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Thread: Leaky Buildings

  1. #1

    Default Leaky Buildings

    I am new to this forum, so apologies for newby questions or if there is already a thread (i have looked).

    Thinking about buying an apartment in auckland. One building i'm interested in has been diagnosed with leaky problems (not fully leaky but there will be quite a big cost of repair). I'm wondering how the body corporate will go about raising the extra (I assume) funds needed to pay for the repairs. Is this something i can find out in the body corporate rules perhaps? If so, are these publically available and where can they usually be found? Do body corporates have financial statements?

    The reason being is that there is a big difference to being hit with a one off $20k levy or 20 annual $1k levies. I do know I should be staying away from leaky buildings but am interested all the same.

    Thanks in advance for your help.

  2. #2
    Join Date
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    Should be in the body corp meetings minutes, if not then they might not have decided how to deal with it,.

    If they are sueing someone remember that the proceeds of any winnings could be paid to the original owner
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  3. #3

    Default

    The bodycorp will have an annual budget and a Long Term Maintenance Plan (LTMP).
    These in addition to the BC minutes are the first place to start.

    A separate 'sinking fund' may have been established to start planning for this.
    This should be separate from the day to day annual budget expenses.

  4. #4
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    Jul 2011
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    Default

    Can you get a copy of the scope of works? Has one been done and done properly, some buildings are on 2nd and 3rd repairs. Really need some professional advice before you commit to a purchase like this.

    Normally you have to front up with the cash as the BC doesn't normally have reserves for leaky buildings.
    Last edited by Maccachic; 01-02-2013 at 03:05 PM.

  5. #5
    Join Date
    Sep 2011
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    Dunedin
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    Default

    if i was you i would be looking at one that doesn't leak...........if there is such a thing

  6. #6
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    I have had this sitting on my desk for a while well worth a read altho it was a 2009 publication: http://www.branz.co.nz/cms_display.p...7&st=1&pg=3884

    Weathertightness
    Although weathertightness has been a recognised issue in New Zealand for nearly 10 years, leaky buildings continue to be identified and now some remediated buildings have failed. How can we improve the weathertightness of our buildings? All articles in one pdf.
    • The what, why and where of leaky buildings
    • What’s happening with remediation? – Challenges in remediation / How much is too much? / Compliance the key
    • Ventilation drying in cavities
    • Forum shares local and international ideas
    • Flashings keep water out

  7. #7
    Join Date
    Sep 2008
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    7,627

    Default

    Quote Originally Posted by newbrew View Post
    One building i'm interested in has been diagnosed with leaky problems (not fully leaky but there will be quite a big cost of repair). I'm wondering how the body corporate will go about raising the extra (I assume) funds needed to pay for the repairs. Is this something i can find out in the body corporate rules perhaps?........................

    The reason being is that there is a big difference to being hit with a one off $20k levy or 20 annual $1k levies. I do know I should be staying away from leaky buildings but am interested all the same.
    they won't have anything like that in their rules

    meaning the BC would seek advice, then put it to a vote and then try to implement the action voted

    there is more that could be said

    but only 2 words that should be said

    "stay away"

    if i 1 off levy of $20k puts you off

    an additional $1k added to the regular BC charges for for the next 35 years

    isn't going to make it a better long term investment
    have you defeated them?
    your demons

  8. #8
    Join Date
    Oct 2005
    Location
    Auckland, NZ.
    Posts
    621

    Default

    Why buy someone elses problem?

    Forget about this apartment - find another one - posters on here will know the non-leakers.

  9. #9

    Default

    dont waste time on leaky buildings. there are much more better and solid properties you can invest.

  10. #10
    Join Date
    May 2008
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    3,626

    Default

    Quote Originally Posted by newbrew View Post
    Thinking about buying an apartment in auckland. One building i'm interested in has been diagnosed with leaky problems (not fully leaky but there will be quite a big cost of repair).
    I think I know which one you mean.

    Quote Originally Posted by newbrew View Post
    I'm wondering how the body corporate will go about raising the extra (I assume) funds needed to pay for the repairs.
    From the owners, of course.
    About $50k per apartment.
    Just buy it $50k under the current asking price.


 

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