NSW Mascot Towers repair bill to hit $53 million

Discussion in 'Property Analysis' started by spoon, 16th Apr, 2020.

Join Australia's most dynamic and respected property investment community
  1. spoon

    spoon Well-Known Member

    Joined:
    17th Nov, 2016
    Posts:
    1,011
    Location:
    Time-dependent
  2. Beano

    Beano Well-Known Member

    Joined:
    7th Apr, 2016
    Posts:
    2,420
    Location:
    Brisbane
    Maybe better to sell the site for land value .
    Use the land for a low rise building .
    In Los Vegas they seem to be able demolish high rise hotel by the use of explosives.
    Might only cost $200 m2 to demolish ?
    Land worth $10k m2 ?
     
    Last edited: 16th Apr, 2020
    Archaon and Redwing like this.
  3. spoon

    spoon Well-Known Member

    Joined:
    17th Nov, 2016
    Posts:
    1,011
    Location:
    Time-dependent
    Yes, likely the only solution. But there are 132 apartments. So not a lot to be left with per owner given what they might have paid for.
     
    Hetty likes this.
  4. Beano

    Beano Well-Known Member

    Joined:
    7th Apr, 2016
    Posts:
    2,420
    Location:
    Brisbane
    It's just that spending $53m is only a EST and the cost could rise.
    Better to start again
    Also the soil may not be able to take heavy high rise
     
    Stoffo likes this.
  5. datto

    datto Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    4,379
    Location:
    Mt Druuiitt
    Demolish and build a car wash. A job for life for all residents.
     
  6. euro73

    euro73 Well-Known Member Business Member

    Joined:
    18th Jun, 2015
    Posts:
    5,374
    Location:
    The beautiful Hills District, Sydney Australia
    Wouldn't really have mattered if you bought OTP or waited until it was finished. The issues weren't apparent to any of the engineers or building inspectors it appears.... they started 10 years after the building was completed. I think its beyond outrageous how little protection there is for apartment buyers, just generally.
     
    Hetty, Archaon and spoon like this.
  7. New Town

    New Town Well-Known Member

    Joined:
    8th Sep, 2015
    Posts:
    539
    Location:
    QLD & NSW
    Isn't that far more than it would have cost to build? Painful!
     
  8. Beano

    Beano Well-Known Member

    Joined:
    7th Apr, 2016
    Posts:
    2,420
    Location:
    Brisbane
    Yes I would say so too but the site may not be able to take so many units if they rebuilt
     
  9. FireDragon

    FireDragon Well-Known Member

    Joined:
    31st Jul, 2015
    Posts:
    255
    Location:
    Australia
    If the problem is caused by the soil not able to take heavy high rise, I thought they won't be able to get the DA back 10 years ago?
     
  10. Depreciator

    Depreciator Moderator

    Joined:
    15th Jun, 2015
    Posts:
    1,761
    Location:
    Sydney
    In the 12 years since this building was built, there have been at least dozen higher ones built in this small pocket in Sydney. When this problem first arose, blame was levelled at the developer of the block next door. The accusation was that the excavation for their foundations had caused the foundations on Mascot Towers to be undermined. Something like that would take years to go through the legal system. We have a client with an apartment in Mascot Towers and she's not hopeful of any outcome soon..
     
    spoon likes this.
  11. Hetty

    Hetty Well-Known Member

    Joined:
    27th Jun, 2015
    Posts:
    523
    Location:
    NSW
  12. Shawn

    Shawn Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    291
    Location:
    Sydney, NSW, Australia
    Funnily enough, I just got the below email an hour before reading this thread on PC


    Peak.PNG
     
  13. Stoffo

    Stoffo Well-Known Member

    Joined:
    14th Jul, 2016
    Posts:
    2,706
    Location:
    Sydney
    Nice enough building, though some internal tile finishing is ???
    Like the finish to concrete floor area's though.
    Yes, I do works at this building
    Would I buy in a highrise built on a former swamp, hell no !!!
     
  14. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    8,946
    Location:
    Melbourne
  15. Blueshoes99

    Blueshoes99 Well-Known Member

    Joined:
    24th Aug, 2019
    Posts:
    145
    Location:
    Sydney
    I feel so sorry for these owners. The worst situation ever. Can’t do anything with the property - can’t live in it nor rent it out nor sell it because no one would buy.

    Waste of money, time, energy and will power
     
    Hetty and Pingu1988 like this.
  16. lucidity

    lucidity Member

    Joined:
    29th Jul, 2020
    Posts:
    11
    Location:
    Sydney
    Gotta love Aland. One of the properties I was looking at just successfully won a work order in the tribunal for dozens and dozens of breaches.
     
  17. Ben43

    Ben43 Well-Known Member

    Joined:
    28th Feb, 2019
    Posts:
    48
    Location:
    Canberra
    What, if even measurable, do you think the total economic cost of Opal, Mascot, Elara (ACT) is to the broader construction industry?

    I had an offer on a off-plan apartment around the time of these, which I withdrew and swore never to purchase an apartment or any dwelling that I couldn't raze to the ground if needed. I cannot be the only one.
     
  18. Jana

    Jana Well-Known Member

    Joined:
    19th Apr, 2016
    Posts:
    345
    Location:
    Sydney
    It looks the issue with these buildings are completely mis-interpreted by many in this forum.

    The followings are irrelevant to this topic.

    Off the plan, soil issue, considering these two misfortune building as typical sample of entire building industry, buying at former swap etc...

    Engineering and constructions are another art. Few people make mistake, the media attention goes there. If all building designed and built property there will not be any issue. Mascot is completely different issue. I don’t think that was an original design or builder issue..
     
  19. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    6,043
    Location:
    Australia
    The investor approach would be, there is a chance these buildings have issues that the buyer has no control over, and the buyer cant just raze the building.

    This is a lower risk with small blocks or houses. So whats the benefit of buying in big buildings? Might be better to just avoid them and spend more time focusing on specific markets instead.

    in other words, doesnt matter how big the risk of a crappy building (or sinking land, a la jordan springs) is, why expose yourself to any of it?
     
    ChrisP73, Stoffo and Ben43 like this.
  20. Ben43

    Ben43 Well-Known Member

    Joined:
    28th Feb, 2019
    Posts:
    48
    Location:
    Canberra
    Exactly, offplan/soil etc isn't the issue, it's the size of the building and the lack of control over the circumstances, or ability to just start again.
     
    ChrisP73 and The Y-man like this.