I booked a property in 2022. At that time we were both working so all was OK. Now wife is not working and we have an upcoming settlement in Oct 2024. It is land and housing package.
I would be able to pay for the land portion at that time. What are my options if I don't want to lose my deposit? TIA
You're a (profanity) idiot
it is the devs problem if the op has a get out clause re finance
I think it's nearly time to extinguish HeWho(Doesn't)Know's torch and yeet them off this island.
He gets the Most Ironic Username Possible award as a consolation prize though, so he's not going away empty handed
You have not once written an intelligent comment
Amazing that you're so certain in having the incorrect answer.
U can find someone else to takeover the contract assuming you got a good deal in 2022 there should be plenty of people willing.
This would be my preferred way. I am not sure if the builder will allow if it but I will meet them this weekend and update this thread.
I am not sure if the builder will allow if it but I will meet them this weekend
After you have spoken with your mortgage broker and conveyancer right… right?
Mortage Broker yes. Conveyancer no at this stage.
@bargainhuntingcouple: I would want to know everything about the contract/s you have agreed… Otherwise the builder is likely to profit off you failing the contract (damages), and that property prices are likely higher than what you agreed to 2 years ago profit off selling into the market.
@CheapandUsed: Prices have not increased much. In fact when we booked it. the interest rates were quite low. Now they have gone up by almost 5 times. I will see if I can recover my deposit or maybe make a small profit.
@bargainhuntingcouple: Please clarify…
"I booked a property in 2022"
You either bought the land and home package or you didn't
Did you sign a contract of sale and a contract to build?
If not what did you sign?
@bargainhuntingcouple: Mortgage broker can only advise about financing and not about what the contract allows you to do or not (nominate someone else, extend the settlement date, etc.). Speak to a conveyancer / solicitor for that before talking to the builder so that you know what's possible and are not taken for a ride by the builder trying any arm twisting tactics.
What does your contract say?
Have you spoken with your solicitor/Conveyancer?
Do you have a nomination clause in the COS?
This happened to us a few years ago, we had put down a deposit for some land to build an investment property but close to the land settling- we decided we could not go through with it as we wanted to do a KDR for ourselves due to expanding family.
The developer strictly said we could only transfer the land to a family member and were being quite strict about it.
However, the builder we were planning on using to build that house, said they had a few clients who would love to buy that land off us as it was a good plot and we got it much cheaper when we locked it in. The builder gave us one of their details and they said they would take it from us right away if possible.
Developer was not happy about this and firmly said we can only transfer to family. Finally, after much back and forth they allowed us to transfer the land to the people we were talking to. They got their dream land and built their home, and we got our deposit back!
Glad that worked out. Why would they possibly care if the 2nd person is family or not?
I dont understand why Devs would care??
Because the developer wants that person to come to them and buy another unsold block of land, not take over an existing contract.
Because they want to re-sell it for the higher market price and potentially keep the original purchaser's deposit in the process as well.
Still got 3 months for the Wife to find a job.
She is in medical leave.
Is she still employed ? Medical leave doesn't mean you cant use your current income still as the calculation for borrowing power.
Do the numbers, what do you think the property is worth vs what you paid as a deposit vs lost income from rental.
It might just be cheaper to let it go. Otherwise your best best is to sell your current property, losing 1 mortgage then gaining another 1.
Have you asked the bank to see if you can get a mortgage?
I have asked my Loan broker who has advised my current salary just can cover only the land settlement and not the building on it.
I see…
oh dear
What does your contract say?
Have you spoken with your solicitor/Conveyancer?
In the contract, does it say how long you have until you need to start building on the land? Normally it's 2 years?
Could you settle on the land, keep it for a year and then sell it? You'll sell it for much more than you purchased it…
As it is not your main place of residence, I believe you'll need to pay CGT on though.
Your contract will give you an indication as to your options.
Losing your deposit may be a blessing and your cheapest option, unless you want to run the numbers again with it being a rental property
It would be a rental.
Is the broker/bank considering the fact that you're expecting rental income?
Vacant blocks of land dont provide any rental income
Yes. But it is considered very risky to support two mortages on a single income. BTW, if my wife rejoin work then our limit would be 910k.
Can you capitalise the interest whilst it's getting built?
And how much is the deposit???
15000
Need to change ya name
I'll buy it at 10% discount on original purchase and if you pay transfer fees. :P
I think this is less of a "cannot potentially honour" and more "will not honour". I am also concerned that you bit off more than you can chew, even with both of you working, as you seem to be in mortgage stress from day 1. If your wife is not expected to get a job that would help the mortgage, then you should work on selling or doing whatever the contract allows. Forcing her to get into work prematurely can implode your marriage. Too many things have to come into place. Seek legal advice.
When we bought it we were both working and actually paid 20% deposit . In the next year, we did pay over 50% of the total price of property and our installment did come down from 2100 to 1100 a month.
It was only when she had to fly for some medical treatments she had to go on leave. It was never in mortgage stress.
Definitely talk to a solicitor, preferably before meeting with the builder so you know where you stand and what your options are.
Probably not a good idea to meet with builder at all and best to just let the solicitor deal with the builder..
May i know which suburb ur building at? Depending on suburbs, potentially the house price had increased. Some may have modest increase which you can capitalise by breaking even. Just an idea.
Is it really a house and land package or is the land and house 2 different contract and you only need to settle on the land ?
I did a house and land, but it was different contracts / 2 separate mortgages.
My land had a clause saying it can't be re-sold but the bank didn't like that so my conveyancer got the developer to remove it.
You can just settle on the land and forget the house and sell the land later. There are a lot of nomination sales in my area - and some with "under the table" cash transactions :)
Heya! I'm looking to purchase a property. I'm.open to property around Australia as it will be for investment purposes. Would you be interested in sharing details ?
OP, with all due respect, you don't appear to have a clue and you should really seek professional advice. See a property lawyer asap. Stop talking to the "builder" immediately.
You "booked" it as in you made a reservation? Is it a dinner booking or taxi?
I paid 14000 AUD when the dates came in 2002.
If this thread isn't a warning to others not to buy off the plan if you can't pay in cash then OzBargain cannot save you.
I bought land off the plan from a large arguably reputable developer and did very well financially out of it. The few people that couldn't settle or eventually fund their build ended up reselling their land on the open market for a profit.
You'll find you can only sell to a family member and you must build in two years with a house plan approved by vendor if its two separate contracts which it should be for land and house. Contracts vary but they start with penalties and can cancel the contract. Then it gets complicated as you've already put extra funds in by the sounds of it.
These contracts are very restrictive and written to avoid speculators.
Harsh truth is you're the one breaking the agreement in reality.Either settle and sell or you'll lose your money is pretty much the only option I can see.
Yes. I know that I am breaking the contract and would face a penalty. I have put in just the funds I had do as per the contract.
What state are you in?
VIC
Dispair
I read that you put in extra funds somewhere. If you only paid whats on the contract id say they keep the funds and generally they cancel the contract and wont pursue the penalties in my experience.
Your post said that you can't settle, but later you said that you can settle on the land.
Otherwise I would have recommended contacting the developer early about your inability to settle, and provide evidence such as doctor's notes, bank refusal to lend the money, etc. Even then you're just hoping that they choose to help you out, because your contract is likely unconditional.
But since you can indeed settle, you have no grounds to ask for leniency to be let out of your contract with no penalty.
As for the builder, maybe try what I said above with them. Noting that you only have enough funds to settle the land, and provide real evidence. But again you're at the mercy of their goodwill since you've signed contracts and provided non-refundable deposits.
Source: work in the industry
I can't settle fully but I can settle the land. I did call the developer and he told me that there are 6 milestones where we have to pay. Rest I will know on Saturday.
Is this a townhouse? With a single contract across both the land and the house?
I assumed you had bought vacant land and signed a separate contract with a builder.
This is house and land package.
Vendor said that if we are not able to settle it, he himself can buy it off me. Rest depends on the milestone. If my wife can produce two salary slips then we are all set.
Make sure that the builder is paying market rate and not the original price. If not you might be better off selling it to someone else. If at all you are offloading, I will be keen to have a look.
Any update?
Is your contract subject to finance approved?