Chilling story every Aussie homebuyer needs to hear

A shocking new investigation has revealed a major pitfall that homebuyers are falling into without knowing.

A new investigation has revealed major concerns for Aussies who are looking to buy a home in an apartment block.

Single mum Bethany Evans put down a $100,000 deposit on a three-bedroom apartment at the beleaguered Shenton Quarter development in Perth, in October 2021.

However, more than two years later and she is yet to move in and there’s no current date set for that to happen, according to ABC’s 7:30.

Problems for the single mother first started at the beginning of the year when she said a “red flag” left her fearing the worst.

Bethany Evans put down a $100,000 deposit on a three-bedroom apartment at the beleaguered Shenton Quarter development in Perth, in October 2021.

The Construction Forestry Mining Energy Union (CFMEU), an organisation that represents thousands of construction workers in WA, released a picture from the development site in March showing substantial cracks in the concrete and alleged there were structural issues.

However, the developer insisted this was not the case and assured Ms Evans that things were fine.

After seeing legal advice and looking at her contract, she found that she had no way out, but remained hopeful that she could be moving in sometime in early 2024.

CFMEU released vision of cracks in the concrete, which it claimed was evidence of structural issues.

However, sadly a few weeks ago workers dashed those hopes when they walked off the site.

The builders, BGC, explained that its decision to remove workers from the site was due to a “dispute” with the developer, IRS PW, over alleged engineering and design issues.

The developer hit back, insisting that the project has met all necessary requirements, saying: “The project is 95 per cent complete, has been comprehensively monitored and all aspects – including design, engineering and core structural integrity – assessed throughout the build process, and is on track for certification on completion.”

While Aussies are being enticed into buying into apartment complexes as major cities adjust to the strain of growing populations, there are major concerns that leave buyers at risk.

Workers walked off the site three weeks ago.

In WA, owners of apartments in buildings taller than three storeys do not have access to the state’s home indemnity insurance scheme.

“If the builder should go under, there is no protection on a building like this,” Ms Evans told 7:30. “I am not sure I can afford that.”

Meanwhile, another buyer, Janice Dudley, signed her contract in 2019.

“I think it’s an example of the regulation trailing,” Ms Dudley told 7.30. “There is the government providing incentives for people to buy apartments, in the interest of medium to high density. And yet, those people don’t have the same protections.”

WA Commerce Minister Sue Ellery shared proposals recently of potential mandatory inspections that could become part of new regulations.

“I find it frustrating when I hear that we can’t increase regulation or increase oversight to ensure better outcomes for consumers because that might slow things down,” she said. “We’re simply asking for the bare minimum, and that is compliance. The alternative is a legacy of buildings in this new rush to increase housing supply that are going to leave a large percentage of owners with awful headaches for many years to come.”

Originally published as Chilling story every Aussie homebuyer needs to hear