminder of the potential pitfalls of strata living, an increasingly common homeownership in Australia.
With the nation's population growing and urban space at a premium, high-density housing such as apartments and townhouses is being touted as a solution to the housing crisis.
However, this solution comes with challenges, as evidenced by the shocking disrepair of Serena*'s home.
Serena*'s apartment, part of a 32-unit block, was purchased two years ago to provide her with housing security as she entered her 50s.
Instead, she has been living in fear that the building could collapse.
Last Christmas, she discovered a gap large enough to see through between her internal wall and the ceiling.
‘I put contact over it to keep the chill of winter out,’ Serena* shared.
‘It was very scary when I had chunks of plaster falling off the wall. The contact is doing its job in stopping bits from crashing onto my bench.’
The horror story of Serena*'s apartment block is not an isolated incident.
At least one in five Australians now live in strata-titled properties, and with over 350,000 strata schemes across the country, the potential for similar issues is vast.
The situation is made worse by what Serena* describes as 'horrendous' strata management, which needs to act on the building's foundational issues, leaving her and other owners in an impossible position.
A deep dive into the apartment block's documents revealed that problems with the building's foundations and cracking were raised as far back as 2015.
A report from that year identified poorly maintained storm and sewer piping as the cause, warning that the issue was 'severe.'
‘The story was that the building will fall over if we don’t do something in 12 months. It was then $70,000 to get an opinion to come up with a solution,’ Serena* said.
‘So I spent a good six months paying for storage. I thought at least, if I’m dead if the building collapses, my kids will at least have my stuff.’
The cost of repairs is astronomical, estimated between $1.4 million and $1.5 million, requiring every apartment owner to vacate.
The alternative, doing nothing, could lead to the council issuing a show cause notice, potentially rendering the building uninhabitable.
The expert's advice was bleak, suggesting that selling the units to a property developer might be the only viable option.
Still, even this would result in a significant financial loss for the owners.
Serena*'s story is a harrowing example of strata owners' vulnerability.
Despite paying annual strata fees of $2275, she has yet to see action from strata management, and the insurance company will not cover the cost of repairs.
The emotional and financial toll has been immense, with Serena* incurring costs for storage, repairs to a newly renovated bathroom, and psychological support to cope with the stress.
The broader implications of such strata management failures are significant.
Dr Janette Corcoran, director of the Owners Corporation Network of Australia (OCN), points out that many owners feel abandoned or unsupported, and significant issues like structural repairs often need to be addressed.
‘The building becomes unsafe and likely unsellable without adequate repairs and insurance coverage. Banks are hesitant to approve mortgages for potential buyers, and the structural issues significantly reduce the property’s value,’ she said.
‘To make matters worse, owners may lack the financial means to address these problems and the authority to act, which typically requires co-operation from the management company and strata committee.’
With the Victorian Government's Housing Statement advocating for more apartment living, such oversight is urgent.
In September, a coalition of Australian consumer advocacy associations called for a national inquiry into the strata management industry.
The NSW and QLD governments have supported the probe, recognising the necessity to protect the interests of millions of Australians living in strata-titled properties.
Have you experienced similar issues with strata management or building defects? Share your thoughts and opinions in the comments below.
As the saying goes, 'A man's home is his castle,' but for some Australian homeowners, their castles turn into horror houses.
The dream of homeownership has become a waking nightmare for residents like Serena*, a Melbourne woman who poured her life savings into an apartment now crumbling around her.
The plight of Serena* and others like her is a stark reminder of the potential pitfalls of strata living, an increasingly common homeownership in Australia.
With the nation's population growing and urban space at a premium, high-density housing such as apartments and townhouses is being touted as a solution to the housing crisis.
A Melbourne homeowner faces severe structural issues, causing her apartment to crumble, with repairs estimated between $1.4 million and $1.5 million. Credit: Shutterstock
However, this solution comes with challenges, as evidenced by the shocking disrepair of Serena*'s home.
Serena*'s apartment, part of a 32-unit block, was purchased two years ago to provide her with housing security as she entered her 50s.
Instead, she has been living in fear that the building could collapse.
Last Christmas, she discovered a gap large enough to see through between her internal wall and the ceiling.
‘I put contact over it to keep the chill of winter out,’ Serena* shared.
‘It was very scary when I had chunks of plaster falling off the wall. The contact is doing its job in stopping bits from crashing onto my bench.’
The horror story of Serena*'s apartment block is not an isolated incident.
At least one in five Australians now live in strata-titled properties, and with over 350,000 strata schemes across the country, the potential for similar issues is vast.
The situation is made worse by what Serena* describes as 'horrendous' strata management, which needs to act on the building's foundational issues, leaving her and other owners in an impossible position.
A deep dive into the apartment block's documents revealed that problems with the building's foundations and cracking were raised as far back as 2015.
A report from that year identified poorly maintained storm and sewer piping as the cause, warning that the issue was 'severe.'
‘The story was that the building will fall over if we don’t do something in 12 months. It was then $70,000 to get an opinion to come up with a solution,’ Serena* said.
‘So I spent a good six months paying for storage. I thought at least, if I’m dead if the building collapses, my kids will at least have my stuff.’
The cost of repairs is astronomical, estimated between $1.4 million and $1.5 million, requiring every apartment owner to vacate.
The alternative, doing nothing, could lead to the council issuing a show cause notice, potentially rendering the building uninhabitable.
The expert's advice was bleak, suggesting that selling the units to a property developer might be the only viable option.
Still, even this would result in a significant financial loss for the owners.
Serena*'s story is a harrowing example of strata owners' vulnerability.
Despite paying annual strata fees of $2275, she has yet to see action from strata management, and the insurance company will not cover the cost of repairs.
The emotional and financial toll has been immense, with Serena* incurring costs for storage, repairs to a newly renovated bathroom, and psychological support to cope with the stress.
The broader implications of such strata management failures are significant.
Dr Janette Corcoran, director of the Owners Corporation Network of Australia (OCN), points out that many owners feel abandoned or unsupported, and significant issues like structural repairs often need to be addressed.
‘The building becomes unsafe and likely unsellable without adequate repairs and insurance coverage. Banks are hesitant to approve mortgages for potential buyers, and the structural issues significantly reduce the property’s value,’ she said.
‘To make matters worse, owners may lack the financial means to address these problems and the authority to act, which typically requires co-operation from the management company and strata committee.’
With the Victorian Government's Housing Statement advocating for more apartment living, such oversight is urgent.
In September, a coalition of Australian consumer advocacy associations called for a national inquiry into the strata management industry.
The NSW and QLD governments have supported the probe, recognising the necessity to protect the interests of millions of Australians living in strata-titled properties.
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