Hi guys,
Over two years ago I naively signed a contract as an over-excited 21 year old for an off the plan property purchase of 1 of 44 townhouses in Emerald Qld. With zero vacancy rates and a rental appraisal of $750 a week it was the perfect investment. Until I learned about developers cycles and their increased activity during price growth periods, causing market hysteria which will inevitably lead to an oversupply when the boom ends.
The point is I put down $30k deposit which was held in a solicitors trust account. This was 2 years and 2 months ago, and the completion is not even on the horizon, as the developer still can't even get finance for the project.
An Annexure of the contract states that "when the contract has been signed for 24 months and the registrar of titles has not registered the community titles scheme the buyer is entitled to refund of the deposit."
Under the grounds of this clause I instructed my solicitor to terminate the contract so I can take back my $30k.
On reply to this particular proposal was, "sorry, we've spent the money on project costs."
You can imagine how happy this has made me feel, and assume a result I have turned to this forum to ask two questions.
1. Can anybody offer any advice on this or has been involved in this situation?
2. With a strategy of buy and hold for long term CG, I need to break into the market, would like to buy in Brisbane as I think there will be some imminent price growth with better population/employment growth then back home in Adelaide.
It would be nice to get the money back, but I now have to face the reality that I may not see it again, and just put it down to my first real life learning experience.
I would appreciate any advice on offer, thanks in advance.
Over two years ago I naively signed a contract as an over-excited 21 year old for an off the plan property purchase of 1 of 44 townhouses in Emerald Qld. With zero vacancy rates and a rental appraisal of $750 a week it was the perfect investment. Until I learned about developers cycles and their increased activity during price growth periods, causing market hysteria which will inevitably lead to an oversupply when the boom ends.
The point is I put down $30k deposit which was held in a solicitors trust account. This was 2 years and 2 months ago, and the completion is not even on the horizon, as the developer still can't even get finance for the project.
An Annexure of the contract states that "when the contract has been signed for 24 months and the registrar of titles has not registered the community titles scheme the buyer is entitled to refund of the deposit."
Under the grounds of this clause I instructed my solicitor to terminate the contract so I can take back my $30k.
On reply to this particular proposal was, "sorry, we've spent the money on project costs."
You can imagine how happy this has made me feel, and assume a result I have turned to this forum to ask two questions.
1. Can anybody offer any advice on this or has been involved in this situation?
2. With a strategy of buy and hold for long term CG, I need to break into the market, would like to buy in Brisbane as I think there will be some imminent price growth with better population/employment growth then back home in Adelaide.
It would be nice to get the money back, but I now have to face the reality that I may not see it again, and just put it down to my first real life learning experience.
I would appreciate any advice on offer, thanks in advance.