earthquake prone apartments

[phillip30]

hi All,

any feedback appreciated. I have seen a number of earthquake prone apartments selling at what appears a good price. I can see there are many potential pit falls. Can anyone suggest what areas of due diligence are worth considering and what risks need to be factored.

thanks

[John the builder]

what area are you looking?
in the areas where risk is real? or low risk area Auckland/northland , south of south island?
as critical dates (2030?) fall there may be pressure on govt to stay the execution? oe change the law

[phillip30]

Looking in Wellington

[donna]

Can you get insurance? What would it cost?

[jemimafisher]

Sounds like a very risky investment, especially in Wellington. What are your intentions long-term? I suppose it all comes down to whether you're in a position to manage the risk in a worst-case scenario and whether you can get insurance on a known earthquake-prone property.

[donna]

What earthquake strengthening can you do to avoid it failing? I've seen steel frames put on the outside of units and buildings, including small single-story townhouses. - It doesn't look pretty, but it does the job. This would be a decision you could make if you were considering semi-detached or standalone but not apartments, so that makes it tricky - getting all owners on board to get the work done.

cheers,

Donna

[phillip30]

Agreed there is risk. My thought was if it can be remediated and bought at a significantly lower price it may be worth considering. I do wonder what they will do with so many buildings unlikely to meet the required dead lines.

[donna]

Family have earthquake prone - must fix apartments and I think they’re waiting till the deadline as there is one other owner - commercial - maybe there will be a cheap loan on offer to prompt action.

cheers

Donna