Backing Out of Off the Plan Purchase

magikz on 05/11/2016 - 10:26
Last edited 05/11/2016 - 10:28

Hi everyone,

This is a cause of a bit of anxiety for me so I'm hoping to get some advice from people here. Just over a year ago, my dad offered to help put in 3/4 of a 10% deposit for an off the plan apartment. The apartment is a single bedder in Wolli creek. I was naive and didn't know much of anything about housing prices at the time. I was grateful for my dad's help, and buying property as an investment/living space seemed like the thing to do. I was also interested in the first home owners bonus and reduced stamp duty.

However I'm having a lot of second thoughts. Mainly due to the impending high mortgage and my need for space. The property is due to be finished by end of 2017. I have heard that I can walk away if their construction time exceeds the sunset date. However do I have any recourse for backing out of the contract?

Home & Garden

Comments

  • mskeggs on 05/11/2016 - 10:31
    +2

    Do you mean, with the result you get your deposit back?

    • magikz on 05/11/2016 - 11:25

      Yea I do not want to lose my deposit. Would waiting out the sunset date be my only option? Of course I can also resell at a later date I just want to weigh up my current options.

  • [Deactivated] on 05/11/2016 - 10:44

    you lose your deposit

    • magikz on 05/11/2016 - 11:26

      Thanks, I just wanted to see if there were other options. I asked my solicitor and they said the same thing.

  • bion83 on 05/11/2016 - 11:40
    +1

    Housing Bubble here we go

    • magikz on 05/11/2016 - 11:44

      Touch wood.

  • brotherfranciz on 05/11/2016 - 12:08
    +1

    Read the contract.

    Try not to overthink things.

    I'm in VIC so I don't know much about the Sydney property market, but Wolli Creek is in quite a central location?! Near a train station, plenty of parks and reserves, near Princes Highway, Ikea just down the road lol… just my opinion but seems like a good spot for an apartment. :)

    • magikz on 05/11/2016 - 12:57

      I appreciate the positivity :)

    • mskeggs on 05/11/2016 - 13:02
      +2

      cough massive future slums cough

      Sorry, being a bit unfair. The area has been substantially overdeveloped and there will be a problem if property prices do fall, as investors will be in trouble.
      The area needs 10 years of good times to allow the cafe, recreation etc amenities to develop properly and the risk is a lack of cash will leave these absent.

      If I was in the op position assuming the build is going ahead, I would probably cross my fingers and sell afterwards.

      • magikz on 05/11/2016 - 21:36

        10 years is too long for me to wait. I've got my own ambitions at the moment, and being tied to a mortgage in a shoebox style apartment isn't what I had in mind. Ideally I'd be able to sell, make a small profit, and buy somewhere else now that I've learnt more about property.

  • niner on 05/11/2016 - 13:44
    +1

    Any reason why you chose that location? It's possibly the worst place in Sydney to live. So much noise pollution and traffic.

    • mskeggs on 05/11/2016 - 13:48
      +2

      I think you mean close to transport.

    • magikz on 05/11/2016 - 21:34

      Personally it was really just naivety. It's close to my current workplace, close to the city, close to the airport, there are nice parks and cycleways nearby. However I think my dad really just wants me to live closer to him, which is why he fronted a large part of the deposit. My parents split early. Whilst I do appreciate it, I feel like I'm going to be put under quite a lot of pressure.

Login or Join to leave a comment
Login Join