Hi,
I've just made an offer on a 2 BR unit in Lakemba Syd, was all ready to sign the contract, however after receiving the Strata Report today I discovered something. The report has shown that a common wall adjoining 2 other units in the 8 unit complex has a large crack about 1cm thick. This was mentioned in 2007 and the strata got a quote to fix the problem by underpinning the foundations which would cost about $100k. That's about $13k per unit. The owners have opted to not act on the problem and the building and strata report is fine otherwise.
My concerns are:
1. We may have to fix it in the future, a cost I don't really want to pay.
2. If and when I come to sell other buyers might be turned off it as well making it harder to sell.
3. If the owner of the affected units with the crack decide to sell they might have to offer a discount which would drag my MV down with it.Other things to consider is that apparently it is quite common in the area which happened during the drought we had in NSW a few years back drying up the clay which the property is built on. Could it close up if we get lots of rain?
Also, do you think plenty of people would not care about these things as much as myself and would have no problem buying into such an apartment block?What would you panel of experts do in this situation?
I would really appreciate some opinions as I need to make up my mind tomorrow before the agent sells it to someone else.Cheers
FIf you are keen, negotiate a lower price based on the probability that you will need to put your hand in your pocket to fund the repair work. If not, walk away. (Remember that it may still be worth persuing now as there has been a bit of a correction in builders prices since 2007).
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