$2.7million Strata repairs...!

http://www.goldcoastbulletin.com.au...-concrete-cancer/story-fnj94idh-1227397685580

$2.7m concrete cancer repairs for a Gold Coast high rise.... Anyone been involved in a big strata repair bill, care to share..?

 

What a shocker.... If I was on that strata committee I would have very quietly sold up.

Anyway, so far the worst I've had is a 125k bill shared by 72 unit owners for a lift replacement.

 

A previous work colleague had a unit in a Meriton block. There was a long drawn out dispute over drummy tiling in all of the common areas.

You just can't trust developers

 

Discraceful.

 

We had a 60K bill to repair external stairs with concrete cancer (on the beach also). 10K per unit, not too bad.

 

Is this the type of thing that could be hidden/not mentioned for a sale but a diligent buyer would find in something like the minutes?

 

@AlexH - this should be revealed in the strata search by your solicitor.

 

We were involved in one about 4 years ago. Sunshine Coast block of flats. Concrete cancer, blown render, corroded external doors, windows and balcony railings. Total was $7m. It worked out at about $55K per owner.
We where asked to give an opinion on what could be claimed as repairs vs improvements for each owner.
It all got down to how long people had owned their flat. For those who had been renting theirs out for over 20 years, we said in our opinion their could claim the lot as repairs.
Then there were those who bought in the last year or so. I remember one tearful owner who called up when she received our letter that said we did not believe she could claim any of the $55K as repairs.
I said, 'when you bought that place, did you read the strata minutes?'
'What's that', she said.
Big things like that are usually kicked around for years in Body Corp meetings while people try to flog their flats to other people.

Scott

 

@Depreciator changing names Scott?

 

Thanks. I know building insurance doesn't cover it so what type would?

 

Deep pockets.

 

@AlexH - only your own thorough due diligence will save you from buying a dud.

 

Sounds like Maorrchy Sands? We actually looked at buying in there knowing about the $55k repair bill. The only reason we didn't was knowing how long the work was going to take meant too long without rent.
We did end up with a win though, we did the screens on all the new windows . Probably made more off that job than if we have bought the unit.

 

Am in the process of doing DD on a place now and have asked for the minutes, would something like this be recorded in EVERY meeting minutes once identified (i.e. am trying to work out whether I ask for only the last minutes or for a longer period)?

 

Minutes record what was discussed at the meeting.

 

I have seen one in Pyrmont Sydney which cost about $5mil and owners about $30k each.

I would never buy strata because of this sort of loss of control. I also believe it is common to give contracts to 'friends' with inflated prices and various kickbacks along the way.

 

A good sign there maybe be problems is if there is a large number of units for sale in one complex. I know of one in Albury that has massive structural flaws. When it was revealed about eight went on the market.

 

Yes I know. My question is whether problems like this would be discussed and recorded at every meeting (so only minutes from the latest is enough) or only intermittently (so you'd check the last X years worth of minutes)?

 

Depends on how serious the issue is