Repair-your-own units going cheap

Prospective buyers are being offered Eden Mews units at two different prices. Picture / Kenny Rodger

Owners of Mt Eden's 46-unit Eden Mews are offering buyers a novel choice - either buy a unit at a discount due to weathertightness problems, or pay full asking price and the seller foots the repair bill.

Outside decks of the complex at 852 Mt Eden Rd are undergoing extensive repairs. Each unit will take around a week to fix.

Many investors bought the units, described in a marketing promotion as "easy-care individual homes positioned to capture the sun and offer an excellent opportunity for the astute family or executive".

Craig Leishman of body corporate secretary Crockers has defended the complex, saying it "is not a true leaky building requiring a reclad but has minor issues which are being addressed with targeted repairs".

He said problems were confined to Eden Mews' decks where rain water was pooling around the gutters and causing problems with untreated timber on walls between the decks.

Owners wanting to sell have found a novel way around the problem, offering two prices to potential buyers.

Full asking price for the units is around $360,000, which some owners expect to get, as long as they pay the repair bill. But units can be bought for just $340,000 mid-repair, with the seller having no further involvement. Estimates of the repair bills range from $10,000 to $20,000. One owner said some sales had been made on this basis.

David Russell of the Consumers Institute was aghast that buyers would even consider a unit.

"You'd have to be out of your cotton-picking mind to buy one!" Mr Russell exclaimed. "It's a matter of buyer beware, but at least the owners are coming clean about the problems."

Anyone considering a unit should get a detailed pre-purchase report.

Auckland lawyer Paul Grimshaw was less critical. "I see no real difficulty, provided the new owner knows what they are taking on."


Crisis leaves innocent owners in the lurch

What's the problem?
* Thousands of homes are leaking and rotting through bad design, bad building practices and unsuitable materials. Thousands of innocent owners suffer from financial, emotional and physical distress.

How many homes are affected?
* Some say it would cost up to $1 billion to fix 15,000 houses, but industry estimates put the figure nearer 40,000. It could be much more. The Government's Weathertight Homes Resolution Service said on July 19 that it had completed 3702 assessments of claims, had a further 1785 awaiting decision, 474 going through the process and was assessing a further 450.

What has the Government done?
* The Prime Minister dismissed the issue as a Herald beat-up. Eventually the scale of the problem became so obvious that the Government acted. In 2002 it passed the Weathertight Homes Resolution Services Act, which set up a tribunal for homeowners but did not fully address the issues.

Have things improved?
* Yes. The Government has taken some steps urged by the whistleblowers - treated timber reintroduced, new safeguards like double-drained and vented wall cavities, and builders are about to be regulated.

So it's all fixed?
* No. Leaky homes are still being built. Consultants who fix them say the problem will not be solved without a huge lift in skills and education in the building industry.