A legal headache - Australia

Friday 16 April 2004

It sounds like an investor's horror movie come true.

By The Landlord

That routine trip to the bank to finalise last-minute details of your off-the-plan apartment purchase has just turned into a nightmare.

What you thought was a routine session to sign the loan documents has instead developed into a make-or-break situation for you and your family, as the bank explains that new waterfront apartment you've contracted to buy for $800,000 is worth only $650,000.

As the cold sweat starts to break, you feebly mumble that the purchase price is $800,000 so it must be worth that amount.

The bank is unmoved. If you want to buy it for $800,000 that's your business, but it will only lend 70per cent of its valuation and you will have to fund the shortfall.

As the high-rise apartment market takes a turn for the worse, the number of disputes is rising as off-the-plan buyers try to get out of their contracts because they face massive shortfalls compared with their purchase prices.

Read More - Opens in a new window
Commenting is closed

House Prices

No stopping Capital price rises

There’s no sign of a slow-down in Wellington’s property prices with Trade Me Property’s latest data showing that asking prices continue to rise solidly.


NZ proptech start-up scores major investor

Auckland-based commercial property disrupter, Jasper, has raised $2.3 million in seed funding following investment from European asset manager M7 Real Estate.


LVR limits slow down investors

LVR speed limits continue to have a "strong effect" on investors, according to CoreLogic, after the latest Reserve Bank data showed a drop in investor borrowing.

Site by PHP Developer