I initially thought that this part was going to be difficult! However all the news and TV shows have done the story and background for me. Namely apartment builds with cheap parts and materials that literally go up in flames or crack up etc… So all I can add are the parts that are arguably not political correct and my own opinions and conclusion.
They type of house you should buy in Australia is the stand alone house and land especially if new. As a purchaser there are laws that protect you from cheapskate building companies although there is more to it… That said it is all about the contact to build – make sure it is legit with no ‘funny’ clauses. For example if they don’t finish the house on time they are obligated to pay you a reasonable compensation. If the house is leaking they have to fix it and so forth. However they can’t do anything about your noisy, smelly and hoarder neighbours!
Perhaps my view to buy a stand alone house is conservative with a capital C but it is only logical.
I also feel that foreign buyers and those new to the country are being done over by real estate agents and internet articles on negative gearing etc… They are there to sell not be your friend for life. The search engines like Google and Yahoo also add to the problem as they customise to all the ‘positivity’ and literally fake news to met your desire to buy a house or apartment in the ‘right’ areas not the problems with the construction industry and ultimately the house or apartment. The construction industry is a very important part of the economy and understandably why there is caution on reporting and placing blame. Although there is more to the problem than just the key actors. Perhaps a student would like to tackle the industry in a thesis? Ultimately I do think it is the fault of the government especially the apartment building regulation side of things including allowing rebirthing or construction companies leave a trail of bad buildings that convienently go bust.
In the mean time and while the problems exist, do not buy a new apartment in a high rise, especially a new one and don’t consider an older either if it has been renovated! Buy a newly built house, think carefully about a new unit/townhouse in a small low rise complex or an older apartment with it’s problems sorted.
*This series of articles should not be treated as financial advice. They are observations and opinions.