Walk up flats reaching end of life?

Couldn't think of a more appropriate title for this.

Is it me or just a streak of bad luck finding a decent maintained walk up double brick building between 1965 to 1975 that is decent to live in. The two I have put down 0.25% have either had previous roof leaks or current roof leaks, mould all over the eaves, shower recess are in bathroom leaking / showing high moisture reading on the surrounding walls of shower, cracked cement and buckled driveways that need replacing and just things that require fixing or replacing that costs $$$. Have we reached that period where all these 1970s builds start to require replacement of everything?

I looked at two small walk up blocks both with mid $900pq strata and still need to pay special levies to get things fixed like roof repairs etc. I've heard many times the old walk ups are solid and low strata. It's not the case for about 50% of these walk ups. The only thing solid is the double brick, Do you all agree? What are everyone's thoughts; esp top floor walk ups seem to be common to have sagging ceiling from water leaks etc. One building inspector told me the ceiling has asbestos in it and it's not a plaster /gyprock ceiling but he said he is not an expert. I said, are you sure, I don't think so.

I'm now looking at modern builds about 2-3 year old. Don't want the headache.

Thanks.

 

I mean the things you've described wouldn't turn me off and probably don't cost that much to fix in the scheme of things.

Modern builds about 2-3 years old I would be much more sceptical of.

 

Yes agree not that much to fix but if it's spread across 6 lot owners, majority won't be happy paying for it and delay. Driveway replacement is 20k across 6 lot owners. Would be much better if it's 20k across 20 - 100 lot owners. This is where I feel if I buy to move in, roof may take forever to be addressed. Who is responsible for the sagging ceiling as well?

 

If there aren't some issues with a 50-60 year old building, I'd be worried.

Yes, they are solid, have shown all of their warts etc but the owners over the past 50 years have looked after the issues.

If levies are low, then you can expect to see some issues over the next few years or they have just completed all of the works.

Look at the 10 year plan & the sinking fund - what's planned & what's in the kitty.

If it predates 2000, there's bound to be some asbestos in the place.

Just as important, how's the electrics (adequate supply/compliant switchboard), phone line (NBN compatible), intercom - these will need work at some point in time.

Roof - is it getting to the end of it's life - then no more issues for 30+ years. Paving, shared hws, roller shutters etc same story.

 

Would look for the 50% that ARE solid and low strata.

the advantage is still good construction and more potential for redevelopment, which is less likely for a 3 year old building.

this is like looking for old houses over new houses. Sure some old houses arent kept very well, but imho they would still age better than the new stuff.

 

HWS is a good pick up. I didn't see it in the laundry room where it normally is. Would it then be shared and sitting in the roof?

 

Depends on the system - possibly 50 litre in the kitchen or St high level in bathroom, instantaneous outside, pumped reticulation systems somewhere on common property or in the roofspace or a gravity fed roofspace unit.

 

I wouldn't be gravitating towards new if you've simply found a few problems (common) with 40-60 year old builds. Apartment blocks that were built in the 1920's are still going strong here in Sydney (inner east, city, lower north shore) Look at gorgeous examples like the Astor in Macquarie St or Beulah in Kirribilli- premium prices due to their age and charm

The OC are the most important factor in the maintenance and upkeep/love on any apartment blocks. Complacency, laziness and a lack of interest in the goings on of strata buildings (as well as incompetent strata managers and tenant/airbnb heavy occupation) ultimately contribute to problems that are left too long, maintenance issues that aren't addressed early enough and increasing costs.

Look for an active EC, healthy Capital works (sinking) fund (usually depleted if recently used for a main work or repair) interested owners who genuinely care about the block and workable 10 year fund plans. Special levies are common in some builds, especially if their strata levies have been too low for too long... just like a house, if you don't put the money aside for necessary and forecasted works/likely repairs (ie: buffer) the money's going to have to come from somewhere.
Don't give up on the older builds - there's plenty of good 'uns out there. Happy hunting!

 

Older red brick home unit buildings generally have their HWS inside one of their kitchen cupboards. These are preferable to the newer system of one shared HWS between the building’s occupants.

I believe that newer 2-4 storey buildings have better piering and footings than 20-50 year old buildings, but many of the newer buildings have problems yet to be discovered over the first 5-15 years of their life.

The beauty of older buildings is you can add value to the property at little cost and if the the building site is under utilised you can look forward to an increase in value for redevelopment.

 

Yeah except that's not likely to to be $20k across 20 - 100 lot owners. It will be $300k plus $80k in legal fees when you need to take the builders to court, and other lot owners in arrears of their strata fees.

 

Yes fair enough. I must say some new builds under warranty will have the builder address asap.

 

Totally agree. What happens when the HWS in the roof dies and requires replacing? Does everything then get one installed in their laundry room? I don't think you could fit a new one through that small man hole.

 

Good insight here. Agree the OC are a place to look to determine healthy maintenance of a building. I wonder what happens when the OC disagree to fix something even though it's consider major defect or requires replacing. For example, what happens in this regard if say a 50 year old roof requires restoration but majority don't care? I am just thinking about if I buy this place and I get continuous roof leaks and OC are only willing to spend hundreds for patch work instead of thousands for a permeant fix.

 

Wait for it to get worse, buy a majority of the units cheap then get it fixed?

 

If you are thinking of going near-new, then I believe brand new allows greater depreciation inclusions than as a second owner - check with accountants on that.

Get your hands on the body corp / strata AGM minutes for the last few years. This can assist in understanding the nature of the management and if maintenance is being looked at proactively or reactively.

 

Yes good idea. I did strata report. 20K special levies on fixing driveway. Trees next door bucked the concrete really bad. I think it will still happen with new concrete unless trees are removed. I would say apart from 10 year sinking fund plan, everything else is reactive. Spend only when absolutely required which is typical for many of these old walk ups.

 

Just buy a house then?

 

Then there’s only house problems, not apartment problems.

 

Ah yes, but you don't have to share the costs with the other owners. It's all your's.

 

Ive seen it first hand in a 15 year old unit complex I worked on. 80% of balcony and planter box membranes were failing across 150 + units. Rectification works were averaging 15 - 40k per unit depending on scope. Remedial contractors are still working in the building to this day