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  • 2 years ago
Australia urgently needs more homes, but it's never felt riskier for customers. Some who try to build end up with homes riddled with defects, and others are falling through gaps in government insurance schemes.

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00:00 Excuse me. Thank you.
00:04 Best friends Pauline and Kobe have been living in this caravan for two years.
00:09 They moved in to save money while their duplex was being built.
00:13 I long for my queen bed. Wouldn't it be lovely?
00:18 After repeated delays, their builder, Stroud Homes Northern Rivers, collapsed in May.
00:24 Their home wasn't finished, so they're waiting on insurance.
00:27 We're living on a friend's farm, a cane farm.
00:30 We are able to actually camp in the backyard basically.
00:34 And before this we've been at a showground, we've done a few house sits.
00:39 Not living in a car thankfully, but yeah.
00:41 Yeah, we are homeless.
00:43 A building inspector recently found dozens of defects,
00:47 including that the house didn't fit on its concrete slab.
00:51 The timber framing is overhanging the slab by 60mm, which completely compromises the structural integrity.
00:59 The gap is so large, the ground can be seen from inside the bedroom.
01:03 The frame is virtually sitting in mid-air with no support to offer the rest of the building at all.
01:10 Their insurance is unlikely to cover everything, but at least they were insured.
01:15 Zoe Croft wasn't.
01:17 This is the flooring we chose, bench tops, some of the tiles.
01:22 She paid a $94,000 deposit to the builder, who didn't take out home warranty insurance as required.
01:29 Zoe says around a dozen others have lost their deposits too.
01:33 I've cried enough tears. Yeah, it's been emotionally quite devastating.
01:40 In a statement, Stroud Homes said it was devastated to learn its former franchisee had left customers uninsured,
01:47 but did not return their deposits as it said the payments had been made directly to the builder.
01:52 NSW Fair Trading is investigating.
01:55 At the exact moment Australia needs to go on a building blitz, customers are having a crisis of confidence.
02:01 And the effect of that is instead of people building new homes, they buy existing homes.
02:07 And that threatens to undermine the national target of 1.2 million new homes by the end of the decade.
02:14 The government wants to build more houses, we're trying to do that. There's nothing that really protects us.
02:19 Protections that are long overdue.
02:21 [BLANK_AUDIO]
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