By Ally Mullord
The Home Owners and Buyers Association (HOBANZ) says homeowners should consider their options carefully before accepting a Government deal to partially fund the repair of leaky houses.
If leaky home owners accept the Government rescue package, up to half of their repairs will be paid for by Government and local councils in exchange for a guarantee not to sue.
HOBANZ executive director Roger Levie joined Firstline this morning to explain why homeowners need to “think very carefully” before making a decision about the assistance.
He says while the package will provide “some sort of assistance” for some homeowners, suing the local council through the courts is still a feasible option in many cases.
“In a lot of cases if there is a council and it’s a reasonable sized claim they’re most likely to get a better result,” he says.
“This idea that’s been floated by the Minister… that you win your case, but you lose because you spend so much money on litigation – it’s not actually factual.
“There are cases like that… but if you’ve got a good case and you’ve got a council to pursue than in many cases you’re going to get much closer to 100 percent of the cost than the 25 percent that they’re offering you.”
He says councils had an “overarching responsibility” to make sure homes were built to a high standard, and they have “failed people”.
Many leaky homes have dropped further in value following the financial crisis, leaving some homeowners with very little equity and unlikely to qualify for a bank loan to complete repairs.
Mr Levie says it’s these homeowners who need the most assistance, and it’s “disappointing” that the Government isn’t providing for them.
“I think the unfortunate thing about this approach is it’s not actually providing assistance to the people who… can’t come up with the other 50 percent or 75 percent to repair,” he says.
“If the Government’s going to put a chunk of money in to try and help, we would’ve hoped it went to those people most in need.”
He says homeowners need to look for independent advice, and HOBANZ is trying to provide as much guidance as possible.
“We’re not trying to advocate one way or the other, we just want people to come to us… we will give them good objective information and they can make good decisions, and that’s all we want.”
Watch the video for the full interview
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