First-time Buyer in Melbourne

Discussion in 'The Buying & Selling Process' started by Melbourne_guy, 4th Aug, 2019.

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  1. Melbourne_guy

    Melbourne_guy Well-Known Member

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    Hi all, as the title suggests, I am a first-time buyer looking to buy an apartment in Melbourne so it makes sense I ask the property experts on their views and experience. I have been unable to find answers on my queries by using the search function.

    The current situation with many apartment blocks using non-approved fire-cladding is a huge issue and neither Govt or State building agencies appear to be doing much to provide prospective buyers information or advice on the situation or which buildings are affected. From the websites I've read, the advice is to ask Real Estate agents, builders, etc on the fire-cladding status of the building. In other words, put trust in the very industry which has caused and exacerbated the problem. I don't want to be facing uncosted liabilities re. fire-cladding so what is the best way to approach getting this info? Aside from one, the other agents I've asked when enquiring on properties have been very vague and I give the impression they don't want to discuss it.

    In an apartment block, what is the owners responsibility for the building? For instance, who is responsible for the repair and cost of water ingress into the top level building from the roof space? Who do I approach to find out this type of information? Again, I'm finding real estate agents reticent on providing or assisting with answers.

    Will a Body Corp provide me with information on annual reports, previous expenditure particularly on repairs considered more than general maintenance. If not, how do I get this information because although some may dismiss it, it is a factor in determining values and costs.

    Hopefully someone may be able to assist or point me in the right direction.

    Thanks
     
  2. Trainee

    Trainee Well-Known Member

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    If you are that worried, avoid large blocks and buy a older place?
     
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  3. The Y-man

    The Y-man Moderator Staff Member

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    Usually the building insurer - BUT I recall seeing a thread recently on this site about someone who couldn't claim through building insurance due to some issue.....

    The Y-man
     
  4. The Y-man

    The Y-man Moderator Staff Member

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    How to avoid living in a 'lemon' — what you need to know before buying an apartment

    As per @Trainee above, the write of the article says:

    For prospective buyers, industry experts suggest the following advice:

    • Look for a sinking-fund forecast in the strata report, plus any planned or completed remedial works
    • For existing apartment complexes, conduct a body corporate records search
    • The search should outline recent annual meetings and information on the sinking fund and any planned and completed capital works projects
    • Find the builders' previous projects and go and inspect them in person
    • Don't buy an apartment in a complex more than three-floors high
    • Have an independent building inspection completed
    Ms Stiles said the OCN also suggested buying an apartment more than 10 years old.

    "Generally we find faults have emerged and been fixed within the first 10 years," she said.

    "But Mascot Towers and this most recent one in Zetland were more than 10 years old, so that doesn't always ring true."



    The Y-man
     
  5. The Y-man

    The Y-man Moderator Staff Member

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  6. Melbourne_guy

    Melbourne_guy Well-Known Member

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    Thanks Y-man.

    If I say anything more about those operating in the real estate sectors based on my recent experiences and the consequences of poor building practices, I will likely get banned.:)
     
  7. KateAshmor

    KateAshmor Victorian Conveyancing Lawyer Business Member

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    Welcome @Melbourne_guy! The section 32 / vendor statement contains limited information about the building and Owners Corporation (as required by Section 32 of the Sale of Land Act). You can inspect the Owners Corporation Register of documents if you wish to find out more information.

    And a building and pest inspection will provide you with current information about any issues at the building.
     
  8. Melbourne_guy

    Melbourne_guy Well-Known Member

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    Thanks Kate. I've only ever viewed a Section 32 for a standalone title so I'll be interested in what information the Section 32 states for the Owners Corporation.
     
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  9. Inertiaticesp

    Inertiaticesp Member

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    We recently were looking at a townhouse that was adjoining a four storey apartment complex. Each building had their own owners corp and the vendor stated in the section 32 that 'after discussion with the townhouses OC manager, they believed that they would not be liable for any cladding repair work identified on the adjoining apartment complex'.

    Didn't fill one with confidence. To answer your question, if you are in Victoria, you can email the Victorian Building Authority and ask if an audit has been done and the result. They will ask you to provide photo id and state whether you're an owner or prospective buyer.

    The townhouse price range was quoted at 525-575 and sold at auction for 655. Imo the buyer overpaid into a bit of a risky building. The bedrooms had fire sprinklers installed which was concerning.
     
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  10. Melbourne_guy

    Melbourne_guy Well-Known Member

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    Cheers Inertiaticesp, I emailed VBA as per your suggestion so hopefully they get back to me asap. The fire-cladding issue is huge in Victoria and my mates are slagging me off for wanting to be a bit careful but I guess they can be a bit more gung-ho when it's not them up for a $50k+ bill with little to no chance of avoiding it if the building is found to be non-compliant.
     
  11. Inertiaticesp

    Inertiaticesp Member

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    No problems, they took a couple days to inform me of the audit outcome. You can also contact the council, though Glen Eira were not helpful in my case.

    Always do your due diligence, I've learnt a hell of a lot as a fhob. If your mates are ok with the risk then all power to them :D