Underpinning: Are some cases irreparable?

Discussion in 'Repairs & Maintenance' started by DrunkSailor, 26th Sep, 2017.

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  1. DrunkSailor

    DrunkSailor Well-Known Member

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    Melbourne
    A very nice apartment in an area I'm looking to buy is listed for 30% below market value due to severe foundation issues that will require repair. There is a very large crack running down the entire front of the complex. It's been several months and still no one has purchased the property.

    The agent has quoted 20-25k levy per owner to cover the cost of the repair. My question is, can all foundation cases be repaired or are there some circumstances in which the whole complex will have to be abandoned because it's not worth the price of fixing?
     
    DrunkSailor, 26th Sep, 2017
    #1
  2. D.T.

    D.T. Specialist Property Manager Business Member

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    I think you answered your question at the end there. All can be repaired, but the cost escalates in line with severity til the point where it might be worth rebuilding.

    I'd avoid such an apartment, even if it were stupidly cheap. Fixing your own property is one thing, getting a bunch of others involved who all of their own opinions on the matter or might not afford the levy is another.
     
    D.T., 26th Sep, 2017
    #2
    wylie likes this.
  3. Marg4000

    Marg4000 Well-Known Member

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    Run away as fast as you can.
    The low pricing and lack of interest should rule this one out.
    It is entirely possible that underpinning won't be successful.

    The only way to consider this one is percentage of land value minus demolition cost minus considerable buffer for delays.

    And ignore what the agent says unless he has written quotes including guarantees. His estimate is worthless.
    Marg
     
    Marg4000, 26th Sep, 2017
    #3
    wylie and Propertunity like this.
  4. Chivaun.Shortis

    Chivaun.Shortis Well-Known Member

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    How old is the unit complex would it still be under warranty of the builder. Would the company still be responsible for the underpinning. If not I agree with DT unless you have bottomless pit of money I would avoid at all costs.
     
    Chivaun.Shortis, 26th Sep, 2017
    #4
  5. Lawrence Barnes

    Lawrence Barnes Well-Known Member

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    There are more advanced options than under pinning now. Companies such as Uretek in QLD pump a poxy resign under the building to fill the void between the building and the soil. I have used it quite successfully to fix a house in QLD that had issues. Given the choice of buying a house/apartment knowing these issues I would walk away like everyone else on here has said. if the area has very reactive soil it could be an on going issue for years and years.
     
    Lawrence Barnes, 29th Sep, 2017
    #5