Browse Forums Buying Land 1 Apr 26, 2019 2:00 am Hi All,
I have purchased a lot at an all-time high in one of the developing estates in the South East suburbs of Melbourne. Since I bought it last year, the land prices have gone significantly with salespeople giving discounts on land which was unheard of. Now the question is should I walk away from the deposit (18K)which I may be able to recoup when a buy a similar sized lot in a new estate 2Ks from my estate or settle the lot which I bought at a ridiculous price. If I do settle it I don't know I'll be able to sell it at the contract price + fees to make break even as the market will not bounce back up overnight. I don't even know how long it will take for the market to like last June 2018. I can't justify the price I'm paying for the lot anymore and yes I want to take advantage of the market as the saving is the neighbour of 50K *** I'm having issues obtaining finance and I don't want to ask for handouts, another reason for this post. Any advice is greatly appreciated Cheers Re: Walk away from my 18K land deposit or somehow settle? SE 2Apr 26, 2019 7:38 am This is not a legal advice but failing to settle on the contract is a breach of contract and damages may be sought by the vendors. They may take legal action for the difference between the price paid by you, less the price it is sold to someone else + legal costs. If I was the vendor I would. I think you have done your money and it may be more than your deposit, so it seems you will not benefit from market downturn. Get a cold shower, then legal advice. Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Re: Walk away from my 18K land deposit or somehow settle? SE 3Apr 26, 2019 9:58 am Thanks, for your reply, I should have been clearer, I have updated the post now but it's I'm struggling to obtain finance and would rather not ask for handouts. I bought the land I repeatedly ask the sales guy about the worst case scenario and he without fail said 'you would forfeit your deposit if you can settle that's it, but I know what's not how contracts/law work. He even said to me at the time of buying If I'm having issues securing a loan, come to him a few months before settlement (which I did) and he will simply find another buyer to take over my contract and I'll get my deposit. but now the same guy is and I quote 'It's impossible to find a buyer for my land'. Hope this helps future readers Re: Walk away from my 18K land deposit or somehow settle? SE 4Apr 26, 2019 10:07 am Also, if even I could settle this not subject to finance property, how do you justify a 50K straight up saving with a lot that's not even 2k from the current estate and is bigger in size? more or less the same location, cheaper price, same potential, and condition. This money I could use towards house construction which I don't have at the moment Looking forward to your reply Cheers Re: Walk away from my 18K land deposit or somehow settle? SE 5Apr 26, 2019 10:26 am I know with a house that the vendor is entitled to keep the deposit and if they then sell at a price less than the contract that was not honoured, they are entitled to the shortfall from the person of that contract. So I agree with “building expert”. The sales guy that said worse case scenario you lose your deposit probably wasn’t thinking the price would actually go lower, even if they did they might not know the proper legal obligations anyway. You need to obtain legal advice. Also you’re not the first person to buy at the peak of a market. Depending on long term you’re probably better to see it through, but that’s just an opinion. Re: Walk away from my 18K land deposit or somehow settle? SE 6Apr 26, 2019 10:29 am It does not change anything I said. The agent cannot give you escape because vendor will likely sue you for more than forfeited deposit. The 50 k saving is not open to you. The best outcome for you is to settle and in the longer term the prices will recover. Long term investment is your salvation. 45 years ago you could buy a home in East Brunswick for less than 10k, would it have mattered if you paid 15k? , now they are worth 850K Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Re: Walk away from my 18K land deposit or somehow settle? SE 7Apr 26, 2019 4:23 pm YOU said 2k down the road there is land 50k cheaper, but what is similar land in your street selling at,most areas have various differing prices,street to street can get big variations in value. Re: Walk away from my 18K land deposit or somehow settle? SE 8Apr 26, 2019 5:12 pm yeah cause sale is a bit of a desperate one and hence the saving. The lots similiar to mine in my current estate have gone down by only like 5K (which I know is nothing but I can't still justify the price I paid for my lot anyway and to see the market tank like that) but the large ones have gone down heaps. Lots in the new estate are significantly cheaper NOW and I'm getting a bargain on top on that and hence the hassle. I'm barely (yet to be approved) getting a loan for my current lot due to land val so buying a cheaper land makes more sense. In saying this, the vendor can up or down the prices as they will. The question is of the potential suing for more money as it's in the contract and I was gullible enough to believe the sales guy. If I can't secure a loan and I signed a not subject to finance contract, generally do the developers only keep ones deposit and move on? OR if they want to sue me for more money will they tell me upfront or like 2 months down the track of me advising I can't settle and them keeping my deposit Cheers I thought this would be a popular question but I haven't been able to find any similar posts. Perhaps I'm wording my searches wrong? When you have car insurance and the… 0 6623 I've got a challenge here. Background is the builder has cut too deep for the slab and the slab is now below the very substantial retaining wall. It's failed occupancy… 0 18401 AS4654.2-2012 External Membranes it is "Informative" but if you get water ingress your insurance assessor will go to this straight away and if not achieved, they will deny… 9 1908 |