The darker side of apartment living surfaces after investigation

ABC NEWS (Australia)

From hidden costs to fees for no service. Apartment owners are being ripped off and many don't even know it. Support for a federal inquiry into the strata industry is growing. After four corners exposed the dark side of apartment living.

Transcript

00:00For years, Karen Stiles has been hearing horror stories about strata living.

00:07I've had people sobbing on the phone. People have lost their homes, they've lost their

00:13marriages. It's a terrible, terrible situation.

00:17On behalf of apartment owners, she and a host of top consumer groups are calling on the

00:22federal government to intervene.

00:24A federal inquiry will expose the underbelly of this industry.

00:29Strata legislation is governed by the states, but some politicians agree national scrutiny

00:35might be the way to go.

00:37The NSW government would be keen to work with the Commonwealth on some kind of national

00:41inquiry or investigation.

00:42Queensland too says it will support a federal inquiry, and industry groups recommend one

00:48as a way to restore trust.

00:50The majority of strata managers out there in the community doing a wonderful job would

00:56be cringing at what they saw last night, and recognising that their reputation has

01:03been tarnished.

01:04A Four Corners investigation has exposed how the strata industry is rorting apartment owners.

01:11Many are unaware that hidden fees, secret commissions and kickbacks are being pocketed

01:15at their expense, and those that find out can do little to recoup the money.

01:21Building more apartments is critical to addressing the housing crisis.

01:25Almost as important will be convincing buyers that they'll be protected from unscrupulous

01:30strata companies.

01:32The federal government says it's open to dialogue about what the Commonwealth could do.

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