Homeowners who bought loft style apartments in Sydney are offered HALF of what they paid for them - but developers say it's a good deal because the $400,000 flats are now worth ZERO
- Garland Lofts in Zetland, Sydney's inner-east, was evacuated in November 2018
- Building was deemed inhabitable due to water damage and failed fire systems
- Developers have offered owners $200,000 to offload units now worth zero
Homeowners who paid $400,000 for units in Sydney decade ago have been offered half what they paid to offload the doomed flats.
Garland Lofts in Zetland, Sydney's inner-east, was evacuated in November 2018 due to water damage and failed fire systems.
The $7million, 30-unit loft would now cost more than $5million to repair as the building is also riddled with mould, wet carpets, falling plaster and leaving roofs, strata documents show.
Developers have offered $200,000 to the unit owners, who typically paid between $400,000 and $500,000 for their properties in 2009, the Australian Financial Review reported.
Garland Lofts in Zetland, Sydney's inner-east, were evacuated in November 2018 due to water damage and failed fire systems
Developers say the apartment buildings are now worth nothing and many owners do not have the money to cover the costs of the repairs, estimated to be around $5million.
Lumley Insurance gave the owners a $1.7million insurance payout, despite coverage for up to $9million, according to strata documents.
The money has been used towards temporary accommodation for owners and tenants following the evacuation.
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According to documents, Garland Builders and the development entities - Garland 204 and Garland 204 Retail - have been wound up.
Before the building's evacuation, lawyers from Chambers Russell were hired by the owner's corporation to explore legal options.
Amid the doom, developers have offered $200,000 to the unit owners - despite purchasing apartments for between $400,000 and $500,000 in 2009
The corporation also contemplated temporary fire protection to keep residents in their homes during repairs but found the option would exceed the cost of external accommodation.
The building is only a suburb away from the Mascot Towers apartment block where residents of 132 flats were evacuated last month due to cracking.
The development comes amid widespread fears that new apartment buildings in Sydney may not have been built properly.
Opal Tower at Sydney's Olympic Park was deemed unsafe on Christmas Eve after building materials began to crack and residents were evacuated.
The State Government is currently working on a slew of potential reforms for the building industry in the wake of the evacuations.
The building is only a suburb away from the Mascot Towers apartment block (pictured) where residents of 132 flats were evacuated last month due to cracking
