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

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,

Comments

  • Not an expert here, but are there any brokers who can do a deal with some of those credit unions or personal lenders, albeit borrowing at a higher interest rate using your most recent pay slips?

  • Saw a current listing in domain for a similar sized block in the range of 350-380k. You could bring this up with the developer too, as someone mentioned earlier market condition is definitely leverage when speaking to the developers.

    Also don't stress about 44k too much, I lost 65k when I was 25(something I had worked for very very hard) , it only taught me a few very simple but important lessons. Don't trust nobody and money lost is no reason to be unhappy. It set me back and I have not been in the same space financially but it's changed my attitude towards money completely. Try your best but brace yourself to lose the deposit. And good luck with your job search .

    • I lost $1500 to hookers in Rome

    • Saw a current listing in domain for a similar sized block in the range of 350-380k. You could bring this up with the developer too, as someone mentioned earlier market condition is definitely leverage when speaking to the developers.

      If this is the "market" price, perhaps OP is better off cutting his losses and letting the deposit go and hoping it's not worthwhile for the developer to try to sue him for any losses, versus trying to hang on to the deposit, close the sale and incur additional closing costs and suffer a much greater loss.

  • I suggest posting your dilemma at Property Chat, they have a bunch of loan experts there.

    https://www.propertychat.com.au/community/forums/property-fi...

  • -1

    Maybe you can contact Workers Union and file a complaint/report about losing your job when you're in huge debt..? You might be able to get some compensation or something at least…

    • Is that really a thing? The land purchase is not related to work and employers aren't responsible for making sure you can buy a property.

    • Why would the former employer be liable for decisions OP made outside of work?

      Does the former employer get a share of the capital gains when OP sells?

  • If anybody is getting despondent over Melbourne and Sydney real estate, come to Perth.
    An equivalent block here, say Byford, would be around $200k.

    For what OP signed, you'd get one half of an old quarter-acre block inside 10km from the CBD, or a nice 4 bedroom in the outer suburbs, but not as outer as Lyndhurst. And prices are still dropping.

    • +2

      Yeah but no Aus Open, Grand Prix, Grand Final or Coffee…

      • Better coffee than Lyndhurst. True on the rest.

  • Have you tried posting your question on Property Chat?

    https://www.propertychat.com.au/community/

    Those guys usually have helpful suggestions about buying and selling property (it doesn't matter that you are not a property investor).

    • I have and have only had one generic response unfortunately

  • You can happily leave the deposit. In the short term the land is going to be of value lot less than than it is when you bought and today. You should be able to buy at the same place or somewhere better for lot lesser. The crashing property market came to your rescue.

    • Liability is generally not limited to the deposit.

    • If the property market crashes the seller can come after you for damages.

      There was a famous court case a few years ago. Not only was the guy on the hook for the deposit, but also $2 million in lost property value.

  • +1

    Hey tinahz, Be sure to update us all in the new year if you resolve this matter. I think many of us would be keen to know what you did and how the developer responded etc.

    • Doubt it … i think tinahz just wanted free advice and nothing in return.

      • …just like that guy who got jibbed in his marriage with some Chinese or asian girl in case it wasn't Chinese and lost everything…

  • Is there any update on this post?

    • +1

      …probably forgot about it…lol as is usual with these thread starters….

  • +1

    tinahz .. any updates? a lot of people spent a lot of time to try to help you.

  • +1

    Hi there - any updates on this thread? Just curious to know how it ended. I hope it ended well.

    • …probably got no money to use the internet to post and update his post….hahaha

  • Any updates?

  • how did this end up?

  • Any updates?

  • Outcome please? 4 pages of help, so you to provide an update thanks.

    • Last Seen
      11/03/2019

      Doesn't look it'll happen..

      • yea .. i checked that. pretty disappointing & rude.

  • There's got to be some way to not have to pay. I don't see why it should be legal for a developer to be able to keep your money if you change your mind.

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