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Lane Cove prices hit rock bottom!

Discussion in 'Real Estate' started by Jacque, 2nd Nov, 2005.

  1. Jacque

    Jacque Team InvestEd

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    I couldn't help the pun (sorry) but it will be interesting to see if the LC unit market is now affected by the umm.... slip up. I must admit I do feel sorry for the purchaser who only moved into the block last Friday. I bet he never thought he'd be moving so soon!
    Does anyone here have any investments in Lane Cove?
     
  2. Nigel Ward

    Nigel Ward Team InvestEd

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    One poor owner was interviewed saying that the unit had been nothing but trouble since he bought it so he was glad it had fallen into a hole! :eek:

    I guess this emphasises the importance of making sure your insurance (in this case the building insurance maintained by the body corporate) is current and adequate.

    Also, many body corporates seem to cut costs by not getting a proper replacement valuation done every few years and merely take a cpi increase on the replacement value. If you own units it pays to be active on your body corporate to make sure that proper sinking fund, workplace safety and insurance reports are prepared regularly and then acted upon.

    Cheers
    N.
     
  3. Alan

    Alan Well-Known Member

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    Can you imagine the 'finger pointing' that is going to go on with this one!


    It was a leaking pipe, therefore Sydney Water.........no.......it was the Geotech Consultant.........no........it was the Construction Company.........no....the RTA........no.........Project Manager.......no........it was the weight of the laundry on the balcony.........no.............


    :rolleyes:
     
  4. Tropo

    Tropo Well-Known Member

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    " I guess this emphasises the importance of making sure your insurance (in this case the building insurance maintained by the body corporate) is current and adequate. "
    Nigel,

    This is the biggest worry.
    Time will tell if insurance will pay.... :confused:
     
  5. Nigel Ward

    Nigel Ward Team InvestEd

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    Indeed. You'd like to think the Lane Cove Tunnel consortium would just fess up (assuming it's their fault) and cough up to compensate the owners with reinstatement or buy their units at pre-collapse market value...

    but I doubt that will happen. :rolleyes:
     
  6. MichaelWhyte

    MichaelWhyte Well-Known Member

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    Guys,

    My wife's a solicitor and she'd probably suggest the "but for" test in this situation. e.g. "But for the lane cove tunnel consortiom's construction the building would still be standing". If this test holds true then it is the intervention of the tunnel that contributed to the apartment block falling down.

    Typically the but for test is used in criminal cases, not civil ones. Sort of like when someone dies when they are punched and fall and hit their head on the concrete. Defence might argue that it was just a punch and shouldn't carry a charge of manslaughter. Prosecution will wheel out the but for test and argue that but for the punch he wouldn't have fallen and been killed. Their is a concrete link between cause and effect.

    Just rambling as always...
    Michael. :)
     
  7. Medine

    Medine Active Member

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    Was that a pun, too? :D

    Cheers, Medine
     
  8. BSB

    BSB Well-Known Member

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    Beware of ads for units in Lane Cove which have a sunken lounge listed as a feature!
     
  9. Nigel Ward

    Nigel Ward Team InvestEd

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    Well I'm glad someone was watching! ;)
     
  10. artgul

    artgul Well-Known Member

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    CBA offers an insurance to owners that covers the gap between what body corporate insurance and current market price (in fact one take the insurance for certain amount). I got some of those insurances because traying to get body corporate to agree on this point is not always possible.
    Do you think that would be appropriate coverage in a situation like the LC building?

    Thanks.
     
  11. Nigel Ward

    Nigel Ward Team InvestEd

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    Artgul

    It may well be. I guess one point to remember is that it is replacement value, i.e. what it will cost to demolish, clear and rebuild that is the key rather than current market price.

    Cheers
    N.
     
  12. Steve Navra

    Steve Navra Well-Known Member

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    Hmmm a BIG gap methinks ...

    Regards,
    Steve


    PS: Jacque ... when are you coming to visit me ... I suggest you come via Paramatta! (It will be much quicker :p )
     
  13. Stevec

    Stevec Member

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    I own a unit in lane cove. Have had it since 2000. It was my first investment and has doubled since purchase. I have lived in the area all my life, I think its a great place. Very easy to get to anywhere in a reasonably short time, except when holes threaten to swallow the roads! Easy access to the city down the fwy, or easy to get out west along the m2.
    It can't effect the prices in the area - I think. That red unit block would have to be in the worst location, right next to the busy gridlock that happens every day. Once the tunnel does open, that epping road strip should become alot quiter. I would still not buy anywhere near that strip though.

    Cheers,

    Stevec
     
  14. Jacque

    Jacque Team InvestEd

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    Actually I think it would be quicker to walk :)
    Ah, the benefits of working from a home based office around the corner.....!