Paid Deposit for Land. Lost My Job. Settlement in Jan 2019

LTinahz on 11/12/2018 - 22:14
Last edited 12/12/2018 - 02:46 by 1 other user

Hello,

Been reading and observering a lot here but a first time poster.

Will try and keep it short even though I really need some life saving advice. I had put $44k deposit for a block of land south east of Melbourne in one of the very talked about estates in Melbourne. It was supposed to title in June July 2019. I lost my job early Nov 2018 and still searching.

Now my conveyancer contacted me advising that the developer is titling the land in Jan 2019. I am in no position to settle the land as no bank will approve my loan without a job. I can't nominate anybody because of the no nomination clause in the contract. Plus with the current property market scenarios I am not too sure if buying this was the biggest mistake I made in May 2018. As per my research I bought at the peak.

I am really really stressed as I can't afford to lose $44k(3 years worth of saving).

I want to hear from the property/finance gurus. What are my options? Really looking for some constructive advice.

Much appreaciated,

Home & Garden

Comments

    • johnno07 on 12/12/2018 - 22:52
      +5

      100% this. If you're facing a potential loss of $40,000 (or even more) - PLEASE GET ACTUAL LEGAL ADVICE. OzBargain is great for bargains - not for legal advice.

      • moo on 13/12/2018 - 11:30
        +1

        Agreed. Unfortunately a lot of OzBargainers are part time arm chair lawyers, in which comments could cause unintentional consequences.

        • HighAndDry on 14/12/2018 - 11:45
          +2

          To be fair, even some OzBargainers who are (claim to be) full-time actual lawyers have proven to be no better…

  • darkchoc on 12/12/2018 - 22:23

    OP - talk to the developer. Not the sales guys at the developers offices - they would not be the right people with the right knowledge.

    Keep asking until you speak to the person that is willing to help and has the right knowledge.

    Things to try: ask the developer of you can modify the contract to have nomination clause and try and have them sell it for you. Maybe speak to real estate agent to see what the resale value is. Ask them if you can break the contract? Ask if they could refund since of the deposit. Contact consumer affairs for fiance and help.

    Good luck

    • HighAndDry on 14/12/2018 - 11:48
      +1

      Keep asking until you speak to the person that is willing to help

      This person likely doesn't exist, because there's no obligation on the developer to help OP.

  • KangaBanga on 12/12/2018 - 23:08
    +8

    The land there has probably just lost 20% in value from peak. Fringe estates are often the hardest hit in a downturn. That's what u get for speculating on land and being one of the late comers that got sucked in. Many are learning the hard way property does not always double in price every 10 years.

    Market already begun falling after APRA rule changes late last year, most smart investors know that and have already sold out or flipped their properties.

    Job loss is irrelavant at this point.

    Many people are already forfeiting their 10% deposits in a falling market. If you somehow manage to get a loan and settle you are stuck with a negative cash flow asset, which you will have to pay for every year. This is another big mistake rookie investors make, holding on to an investment that is generating negative cash flow and capital loss.

    talk to someone with substantial property investment experience over a few cycles and you'll get the same advice. Better cut your losses while you still can. you can always take your time find a job and buy back as another ozbargainer said, in a couple years prices will probably be back to 200k+ levels again for the land. thats gonna save you 200k+interest.
    Good luck

    • Trying2SaveABuck on 14/12/2018 - 17:52

      Harsh but true

      i agree with everything but the part about people knowing when to 'pull out' no one can predict a crash or a market down turn sure there are some signs but for as long as i've been an adult they have been talking about property dropping the key is to not listen and give it ago because negativity is everywhere.

      But as with all investing sometimes you win sometimes you lose its just shit when your 1st big investment is a loss that hits hard.

  • the Unforgiven on 13/12/2018 - 02:26

    wouldn't the insurance pay for this if you lost your job?

    • HighAndDry on 14/12/2018 - 11:49
      +2

      What insurance?

  • yoonibear on 13/12/2018 - 02:36

    Correct me if I'm wrong but perhaps you could go see a lawyer? They'll be able to give you legal advice and where you stand where a conveyancer wouldn't. It's expensive but at least it's one avenue to explore

  • kizashi on 13/12/2018 - 04:09

    I agree with others that have said, you should seek professional legal advice. A complicated situation, and think you do not need incorrect information complicating a difficult stressful situation. Good luck

  • Bludgeman on 13/12/2018 - 07:55
    -2

    Challenge the contract as not all information was disclosed to you initially. Villawood use a private fibre provider to service their estates. By you never having access to Telstra, Optus, vodafone etc it will be detrimental to your wellbeing & liveability within the estate.

    • HighAndDry on 14/12/2018 - 11:50
      +2

      This is laughably not a valid reason to try and get out of a contract - unless the contract specifically said OP would be able to access Telstra, Optus, Vodafone, etc.

  • Brick Tamland on 13/12/2018 - 09:10

    100% get a property solicitor to get proper advice. I was paranoid about a $8,000 deposit on my block of land and I went with a solicitor instead of a conveyancer, so for $44k you would be crazy not too.

    Councils can be extremely slow to process land divisions so you might find you have an extra month in the that process.

    But go out have a look at the block and see how far away they are. If there are street lights and street signs then you probably are set for jan titles.

  • JoBevo on 13/12/2018 - 09:15

    As other have mentions, I also brought an off the plan a few years back and the developers told us settlement was in October but we didn’t actually settle until February.

    Best to talk to Realstate agent and developer to get a better idea on when settlement will most likely happen, also talk to the developer as they can extend the settlement date at a cost but that should buy you more time. Go luck and I hope you get through this soon.

  • dealmaker on 13/12/2018 - 09:21
    +1

    You mentioned

    It was supposed to title in June July 2019.

    See if you can use this / abuse this in any way to get an extension. Use any documentation you have that evidences this.

    All the best man.

  • T1OOO on 13/12/2018 - 09:33
    -2

    how would the bank know you lost your job? just go through with it, and find another job!

    really you should have been already APPROVED if you are handing over a deposit!

    • brendanm on 14/12/2018 - 14:28

      Lol, approved for something that hasn't been titled?

    • Marty131 on 15/12/2018 - 11:27

      Don’t the bank usually ask for last x payslips when applying? Or are you saying if one has pre-approval sorted, they don’t ask to check again at time of loan start?

      • Eeples on 16/12/2018 - 09:24

        He is saying the latter.
        However, he has not applied for a loan yet (as the property is still untitled).

  • [Deactivated] on 13/12/2018 - 09:48

    People who wish for the market to crash is ignorant of the reality that, if they dont have large sum of cash to buy, it is actually much harder to buy than in a stable or slowly growing market.

    Unfortunately in OP's case, it is even more complicated. Land value goes down = bank valuation goes down = lending limit goes down.

    Loosing a job makes it worse.

    Best way is try your best to look for another job asap and negotiate to delay the settlement.

    Otherwise… please speak to a professional in legal.

    • HighAndDry on 14/12/2018 - 11:51

      People who wish for the market to crash is ignorant

      Could've left it there. Economic crashes help no one.

    • dcep on 14/12/2018 - 16:29
      +3

      I won't call it "stable or slowly growing market" for the last 2 decades.

      Houses have been quadrupled or more since then.

      It's a bubble. And a bubble that will pop eventually.

      • Blue Cat on 14/12/2018 - 18:18

        It's a bubble. And a bubble that will pop eventually.

        They said the same 10 years ago!

        • dcep on 14/12/2018 - 22:15
          +1

          so did 90s in ireland

  • rothsa on 13/12/2018 - 09:51
    +2

    Some have suggested on-selling. To do so, you need to have your transfer stamped, then to on-sell to a new purchaser. You'd incur stamp duty of $21,470.00 according to the SRO Vic website (based on dutiable value of $440,000 and the land not being a principal place of residence). The on-sale price would be for the lower amount of the value of the land (possibly more than $44K less than you paid). Your loss in this case would be greater than just forfeiting your deposit.

    Others have suggested that it is wrong to talk about just losing your deposit. Unfortunately, this is true. Whilst one person at least suggested you might be up for the contract price of $440,000, this is wrong. However, being in breach by not being able to complete, you may be up for the full loss to the developer when it sells it to another purchaser. I would suggest, if you are unable to complete and realise that your deposit will be lost, discuss an option with the conveyancer (or solicitor if you have your file transferred) of entering a mutual deed of rescission with the vendor. You can nominate what happens (which is whatever the vendor agrees to). They may not want to consider the hassle of suing for any greater losses (especially if they are unaware of what assets you have) and will likely be enticed to agree to a forfeiture of your full deposit in exchange for a mutual rescission of the purchase contract. This gives both you and them certainty (and you may be able to avoid having to pay stamp duty).

    Finally, you'd want to look into the clause in the contract defining the completion date. For off the plan purchases, the time for completion is defined as starting from some event occurring. You may have more time than you think, depending on what stage development is at.

    In terms of their reference to completion being in June 2019…Was this mentioned to you by the vendor? By the real estate agent? By your conveyancer? Is it in the contract at all? You may have additional rights under the ACL for misleading and deceptive conduct if you were enticed to enter the contract based on this representation, and depending on circumstances, the developer may agree to be more lenient with you.

    I suggest keep looking for a job, and wait to hear further regarding completion. If the completion event triggers, and the clock is truly ticking, and you don't yet have a job or have no prospects of obtaining a loan, you can try to negotiate a deed of rescission.

    • UFO on 13/12/2018 - 11:43
      +1

      This!!!!! ^^^^

      Except I'd go for a Deed of Rescission NOW!
      The longer you wait, the more the market falls.
      Talking to the vendor/developer now and agreeing to walk away by forfeiting the deposit without further cost is your best option.

      You're considering to go ahead with a purchase that will very likely cost you even more in losses. Cut your losses if you can and move on.
      What's done is done- but you don't want to be up for vendor's costs as well. Get onto it now… don't wait till the last minute, especially in a falling market.

  • harley on 13/12/2018 - 09:53

    Try JusticeConnect. If you qualify, they can help you with pro bono legal assistance to maybe read through your contract and provide advice: https://justiceconnect.org.au/help/

  • reddead2067 on 13/12/2018 - 10:25

    Here are some links to No-Doc loans. You can borrow up to 80% with no documentation.

    https://www.ratecity.com.au/home-loans/no-doc-home-loans

    https://www.homeloanexperts.com.au/low-doc-loans/no-doc-loan…

    • LurvinOZB on 13/12/2018 - 11:21

      If u dont have income, you cant service debt. Is there any legit lender that would lend if borrower dont have a job/ income?

      Perhaps OP can arrange a meeting with the developer in person, present current scenario and ask if you can have a joint ownership (get someone like your family member to purchase with you provided they are also earning enough to meet debt servicing etc), or negotiate for a prolong settlement and the avenue to on-sell to another buyer (find another buyer and sell at a loss of say 50%) or if they are willing to neg for the contract to be void but forgoing 50% of the deposit due to your unfortunate circumstances?

      Get qualified advice in any case. These are my views.

  • Herbse on 13/12/2018 - 10:35
    +2

    $440K for 450sq in Lyndhurst..
    5 minutes down the road in Clyde, 650sq plots selling for $280K

    WTF

    • Jugganautx on 14/12/2018 - 06:56
      -3

      stoopid is as stoopid does

    • ihbh on 15/12/2018 - 14:14

      Link?

  • Dr Prepper on 13/12/2018 - 10:43

    Conveyancing makes up 80% of negligence claims against solicitors. Many claims for negligence in conveyancing actually come about when purchasers lose their 10% deposit. Purchasers will often take their file to an independent solicitor to see if the conveyancer stuffed something or failed to advise you about something significant. Conveyancers usually cut corners so sometimes the independent solicitor may be able to pluck some seemingly minor mistake to make a claim against the conveyancer's insurance. There are cases of people in your position who lost their deposit when finance fell through taking their conveyancer to Court for failing to advise about an easement even when they could not give a stuff about the easement.

    • HighAndDry on 14/12/2018 - 11:53

      Conveyancers usually cut corners

      Not to bag out conveyancers too much (because it's not an individual problem but a problem with the very nature of the industry), they only exist because in 99% of these matters you can cut all the corners and nothing bad will eventuate if it proceeds along the standard process. Of course, in that case you could do it yourself blindfolded with one hand tied behind your back.

    • ihbh on 15/12/2018 - 14:17
      +1

      So people want to pay conveyancer rates for solicitor services?

  • Cheapsize on 13/12/2018 - 11:19

    Depending on your situation you should get ANY job and aim to settle. I would obviously seek advice from a mortgage broker though best of luck, stay strong, you can do it!

    • LurvinOZB on 13/12/2018 - 11:27

      ANY job is abit of a stretch. Current financial situation, serviceability, valuation etc determine loan outcome. If OP works as an engineer his/ her whole life and lands a job as a retail store assistant or manager, using that first month payslip isn't going to provide much joy to the lender.

      Same industry, similar work scope = maybe. Different/ ANY job = minimum payslips stipulated by lender.

      In any case, I hope OP gets back some money.

      ~edit: the above solely my personal views :-)

      • Cheapsize on 13/12/2018 - 12:08
        -2

        Going to clarify: ANY job may satisfy minimum lending criteria depending on the loan, buying OP time. Obviously it depends on OP situation agreed. However I really feel strongly Mortgage broker would be first point of contact. Maybe a lawyer to look at the contract of sale as suggested by others. Also potentially withdrawing from Superannuation possibly on compassionate grounds, could be a viable option?

        • LurvinOZB on 13/12/2018 - 12:17

          Title = Jan. Today's date 13th Dec. <— Time pressed.

          "ANY job may satisfy minimum lending criteria …" <— Which lender's minimum lending criteria are you referring to? Am genuinely curious since you sound pretty convicted on that view that ANY job would suffice.

          • Cheapsize on 13/12/2018 - 13:02
            -2

            @LurvinOZB: I'm assuming they have been pre approved and they need to service the loan. Not actually obtaining a loan in the first place. The main point of obtaining said ANY income is for an extension or negotiation with the provider.

            • LurvinOZB on 13/12/2018 - 13:33

              @Cheapsize: OP mentioned he/ she was of a view that title would be issued June 2019 so even if OP was previously pre-approved (based on your assumption), OP will still need to be reassessed again by the lender < three months before settlement.

              Negotiating with the "provider" <— I assume "provider" means lender? If so, not sure what you meant by "extension". As for negotiation, probably not going to happen. Unless salary, position, industry is equal or better with not much change to financial circumstances (if based on your assumption that OP is pre-approved), then there is a chance. Otherwise, even if OP walked into ANY job, nothing much to negotiate. Lender is not obligated to take risk, they are there to earn profits for shareholders.

              From the sound of it, I assume you have not gone through a loan process before on a property? You sound optimistic, I hope you stay that way. Just a suggestion when its your turn to buy a property, be realistic on expectations =)

              ~ above are solely my personal views =)

              • Cheapsize on 13/12/2018 - 13:43
                -3

                @LurvinOZB: I own a property, I used a mortgage broker. My family friend who has 13 properties and investments also advised me. I have gone through multiple loans with family. My experience is obviously different to your experience. That's life hey.

                • LurvinOZB on 13/12/2018 - 13:54
                  -2

                  @Cheapsize: "I own a property" <—- Ahh congrats on being a property owner at such exciting times.

                  "I used a mortgage broker" <—- Perhaps you can share the contact here.

                  "I have gone through multiple loans with family" <—- Cool! No wonder you sound seasoned. Please share which lender you take your loans from?

                  I'm hoping you can answer my previous question ""ANY job may satisfy minimum lending criteria …" <— Which lender's minimum lending criteria are you referring to?" <—- Like I said, I am genuinely curious.

                  "My family friend who has 13 properties and investments" <—- #metooo I have many friends who owned many many properties (both resi and commercial, and as OO and investors), but on the contrast, their advice means nothing since I would always seek qualified advice. But hey like you said, thats life =)

                  • Cheapsize on 13/12/2018 - 14:08

                    @LurvinOZB: I use endeavour mortgage company my broker's name is Craig they are now called secure invest as of last month or so. Apparently they have grown substantially, for reference : https://sifs.com.au

                    I do not feel any job will satisfy lending criteria, simply refering to after the pre approval, things may go wrong. Any income is better than no income. Seek advice, mortgage broker can save you alot of headache's.

                    My family friend is also a qualified real estate agent. Owning 13 properties. Commercial and Residential.

                    • LurvinOZB on 13/12/2018 - 18:38
                      +1

                      @Cheapsize: "I do not feel any job will satisfy lending criteria" <—- I'm confused with the position you are taking. I was waiting for your said lending criteria to see which lender would consider ANY job but nevermind, three replies and I'm still getting none.

                      13 properties or 100, an RE is in no position to dish out financial advice. I wouldn't contemplate taking financial advice from an RE with regards to loans.

                      "Any income is better than no income" <—- Nope, doesn't work this way. Call up any lender and spend 5 minutes talking to their lending specialist. Its not difficult. Get the answer straight from the experts. There is a reason why people want to buy their first property, has income or "ANY" income stream, and yet still couldn't get their first property. And no, having ANY income does not entitle you to "negotiation with the provider" as mentioned by you earlier. It doesnt matter whether its a broker or its the lending consultant at the shopping centre of a bank's branch, its either you meet the lending criteria or you dont. Its not like a >$20m deal that can use special consideration, its $400k and there is nothing really to negotiate.

                      The concluded royal commission has one distinct common denomination that lenders acknowledged and has always tried to avoid at all costs. That is borrowers without the capacity to repay. That's what lands the lenders into the dog's den. If one doesnt meet lending criteria, no game. Hence I was genuinely curious at the lending criteria that you spoke of (based on your own experience you mentioned) which implies liberal lending criteria on "ANY" jobs and/ or income.

                      I agree on one thing though; speak to a broker, or direct with the developer, or a solicitor, or speak to someone qualified, or speak directly to a lender. Definitely would not recommend some RE who has X number of properties, or some non-existent lending criteria from the mysterious lender. Thats what OP should do.

                      Enjoy the bargains buddy, I did enjoy our conversation =)

  • UFO on 13/12/2018 - 11:35
    +6

    OP, firstly I'm sorry to hear what you're going through.

    Look at it this way. The market has fallen. Whether you ended up going ahead with the purchase or not, you've lost money either way (and going by the stats the difference wouldn't be much at all).

    That unfortunately, happens every day to a lot of people. It doesn't make it an easier pill to swallow I know, but I'm trying to make a point here (very badly I know).

    What I'm trying to say is… it's not the end of the world. I've made some bad financial decisions in the past, at losses a hell of lot more than $44k!
    And it sucks and it feels like you've been punched in the guts, but you know what? There's much worse out there.

    Ok, you've lost your deposit and have to start again. But least you're at zero! Others go well below that and have to either declare bankruptcy or pay off a loan for years… JUST TO GET BACK TO ZERO! You aren't there, which is good!

    Everything will be ok. You'll start afresh in a new job, and you'll start saving again when things settle down for you.

    I can't tell you how much I understand EXACTLY how you feel at the moment, but this too shall pass. Chin up mate. Walk away and start again.

    • ojm on 13/12/2018 - 22:11
      +1

      He can be at less than 0 if the land has dropped in value and the developer chases for the difference.

      • HighAndDry on 14/12/2018 - 11:55

        Yup. So many people seem not to understand that OP's loss isn't limited to the 10% deposit: the developer can (and some will) sue OP for their loss on reselling the property.

  • 2ndeffort on 13/12/2018 - 11:35
    +1

    Im not a lawyer but I would think with the property market being the way it is you may not be the only person in this situation regarding deposits. Potentially the developer might have a few people reconsidering purchases they made 6 months ago. If too many people pull out their deposits wont touch the shortfall a developer would have in their project finance, particularly if their finance model was based upon selling into a rising rather than falling market. I would get legal advice and speak to the developer, they may prefer to give you an extension rather than see you join the legion of folks defaulting and/or walking away. Somewhere out there is probably somebody that paid a deposit and has the finance ready to go but is looking to pull out because they realise they are probably heading towards negative equity if they close on last years prices.

  • h4zey on 13/12/2018 - 11:59

    Sh*t man, i can't offer anything expect sympathy for you. Hopefully you got this figure out and i believe you got some best advice up there^

  • Plug on 13/12/2018 - 13:12

    OP, presumably you were advised of the initial settlement date in writing. Were you similarly informed the date had been brought forward and did you agree to it in writing? Just wondering if you may be able to use the change of date to some advantage.

    • jno on 13/12/2018 - 13:51
      +1

      Lol what

      • Zachary on 13/12/2018 - 20:41
        -6

        Simple - save up the full amount, purchase land, some months later "Oh no I lost my job! Well at least I have my own land that's fully paid so I don't have to worry about getting a loan or another job to help pay the rest off."

        OR

        Attempt to save up for full amount, DON'T purchase land yet, some months later "Oh no I lost my job! Well at least I don't have to worry about being in debt or out of money, because I didn't choose to buy that expensive ass land that requires a deposit of 44k if I don't have enough to buy the whole thing….

        • brendanm on 14/12/2018 - 14:32
          +1

          Silly op, it's all so easy really. Took him 3 years to save $44k, so that means 30 years to save $440k. Then his piece of land is priced at $1.2 million, so he then has to save for only another 60-70 years before he can buy it in cash. Except then the land is worth $1.8 million etc etc etc.

          • Zachary on 17/12/2018 - 23:43

            @brendanm: Well then don't buy it if you just can't afford it without getting a loan….that's what I would do anyways…….

            • brendanm on 18/12/2018 - 07:43

              @Zachary: That's just stupid. The vast majority of people buy house/land with a loan, not many people can afford hundreds of thousands of dollars outright. The capital gains historically far outweigh interest payed in Australia, and at the same time you get to live in your own house, and own it after 20 years or so. Buy by all means, keep paying rent and paying off someone else's house…

              • Zachary on 19/12/2018 - 05:35

                @brendanm: Uh well it's not stupid if it means you won't be in debt for a good while on the off chance you can't repay the lot back within reasonable time….

                keep paying rent and paying off someone else's house…

                Better than be in 500k debt or more for a loan…..I'd rather keep my balance positive(or net, net works too…..) thanks….not negative….but if it's anything like that HECS loan thing, sure you can be in the biggest debt ever but as long as you're not making 45k or more a year after tax, you don't have to pay back that loan…..hell, even just skip the country as soon as you get your piece of paper……hahahaha, knew some guy who did that…..once you're out, no more debt……dunno if you would have to repay if you come back to work here though or maybe if your slate is wiped cleaned….?

    • brendanm on 13/12/2018 - 18:04
      +6

      I don't have enough downvotes for this comment.

      • Zachary on 13/12/2018 - 20:37
        -2

        Can have some of mine if you want……

    • witsa on 14/12/2018 - 08:26
      +1

      Yeah I too would like to know why OP didn't simply save up another 400k to buy the land.

      In fact mortgage are obviously for suckers. Everyone should just save up and pay for a house outright.

  • dealsucker on 13/12/2018 - 14:03
    +5

    To be honest reckless buying just like this is what pushes property prices up and the only people making money off are the real estate agents, developers and the banks. I do not have an advice to offer but I hope you are able to find a job soon. Based on the advice given by others, although 44k is a huge amount, loosing it and moving on in the long terms may not be that bad afterall. All the best mate.

  • Typical16-bitEnjoyer on 13/12/2018 - 14:40

    OP I hope you read this.

    See a lawyer.

    The developer will have a very hard time enforcing the "no nomination" clause. The clause in itself has very little weight. Even if the developer was to 'reject' your nomination your lawyer has a good chance of getting it through.

    Please see a lawyer practicing specifically in property law. If you need assistance, call the LIV and they can point you in the direction of a specialist.

    TINLA.

  • Powershopz on 13/12/2018 - 14:56

    As a few others have stated - go see a property lawyer. They will probably charge you $1000-$2500 however may be able to recover some of your deposit if there are any other loopholes in the contract and or reduce your liability for any further fees and charges.

  • Larkdord on 13/12/2018 - 15:51

    Option 1: Try speaking to the developer about buying more time based on your job situation
    Option 2: Seek legal advice in regards to the above, if Option 1 doesn't work out
    Option 3: Speak to a Real estate agent if they could potentially find a buyer who is willing to purchase at the same price you bought (not all markets have gone down)

    I hope something works out OP.

    • HighAndDry on 14/12/2018 - 11:58

      Pretty much spot on - only thing I'd change is that given the timeframes, OP needs to be doing all three things at once. They may well run out of time if they approach this one option at a time.

  • [Deactivated] on 13/12/2018 - 17:14
    +1

    Zero dollars is better than negative equity debt with interest.

  • [Deactivated] on 13/12/2018 - 19:49

    Seems you are in dire straights, and desperate need of help.
    Maybe you have family or friends that could help you out. Maybe have parents or siblings borrow money in their name, or act as guarantor or something.
    Not ideal, and you probably don't want to ask, but desperate times might call for desperate measures.
    Maybe get another job ASAP (even it is not the best job) just to secure loan.

    • ihbh on 15/12/2018 - 14:29

      Maybe have parents or siblings borrow money in their name, or act as guarantor or something.

      Bad idea to ask for this in a falling market (and drag your family into losses), and one that's not just a short term correction, but could drag on for a while and fall further. Best to cut your losses now.

      • [Deactivated] on 15/12/2018 - 14:45

        Bad idea to ask for this in a falling market (and drag your family int losses).

        Oh, I didn't market is falling in OP' area.
        I guess I was thinking optimistically ie. OP regaining employment and paying it all of themselves (even refinancing further down th track to remove guarantor and only have OP name on mortgage). Hard to know whether this is likely, not knowing their qualifications and employment history etc.
        If it was me, I would pay back family or friends that helped me out no matter what (regardless if value of property goes down, which doesn't matter so much if your planning on living there long term without selling).

  • dufflover on 13/12/2018 - 20:28

    How come a lot of the comments here talk about the property value and negative equity? The earlier comment comes to mind about the on-selling - the market is somewhat irrelevant surely? Doesn't matter if it's 340k, 440k, or now worth 540k - you can't settle and buy a place if you don't have the money, which most people get from a home loan which OP can no longer get.

    Everyone has already said all the good tips. My worthless 2c would be to focus on the settlement time part when you get that legal consultation; regardless if you're buying a place or not you need a job anyway!

  • Tinahz on 13/12/2018 - 21:37
    +9

    I have been reading all the comments throughout the day to see what is most relevant to my situation and if i can use some of the advice. I thank you all again who have contributed to this. It has given some leads as to what I should focus on.

    I am going to talk to the developer directly to explain my situation and request for some options

    I will try and get in touch with a solicitor to see if there are any options of me able to delay settlement without any penalty.

    Obv I am in touch with recruiters to find a job asap.

    I will keep you guys posted of what happens during the course incase if any of you are interested how it will end. I am feeling really depressed and not too sure how this new land which was supposed to be the dream house turned out to be a nightmare in 6 months.

    • [Deactivated] on 13/12/2018 - 21:58
      +3

      I wish you the best of luck and hope it turns out well.

      It's natural to be depressed - I've been there, lost $80k during the GFC - but in the end it's just money. After the initial anger, then depression, eventually it becomes a faded memory. Now 10 years later it's not something I even think about, let alone worry about.

    • matt-ozb on 13/12/2018 - 22:36
      +1

      good luck .. nice reply in the sea of forum responses

      suggest you talk to a lawyer before you talk to the developer

    • lostn on 13/12/2018 - 23:34

      I am feeling really depressed and not too sure how this new land which was supposed to be the dream house turned out to be a nightmare in 6 months.

      I was wondering what you were planning to do with the land? Just hold onto it and hope it appreciates? Or build something on it? If the latter, how were you going to finance that?

    • oO0Dam0Oo on 14/12/2018 - 10:57
      +1

      Don't be too hard on yourself things will get better.

      I lost around 80k (OC special levies) on an apartment a few years back. Bought off the plan whole building began leaking after just over 12 months with developers and builders closing shop.

      Taken my family a while to get back on track but we did.

      Chin up mate and go through the motions to seek best resolution.

  • lostn on 13/12/2018 - 23:32

    Curious why you took so long to settle if you paid the deposit in May?

    • canyoudoitcheaper on 14/12/2018 - 00:17

      Off the plan, probably

    • brendanm on 14/12/2018 - 14:34

      Off the plan, land isn't even titled.

  • whoopdeedoo on 13/12/2018 - 23:44

    get a job with a family or friends business.
    cba and nab can do new employment :)

    • lostn on 14/12/2018 - 00:27
      -1

      If you know someone who earns good income, you can have that person be your employer. My brother who is a doctor helped two other people get loans who had no official job (cash in hand jobs), and they successfully got bank loans. He pretended to employ them as secretaries or receptionists.

      That person of course needs to look legit, (ABN, payslips, and the usual stuff).

      But there is the question of how will you make the repayments without a real job? There's going to be a lot of pressure to find one fast.

      • whoopdeedoo on 14/12/2018 - 00:46

        lol i wasn't implying to get a pretend job. thats illegal!

        • lostn on 14/12/2018 - 01:16
          -1

          Desperate times call for..

      • Jugganautx on 14/12/2018 - 07:00
        +2

        let me guess they were indian/asians.

        • Xiaomi on 14/12/2018 - 07:48

          Hahaha 100% they were

        • Ash SA on 14/12/2018 - 08:05

          Lol..bit racist but spot on

        • lostn on 14/12/2018 - 09:01

          One of them was. Don't know about the other.

      • dealsucker on 14/12/2018 - 08:56
        +3

        I am pretty sure he did not do it from the goodness of his heart but for some gain in return. This is the precise example of a bad apple in a society. Helping the crooks working on cash, paying zero tax and I assume also taking centerlink benefits, basically ripping tax payers left right and center. To be honest, if I knew who your brother was I would straightaway report him to authorities. He doesn't deserve to practice medicine either because the profession calls for a certain level of integrity and it seems he does not have any.

        • Sequenox on 14/12/2018 - 10:29

          Relax. Perhaps his brother was just a sucker for a good deal ;)

  • engen Arsch on 14/12/2018 - 11:06

    You can get free legal advice from the REIV (Real Estate Institute of Victoria) talk to the developer to see if they would consider a nominee or extension to settlement

  • allegiance86 on 14/12/2018 - 15:22
    +2

    Not sure if this has been mentioned but could you be an Uber driver until you find a new job?

  • kaleidoscope on 14/12/2018 - 16:17

    Very sorry to hear about your troubles. This almost happened to me as well so I understand the situation ur in. Best advice I can give is to come to an arrangement with the land developer. You may need to pay them some panelties though (still better than loosing $44k).

    Good luck with job hunt.

  • Just me on 14/12/2018 - 19:55
    -1

    Just declare bankruptcy. Get a job and save for 5yrs, by then your credit rating is back and you'll get that block for $350,000 according to the outlook.

  • ely on 14/12/2018 - 20:11

    Sounds difficult. I work with some mortgage brokers if you'd like to be put in touch with some, Melbourne based. Not sure what they can offer, but if any lenders will help out they'll know who. PM for details if that would be helpful to you.

  • crabbypaddy on 14/12/2018 - 22:16
    +1

    Second the comments on trying free legal advice such as Justice Connect and Legal Aid

    Also try your best to attend to attend a Community Legal Center - they provide free legal advice for disadvantaged people such as yourself, even if it's just to get a second opinion or even if you only get a referral. Act quick because some may close during Christmas/New-Year.

    Springvale Monash Legal Service does drop-in (first come, first serve) sessions Monday to Thursday - come at 6pm, as whilst clients are seen at 7pm, it usually gets full by then and it's not fun turning people away. There is a chance at ongoing service although I can't remember whether civil debt matters count.

    For the chance at ongoing service, try to book an appointment at Monash-Oakleigh Legal Service. They have drop-in sessions on Wednesday (not sure about what time they are though, have a look online).

    If you live near Lyndhurst try Peninsula Community Legal Center but not sure how they work.

    Good luck

  • futurepizza on 15/12/2018 - 00:13

    Ask this question on Propertychat.com.au

  • CalmLemons on 15/12/2018 - 01:44

    OP should consult a proper lawyer first - often solicitors just want to push paper work and don't think beyond the square.

    Not to offer legal advice but if I was in the same position I would do two things (which are mostly free, first):

    Talk to the original sales rep/developer, be as honest and sincere as possible and see if they will allow the nomination clause…most people want to make things work and if you can make it easy for them they would rather just get their full money than trying to chase you down via messy processes. Prepare a plan, then approach them with an offer.

    If the above does not work and you have tried 400% to try to be a persuasive as possible, then seek good legal advice from a lawyer, not a conveyancer or whatnot.

    Do not declare bankruptcy there is no need or no point.

  • CalmLemons on 15/12/2018 - 01:55
    +1

    On a separate note, not relevant to op the lending restrictions are now making it harder for the same people who complained that they couldn't buy a house before as they were giving out loans to anyone even harder. These are the same people buying sub $1m houses in the outer suburbs who didn't count on their rallying + bank inquest + curb on foreign property investment to cause such tightening on lending restrictions. Quadruple whammy.

    You cannot protect all the lambs from the wolves.

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