A A A

You must be registered and logged in to reply to posts or post new topics. Click on "How to Use This Forum" for simple instructions on how to get on board. NB: Please do not use your real name or email address as your screen name - if you do it will be changed to something less insecure.

Avatar

Please consider registering
Guest

Search

— Forum Scope —




— Match —





— Forum Options —





Minimum search word length is 3 characters - maximum search word length is 84 characters

Register Lost password?
sp_Feed sp_PrintTopic sp_TopicIcon
Why strata needs to get out of Fair Trading NOW!
sp_BlogLinkWhite Read the original blog post
Avatar
Jimmy-T
Admin
Forum Posts: 5264
Member Since:
06/01/2014
sp_UserOfflineSmall Offline
1
06/01/2019 - 11:08 am
sp_Permalink sp_Print

The highly publicised problems at the Opal Tower in Sydney have brought some much-needed attention to the issue of new apartment blocks with serious defects.

They have also generated a predictable amount of finger-pointing, married to a considerable lack of self-reflection.  A long hard look at themselves is not a default activity for many politicians.

But the problems with strata are systemic and endemic, and they start at the very top in a culture that has traditionally seen apartment living as aberrant behaviour.  Wanting to live in a unit is unAustralian, mate.

As a consequence, apartment owners are usually the last to be considered when plans are made and, indeed, when things go wrong.

For instance, NSW’s defects bond – the two per cent of the building cost the developer must set aside in case of defects – has to be seen as a token gesture.

Expert estimates floating around at the moment place the likely cost of your average defect remediation at between 20 and 30 per cent of the cost of construction.

However, to get anything close to that, apartment owners often have to fight the developers in court. With the stakes sometimes running to millions of dollars, the odds – and highly paid lawyers –  are stacked against them.

By the way, in Victoria, a 75 percent vote by owners is required before that tortuous and treacherous process can even begin.

A sense of institutional neglect has led to growing calls in NSW demanding that strata be taken out of Fair Trading and given its own ministry, or at least a prominent part in a more relevant one.

To have a minister solely focussed on the state’s fastest-growing housing sector makes perfect sense. However, in NSW strata comes under Fair Trading which in turn is part of Innovation and Better Regulation, a Babushka doll of a department.

Earlier this year, the Real Estate Institute of NSW withdrew from government consultative committees, with their CEO Ian McKibbin saying: “Fair Trading do not have the knowledge, skills and experience to support the industry, and therefore put consumers at risk.”

He has a point. Apartment owners who go to Fair Trading looking for help on specific issues are offered simplistic advice and zero advocacy.

The obligatory mediation process is geared more to compromise than achieving a fair solution and if a case is elevated to the Civil Administrative Tribunal, a whole other set of rules, complexities and, occasionally, personal as well as legal opinions comes into play.

Meanwhile, Matt Kean, NSW’s Minister for Innovation and Better Regulation, has too many distractions. Two weeks before the Opal cracks appeared, he was taking a road roller to dangerous toys.

The next week, he was issuing warnings about unsafe barbecues (although with no mention of barbies on strata balconies). On the day of the great Opal exodus, he was busy warning people not to get locked into unfair gym contracts.

As for strata, in the past year he came close to opening every apartment block in the state to unlimited short-term holiday letting, as they did in Victoria, until a backbench revolt was threatened.  He also dealt with the flammable cladding crisis, after a fashion.

So where should strata live? It’s worth noting that the lead on the Opal issue was taken by Planning and Housing Minister Anthony Roberts.  Mr Roberts, coincidentally, was the architect of the radical strata law reforms that came into force in 2016.

You don’t have to join too many dots to see how strata could fit neatly into Planning and Housing.

But, in an election year, and with Minister Kean and Premier Berejiklian’s political careers closely intertwined, that would never be allowed.

A version of this column first appeared in the Australian Financial Review.

Avatar
Phil Gall
Newbie
Members
Forum Posts: 2
Member Since:
18/07/2017
sp_UserOfflineSmall Offline
2
06/01/2019 - 1:14 pm
sp_Permalink sp_Print

Great call on this Jimmy (yet again)!

The policy oversight and regulation the fastest growing segment of residential housing deserves better than it has been getting. And having it lost in the labyrinth of other unrelated matters in Fair Trading can’t be helping.

As is so often revealed on Flat Chat, strata living has its own unique set of issues that are poorly understood by too many people. It needs specialist and authoritative attention within Government. It must succeed as a legitimate alternative form of housing for the well being of the entire growing population.

Fair Trading is supposed to be about consumer protection. On this score having oversight being provided by Fair Trading and the Minister for a Better Regulation has seriously failed apartment owners. Will still have apartment buyers getting defective and unsafe buildings, the peaceful and secure living of residents invaded by unwelcome holiday makers, and expensive time consuming mechanisms for resolving issues of non compliance with the Strata Schemes Management Act – a nightmare for Strata Committee volunteers and lot owners alike.

Avatar
LogicprObe
FlatChatter
Members
Forum Posts: 3
Member Since:
08/06/2017
sp_UserOfflineSmall Offline
3
09/01/2019 - 5:24 pm
sp_Permalink sp_Print

It seems far too logical to put it under Planning and Housing.
Maybe under Gambling and Racing?

Avatar
Bunyip1
FlatChatter
Members
Forum Posts: 19
Member Since:
14/06/2018
sp_UserOfflineSmall Offline
4
11/01/2019 - 9:34 am
sp_Permalink sp_Print

LogicProbe,

Gaming and Racing? maybe, as it’s a gamble to purchase into a strata unit and a race for builders, developers and strata management and politicians to see who can run as far away from blame when the proverbial hits the fan!

Avatar
Jimmy-T
Admin
Forum Posts: 5264
Member Since:
06/01/2014
sp_UserOfflineSmall Offline
5
11/01/2019 - 7:36 pm
sp_Permalink sp_Print

Believe it or not, until relatively recently, strata in Queensland came under the Ministry of Tourism, Horse Racing and Wine Promotion. Honest!

Forum Timezone: Australia/Sydney

Most Users Ever Online: 518

Currently Online:
28 Guest(s)

Currently Browsing this Page:
1 Guest(s)

Top Posters:

Whale: 1584

kiwipaul: 584

struggler: 458

Austman: 346

Millie: 214

Billen Ben: 205

Cosmo: 199

considerate band fair: 160

Boronia: 144

FlatChatFan: 140

Newest Members:

WRstrata

matttt

AR93

Just_Dave

jk91

jacranga

RH PERSISTANT

Nhjan

Roosters

LM

Forum Stats:

Groups: 3

Forums: 40

Topics: 5063

Posts: 23889

 

Member Stats:

Guest Posters: 243

Members: 5777

Moderators: 6

Admins: 1

Administrators: Jimmy-T

Moderators: Sir Humphrey, scotlandx, Lady Penelope, Stratabox.com.au, Jimmy-T, Liveby5