40 years in RE and this is worst idea ever!

Discussion in 'Property Information Resources & Tools' started by Car tart, 23rd Jan, 2020.

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  1. Car tart

    Car tart Well-Known Member

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    https://www.smh.com.au/national/nsw...apartments-under-reforms-20200121-p53t7t.html

    Imagine if a US company that has never visited your high rise building, put a “Do Not Buy” profile on the 200 units in your complex where you own your PPOR. And it had state government blessing.
    All your local agents would know!
    No one would even look at the properties for sale.
    The 200 owners would more than likely become bankrupt overnight.
    It would be based on “opinion” rather than certified fact.
    It would lead to extraordinary greed and profiteering by schisms within the body corporate determined to buy the building for cents in the dollar, for redevelopment purposes.
    There would be factions hiding faults to boost the property values.
    There would be court cases against the value of such ratings.

    We already had a system. It was called builders licensing. If a building fails, take away the builders licence and sue the builder. BUT IN NSW there is no builders warranty required for buildings 4 storeys and over, because that would hurt the main funders of politicians, councils and corrupt bodies everywhere, so instead they make up a BS body that would bankrupt the owners of the units.
     
  2. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Yes Minister.

    Properties that cant meet proof of standards and an acceptable level of minor defects should be barred from transfer to buyers. And OTP deposits available for release and contract rescinded for all major defects. Builders and developers are then liable. Their lenders wont want that risk and may go back to the days of lenders also appointing their own construction consultants to inspect at stages.
     
  3. Car tart

    Car tart Well-Known Member

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    I don’t seethe problem with new property. That will all be fudged by the builder and their appointed strata manager until the statutory warranty period rolls over. The problem is with older existing buildings beyond the statute of limitations where “no one” is responsible.
     
  4. Redwing

    Redwing Well-Known Member

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  5. KinG3o0o

    KinG3o0o Well-Known Member

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    haha, welcome to the world of short sellers?