Strata lot with some cracked balconies on top.

Hi, I am not looking for professional opinion but rather advices from the experienced buyers. I managed to secure really good strata lot with a solid tenant in 6 storey building. Upon strata report investigation I've noticed that all balconies above this commercial property have structural cracks with the following comment from the investigator:

Author sighted an instance of separation to the facade balcony junction at the location of the joint which was measured to vary between 5-10mm in width.
The Author also notes that an external examination of the unit 301,401, 501 & 601 living room cantilevered balconies (which are in direct alignment with one another) revealed extensive vertical cracking southern balcony facade wall. The Author is of the view that the aforementioned separation along the balcony wall junctions as well as the aforementioned vertical cracking to the balcony external facades is likely attributed to excess deflection of the subject balconies.
The Author also notes posts which appear to be situated along the aforementioned balcony balustrades which have likely been installed retrospectively to mitigate the extent of deflection.
Given the above, the Author is of the view that the subject cracking be referred to a chartered engineer for further comment.

Developer claimed that they fixed most of them. Now as a person who doesn't understand anything in structural issues my questions:

• Should I run away immediately from that deal?
• Should I hire more professional to get second opinion?
• Can I take separate insurance which may cover any issues in strata? Is it even possible?

Thank you

 

Why don’t you do what the inspector suggested??

 

Because, I am just buying a lot under these floors. No one will allow me to send my structural engineer to investigate the issues on other people lots.

 

What does the strata report indicate about these defects? Is it a case that they haven't documented the repairs, or are there reports on file?

 

How old is the building ?

 

Strata documented all defects in 2023 and requested developer to fix them although warranty expired. Recently Developer advised that they fixed 40% of the defects and will fix them all in future.
However I realise that this is the same developer who made bad work from the begining.
How will they fix now and what would be the quality?
Are such defects even fixable?

 

9 years old

 

I am asking obviously not only people on the forum. However I would like to say that most brilliant ideas, opinions or advices I've actually got on this forum. People here are not just educated but very open-minded and often gives me different angles of the view to my problem.

However I agree and also ask other tenants and owners - you are right.

 

So this problem was detected some time after completion and rectified/patched during warranty period (that now no longer exists) !

THIS ^^^^
Any future repairs or reconstruction costs will result in a special levy......
I know someone who recently went thru this, $5,000 per Qtr special levy for 18 months just to cover legals, yes they won but the pay out only amounted to the legal costs, the strata has only now some 3 years later almost fixed the issues !
The stress caused is not worth it

 

Definitely run. Have been through this and it wasn’t pretty.