Hi all,
I just received a strata report for a studio apartment I am likely to invest in.
An issue which cropped up in the report was the fact that the building was undergoing litigation due to building problems.
I won't mention the name of the original builder but it is quite a popular building.
Are such issues common with solid apartment complexes, or is it something out of the ordinary? The apartment complex is located in Sydney CBD, and has approx 200 apartments in the complex. All other reports show that the apartment is managed by a large-scale property company (public listed), with a good background.
Your thoughts are most appreciated.
Regards,
AjayIt highlights that there are issues with the building, probably with the original construction. The Dept of Fair Trading is a toothless tiger in NSW when it comes to litigation against builders (basically, unless the builder has gone bankrupt, repudiated the contract and died all in the space of a week you have no chance of recouping any money for repairs). Hence you may be buying into a building with ongoing problems and costly litigation – special levies etc.
It is unuusal – yes.
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