In October of last year my fiancee and I embarked impetuously, with gusto in getting into the property market. We finally bought an off the plan unit in a 130 low rise unit development. The name is a very well known one, usually for the wrong reasons, I don't wish to mention that name (i'm not even sure if this forum allows me to anyway) until we have our facts straight about where we are at now. Please read on..
At the time we were led to believe that we were buying the property at a discount (minimum of 5%). I had started a sideline business venture in July of last year which I had assumed, foolishly, would cover the closing costs of the unit - some $52k. That business venture failed. We are now in the position where to settle on the property would prove to be very difficult. We would like to sell the property before settlement in February of 2003.
We were given a forecast of where the property would be financially from the outset until 5, 10 years down the track. A recent independent analysis has indicated that the unit would be worth $10-20,000 less than what we paid for it over a year ago. Also the plans had been changed from what we originally led to believe. It appears that we have been misled (as well as being somewhat gullable).... This week we will have the property assessed by a realtor, have the contract anaylsed by an independent property lawyer, afterwhich we will have a clearer picture of our situation. Thank you for reading up until this point....
Our questions? Is anyone able to shed some more light on which way we should go now?? Has anyone had any experience in rescinding a contract? If we do need to settle on the property, where could we source a loan of $52k to cover the closing costs?
We have already confirmed a vendor financing package interest only mortgage loan at 5.9% fixed for 3 years. Is there any other exit strategy that anyone can propose? We are looking into living in the property ourselves as our last resort which will impact our lives dramatically. The worst case scenario for us is the amount of massive debt that we could go into...
We are committed to building a property portfolio and realise that the mistakes that we've made are part of our learning process. We would like to minimise our exposure or loss, infact we're committed to turning this situation around to our favour - but we currently don't know how...
Even if you cannot respond or don't have any answers we would like to thank you for reading our request..
At the time we were led to believe that we were buying the property at a discount (minimum of 5%). I had started a sideline business venture in July of last year which I had assumed, foolishly, would cover the closing costs of the unit - some $52k. That business venture failed. We are now in the position where to settle on the property would prove to be very difficult. We would like to sell the property before settlement in February of 2003.
We were given a forecast of where the property would be financially from the outset until 5, 10 years down the track. A recent independent analysis has indicated that the unit would be worth $10-20,000 less than what we paid for it over a year ago. Also the plans had been changed from what we originally led to believe. It appears that we have been misled (as well as being somewhat gullable).... This week we will have the property assessed by a realtor, have the contract anaylsed by an independent property lawyer, afterwhich we will have a clearer picture of our situation. Thank you for reading up until this point....
Our questions? Is anyone able to shed some more light on which way we should go now?? Has anyone had any experience in rescinding a contract? If we do need to settle on the property, where could we source a loan of $52k to cover the closing costs?
We have already confirmed a vendor financing package interest only mortgage loan at 5.9% fixed for 3 years. Is there any other exit strategy that anyone can propose? We are looking into living in the property ourselves as our last resort which will impact our lives dramatically. The worst case scenario for us is the amount of massive debt that we could go into...
We are committed to building a property portfolio and realise that the mistakes that we've made are part of our learning process. We would like to minimise our exposure or loss, infact we're committed to turning this situation around to our favour - but we currently don't know how...
Even if you cannot respond or don't have any answers we would like to thank you for reading our request..