Seniors who are outnumbered in older strata title developments will be the most disadvantaged by proposed changes to NSW strata title legislation, the Combined Pensioners and Superannuants Association has said.
The draft legislation proposes to lower the vote for termination of strata schemes covering apartment blocks from 100 per cent to 75 per cent agreement.
However the association says the result will mean a dramatic reduction in security of tenure, particularly in older complexes situated in high-demand areas ripe for redevelopment.
"Particularly hard hit will be the 'little old ladies' who won't be able to live out their last years in their apartment," senior adviser Charmaine Crowe said.
"Unable to buy in the same area, they will most likely be forced into a nursing home."
The legislation proposes statutory compensation for dissenting owners, however the association said this would only cover their portion of the sale proceeds and removal costs.
"It is very unlikely that a person receiving compensation will be able to afford a replacement apartment in their area," the CPSA's submission to the State Government on the issue said.
"Strata schemes that are likely to be targeted are likely to contain older, lower priced units.
"In areas so targeted all such schemes would be under threat, so that it is hardly attractive to buy into one, while newer, less at risk apartments would be outside an affordable price range."
The CPSA has proposed compensation for dissenting owners should include replacement accommodation in the same area."
University of NSW expert Cathy Sherry has argued the changes would empower private citizens to forcibly acquire other people's homes.
"People who live in their own apartment face the risk that their neighbours, investors in their building or a developer will decide that they can make a lot of money out of redeveloping land, and irrespective of another owner's desires or needs that owner will be forced to sell," she wrote.
She said there was no requirement that the building should be run down.
"It may be one of the many well-maintained small schemes in Sydney, but because it is in a high-value position with the potential for higher density redevelopment and a very hefty profit, it will be a prime target for renewal.
"In some buildings, the only benefit will be a nice fat profit for other owners and a developer, as well as more high end housing for those who can afford it."
More information at www.nsw.fairtrading.gov.au
