Mozo's Property Pain - Building Defects Report 2019 details the cost Australians are paying for poor construction standards.
Leaks, cracks and inappropriately installed materials are just some of the defects new apartment and homeowners have been forced to spend $10.5 billion fixing over the past decade.
The shocking price tag comes from financial comparison organisation Mozo. Their survey results come as regulators continue to struggle with fallout over serious safety issues in Melbourne’s Southbank and Olympic Park, Erskineville, Zetland and Mascot in Sydney.
On average, fixing apartment defects is causing owners $6434, while house owners are receiving bills for $5839. At the top end, four percent of apartment repairs cost over $50,000 and five percent of house repairs over $20,000. It gets even worse for apartment owners: 58 percent of those facing defects had to contribute to a sinking fund, while 25 percent were forced to pay a special levy to fund the repairs.
Mozo Property Expert Steve Jovcevski has warned property buyers that purchasing a new apartment or home is tantamount to signing up for years of costly repairs and remediation. Of the respondents who say they have bought in the last decade, 100 percent report facing problems.
"Australia is in the middle of the perfect storm when it comes to building defects. A construction boom that saw some developers and builders cut corners to meet demand coupled with the weakening of regulatory oversight has seen defects rain down on homeowners," he says.
These findings aren't grim for buyers alone. As the public becomes increasingly aware of the risks they are buying into, construction professionals are likely to feel the repercussions. Earlier this week, the Australian Institute of Architects warned that lack of oversight has "fundamentally compromised" the industry.
To read the full Property Pain - Building Defects Report 2019, click here.
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