I have an IP in a 1960s era brick building, comprising 18 one, two and three bedroom units. Mine is a one bedder on the top floor (4 storeys in all).
I just received a letter from the strata manager to say that - due to bad practice by the original builders - there is a build-up of mortar in the cavity brickwork, causing moisture to penetrate horizontally through the walls in some of the lower level units. This has resulted in mould and damp on the inside of the affected walls.
Also, the mortar has dropped onto some of the brick ties, causing corrosion, and this has led to some cracking because the failing ties are now allowing some movement of the bricks.
There has been a report by an engineer, suggesting the two longest walls of the building (it's a long rectangle), need to be rebuilt, and suggesting the body corporate call for quotes. We have the AGM in 2 weeks; most of the building is tenanted, with just 2 or 3 owner-occupiers.
It is obvious this will be really expensive to fix, very disruptive (there will be scaffolding blocking access to the parking), very noisy, dust-generating, etc.
I have just spent $5000 on improvements and have new tenants paying $400 a week till January 2014. I imagine most tenants would have issues with living on a building site, making it hard to find tenants at current market rent. I expect to have to offer my own tenants a reduction to offset the inconvenience and I will struggle to find money for a special levy in any case, since I am retired.
I am seriously thinking that the entire property may be worth more as a development site, because of its age and condition and under-capitalisation, and I am wondering how to check out the feasibility of that so as to propose it at the AGM as another option.
Any thoughts how to proceed? The next AGM is just to vote whether to get quotes, but I'd like to get some other ideas on the table too. Would really appreciate any input or alternative courses of action.
I just received a letter from the strata manager to say that - due to bad practice by the original builders - there is a build-up of mortar in the cavity brickwork, causing moisture to penetrate horizontally through the walls in some of the lower level units. This has resulted in mould and damp on the inside of the affected walls.
Also, the mortar has dropped onto some of the brick ties, causing corrosion, and this has led to some cracking because the failing ties are now allowing some movement of the bricks.
There has been a report by an engineer, suggesting the two longest walls of the building (it's a long rectangle), need to be rebuilt, and suggesting the body corporate call for quotes. We have the AGM in 2 weeks; most of the building is tenanted, with just 2 or 3 owner-occupiers.
It is obvious this will be really expensive to fix, very disruptive (there will be scaffolding blocking access to the parking), very noisy, dust-generating, etc.
I have just spent $5000 on improvements and have new tenants paying $400 a week till January 2014. I imagine most tenants would have issues with living on a building site, making it hard to find tenants at current market rent. I expect to have to offer my own tenants a reduction to offset the inconvenience and I will struggle to find money for a special levy in any case, since I am retired.
I am seriously thinking that the entire property may be worth more as a development site, because of its age and condition and under-capitalisation, and I am wondering how to check out the feasibility of that so as to propose it at the AGM as another option.
Any thoughts how to proceed? The next AGM is just to vote whether to get quotes, but I'd like to get some other ideas on the table too. Would really appreciate any input or alternative courses of action.
We've had one quote for $20k to fix the crack. This includes moving the power line which was $7,000 alone. Energy Australia has come out to inspect the building but they don't believe that the power lines are too tight. However, they have loosened them. I believe we could take this cost out of the quote. 