Homeowners who bought loft-style apartments in Sydney received half of what they paid for it, but developers say it's a good deal because the 400,000 apartments are now ZERO
- Garland Lofts in Zetland, the inner east of Sydney, was evacuated in November 2018
- The building was deemed to be habitable as a result of water damage and failing fire systems
- Developers have offered owners $ 200,000 to discharge units that are now worth zero
Homeowners who paid $ 400,000 for units in Sydney ten years ago received half of what they paid to redeem the damned flats.
Garland Lofts in Zetland, the inner east of Sydney, was evacuated in November 2018 due to water damage and failing fire systems.
The attic of $ 7 million, 30 units would now cost more than $ 5 million to repair, because the building is also strewn with mold, wet carpets, falling plaster and abandoned roofs, showing strata documents.
Developers have offered $ 200,000 to unit owners, who generally paid between $ 400,000 and $ 500,000 for their properties in 2009, Australian Financial Review reported.
Garland Lofts in Zetland, the inner east of Sydney, were evacuated in November 2018 due to water damage and failed fire systems
Developers say that the apartment buildings are now worth nothing and that many owners do not have the money to cover the costs of the repairs, estimated at around $ 5million.
Lumley Insurance gave the owners an insurance payment of $ 1.7 million, despite coverage for up to $ 9 million, according to strata documents.
The money was used for temporary housing for owners and tenants after the evacuation.
According to documents, Garland Builders and the development entities – Garland 204 and Garland 204 Retail – have been dissolved.
Before evacuating the building, lawyers from Chambers Russell were hired by the owner's company to investigate legal options.
In the midst of fate, developers have offered $ 200,000 to the owners of the units – despite the fact that in 2009 they bought apartments between $ 400,000 and $ 500,000
The company also considered temporary fire protection to keep residents in their homes during repairs, but discovered that the option would exceed the cost of external housing.
The building is just a suburb away from the Mascot Towers apartment building, where residents of 132 flats were evacuated last month due to cracks.
The development stems from the widespread fear that new apartment buildings in Sydney may not have been built properly.
Opal Tower in Sydney's Olympic Park was considered unsafe on Christmas Eve after building materials started to crack and residents were evacuated.
The state government is currently working on a whole series of potential reforms for the construction sector after the evacuations.
The building is just a suburb away from the Mascot Towers apartment building (photo) where residents of 132 flats were evacuated last month due to squatting
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