- Samantha Reece
$10.5 billion defects claims
A new report has found has repair costs for new home owners have totalled $10.5 billion over the past decade as poor construction standards have left them battling leaks, cracks and other problems.
Financial comparison site Mozo released it Property Pain - Building Defects Report 2019 today, revealing new homeowners have been faced $10.5 billion in repair costs over the past decade.
The figure is based on ABS data on the number of building completions in the past 10 years.
The report also found most new and newly renovated apartment and house owners surveyed have been plagued by defects that have cost them $6,434 and $5,839 respectively.
At a glance:
Financial comparison site Mozo has released a new report, showing new homeowners have been slugged $10.5 billion in repair costs over the past decade.Leaks and cracks were found to be the most common issues faced.The average apartment defect bill was $6,434 compared to $5,839 for a house.
To deal with the issues, 60 per cent of apartment owners facing defects had to contribute to a sinking fund and 24 per cent were forced to pay special levies to fund the repairs.
The findings come as regulators continue to grapple with the fall out over the serious safety issues plaguing apartments in Melbourne’s Southbank and Olympic Park, Erskineville, Zetland and Mascot in Sydney.
Mozo property expert Steve Jovceski said while buying a bright and shiny new property might seem like a good idea, the reality for many Australians is one of costly repairs and years of remediation.
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