Shocking pictures reveal ‘horror’ in home

An Aussie homeowner spent all her money to buy an apartment. But she now living a nightmare as it literally crumbles around her.

A Melbourne woman living in an apartment, who was terrified that the building would collapse, has been forced to stay as she watches the place crumble around her with repairs to the building estimated to cost a whopping $1.5 million.

Chunks of plaster have come crashing down from the wall and wind blows through gaping holes in Serena’s* apartment but she said she is trapped – with no way to fix the problem or alert the authorities without risking becoming homeless.

She is claiming that “horrendous” strata management over the years – an industry that has come under increasing scrutiny in Australia – has left her and other apartment owners in an impossible position after failing to act.

At least one in five Australians now live in strata-titled properties such as apartments and townhouses, adding up to millions across the country with 350,000 strata schemes in Australia. But millions more Aussies could be impacted in the coming years as high density housing is touted as the answer to solving the housing crisis.

In her 50s, Serena purchased the apartment, which is part of a 32-unit block, two years ago to give herself housing security.

But last Christmas her internal wall dropped away from her ceiling. The gap was enough to see through when she stood on her bed and she can now stick her thumb through it.

Meanwhile, the external wall had cracked enough in her kitchen to allow wind to pass through.

“I put contact over it to keep the chill of winter out,” she revealed to news.com.au.

“It was very scary when I had chunks of plaster falling off the wall. The contact is doing its job in stopping bits from crashing onto my bench.”

The issues in her kitchen began last year. Picture: Supplied

But a shocking deep dive into documents related to the apartment block led Serena to uncover that issues with the building’s foundations and cracking were raised in 2015.

In a report from 2015 seen by news.com.au, it found the cause of the foundation issues had been due to poorly maintained storm and sewer piping and there was evidence of sewer blockages. It also warned the issue was “severe”.

‘The building will fall over’

Yet, Serena believes no action was taken. Then a building inspection arranged last year left the owners in “shock”.

“The story was that if we don’t do something in 12 months the building will fall over. It was then $70,000 to get an opinion to come up with a solution,” she said.

“So I spent a good six months paying for storage. I thought at least, if I’m dead, if the building collapses my kids will at least have my stuff.”

In 2023, an expert warned just six weeks after an initial inspection that there was no longer an “economically viable repair option” for the building’s cracking and foundation issues.

They said repairs would require every apartment owner to vacate with their belongings and cost between $1.4 million and $1.5 million.

Doing nothing would result in the council “certainly” issuing a show cause notice as to why the building should not be vacated, the expert warned.

“I am now firmly of the belief that since remediation is not viable, that selling all units

individually or selling all in one line to a property developer is the only viable option,” they said.

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The woman has been forced to keep her wall together and the wind out by using clear contact. Picture: Supplied

The expert estimated selling all the units together would be worth around $2 million but flagged that each owner would have an expectation that their apartment is worth around $220,000. Yet to sell the land as one block, owners would end up with just $84,000.

“The damage has been going on for too long and progressed to a state where it is of

such an extent as to not be economically viable to repair and the cost of redeveloping the

site due to high and escalating construction cost makes the underlying land value not

attractive enough to sell at a price that would influence lot owners,” he warned.

‘Inaction is ridiculous’

Serena said its left the owners in an impossible situation.

In October last year resin injections were used to stop the building sinking further into the ground – at a cost of around $100,000 in total for the owners – but since then more cracking has still appeared.

The damage to her apartment in the kitchen. Picture: Supplied

Further testing around five months ago revealed the building was “not about to collapse”, said Serena.

“That gave me reassurance that I could take my stuff out of storage again and that’s $240 a month I don’t need to be wasting,” she added.

“I got back to living. It looks unsightly. I’ve got contact all over my kitchen wall and coming into winter it was getting really cold and I have a funny video of a windy day with contact on the wall sucking in and out.

“The fact I’m having to resort to putting contract on my interior wall because of inaction is ridiculous.

“It’s an external wall, it’s common property, I can’t do anything about it. I just have to live with it until somebody from the management pulls their finger out. We need to get something happening and get this fixed.”

She said the costs have added up including $2880 for a year of storage, $7000 for a newly renovated bathroom that is now damaged and psychology visits for the stress costing $350. She estimates she would need to spend $11,000 on a new kitchen.

The cracking has continually gotten worse. Picture: Supplied

A geotechnical distress investigation report from this year states “movement and distress” has resulted in “severe brick work and plaster cracking, settlement, and wall rotation”.

It noted that while the movement had become “worse” recently, it had most likely been happening for decades and was moderate to severe.

It blamed a number of factors for the movement including tree roots as well as leaks, insufficiencies and blockages in plumbing services including a burst water pipe, disturbance to the storm water pipes and a reported blockage of the council’s storm water drains.

‘Don’t want to be homeless’

Despite annual strata fees of $2275 annually, Serena claims there has been little action from the strata management and the insurance company will not cover the cost of repairs.

She can’t reveal the companies involved either.

“I’d love to expose them, yet also don’t want to be homeless,” she said.

“I have no idea what or who to consult. Suck it up is not my preference, yet it seems like that’s what it is for now.

“We are not alone in this. There must be a whole sh*t tonne of people, who are probably going through similar things and hitting the brickwall so many times they crumple in a heap at the bottom and burst into tears and go no where.”

Issues with cracking in the building were first identified in 2015. Picture: Supplied

The administration worker said the experience had been an “emotional rollercoaster” after purchasing the $205,000 apartment in 2022.

“I realised I can’t complain to the council because then there will be an inspection and then my unit would be condemned and I have nowhere else to go. I know I could sell – at a loss – yet my integrity and financial situation prevents me from doing that,” she said.

She has also recently discovered the contract with the strata management company has lapsed.

“They didn’t notify us that it had. It was only because I wanted the document to include with a Consumer Affairs complaint – which I have put on hold because if they tell us they don’t want us as customers, how do we get to the end of this? Who else is going to take us on?” she said.

The bathroom in 2023. Picture: Supplied

The bathroom in 2024. Picture: Supplied

‘No protections’

The issue has been at “moving at a snail’s pace”, with a report from this year revealing that one side of the apartment wall needs to be resupported using a qualified engineer. Another report recommended the same remedy back in 2015.

Delays to fixing the problems may cause “significant distress in the building”, the most recent report from this year said, and push up costs.

Serena said the strata system is “broken”.

“There really are no protections and these are not decisions that normal, run of the mill people would have any knowledge or experience with, and none to ask or get assistance from,” she added.

A corner of the kitchen in 2023 and the photo below shows it getting worse. Picture: Supplied

The corner of the kitchen in 2024. Picture: Supplied

‘Vulnerable and precarious position’

While Serena’s case may seem extreme, it is not entirely uncommon, said consumer action group Owners Corporation Network of Australia’s (OCN) director Dr Janette Corcoran,

She said the organisation is aware of other cases where owners feel abandoned or unsupported.

“Inconsistent communication, lack of urgency, and failure to address significant issues like structural repairs are recurring themes,” she told news.com.au.

“It is important to recognise that many management companies operate responsibly; however, without proper accountability and oversight, there are currently too many instances where owners and residents experience the negative consequences of neglect.”

Dr Corcoran added situations like Serena’s leaves owners in a “vulnerable and precarious position”.

“Without adequate repairs and insurance coverage, the building becomes unsafe and likely unsellable. Banks are hesitant to approve mortgages for potential buyers, and the structural issues significantly reduce the property’s value,” she said.

“To make matters worse, owners may lack both the financial means to address these problems and the authority to act, which typically requires co-operation from the management company and strata committee.”

The bedroom wall in 2023. Picture: Supplied

The bedroom wall in 2024. Picture: Supplied

It underscores the urgent need for greater oversight in the residential strata sector, she added. “OCN strongly believes that the state of Victoria must establish a Strata Commissioner to provide this oversight and to strengthen regulation to improve safety and wellbeing for both owners and tenants,” she said.

New South Wales and Queensland already have Strata Commissioners in place, and they play critical roles in protecting the interests of strata owners and residents, she noted.

Their responsibilities include overseeing the conduct of strata management, promoting dispute resolution pathways, ensuring compliance with strata legislation, and offering guidance on the rights and responsibilities.

“A Strata Commissioner in Victoria could undertake similar functions, which would help prevent cases of neglect and mismanagement like the one described,” she explained.

“With the Victorian Government’s Housing Statement advocating substantial growth in apartment living over the coming years, the need for a Strata Commissioner is more pressing than ever. As apartment and residential strata developments continue to rise, so too will the complexity and volume of issues within these communities.

“A dedicated office would provide much-needed oversight, ensuring that Victoria’s strata owners and residents are not left vulnerable to poor management practices.”

Cracking in the shower walls as well. Picture: Supplied

Calls for national inquiry

In September, a group of Australian consumer advocacy associations called for an urgent inquiry into the strata management industry.

The group, which included Choice, the OCN, the Australian Consumers Insurance Lobby (ACIL) and seven others, called for a national probe into the sector with an open letter to Treasurer Jim Chalmers.

“This action is necessary to safeguard the interests of millions of Australians currently living in strata-titled properties, and to protect the interests of future strata owners,” the group said.

The NSW and QLD governments have supported the probe.

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