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Bought two off the plan now need to sell at least one

Discussion in 'The Buying & Selling Process' started by VinMariani, 31st Aug, 2016.

  1. VinMariani

    VinMariani Active Member

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    29th Mar, 2016
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    Australia
    Hi guys,

    I bought two apartments off the plan earlier this year and they are due to be completed in November this year.

    I paid $25,000 deposit per apartment (x2) and need to fund the rest when the property settles in November.
    One apartment is worth $455,000 and the second is $660,000. It's in a prime St Kilda location, Melbourne.

    However, with my current financial situation, I can't borrow close to $1 million, so will need to settle for one.

    How easy is it for me to sell off one of the apartments or more so transfer to another buyer. I just want to get my $25,000 deposit back.

    What is the best way to do this? Contact the property developers themselves and ask to sell it back or can I list it on Real Estate site and sell it there? As mentioned before, I can;t negotiate the price on the apartment and can legally only claim back my deposit price of $25,000.

    I only have two months before the properties settle and need to finance them so it's making me nervous.

    Any advice is appreciated.

    Regards
     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Gold Coast

    Hiya

    I cant comment on the onsell, but ave you looked at all options with regards the finance ?

    ta
    rolf
     
  3. VinMariani

    VinMariani Active Member

    Joined:
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    Hi Rolf,

    I currently make around $70 K PA and was hoping to basically nearly double that with another gig I was going to do but that recently fell through. I am also currently paying another interest only loan on a property so there is no way I'd be able to borrow $1 million unfortunately.

    So the only option for me is to nominate another buyer for the second apartment. That is how I came into buying these two apartments, the person nominated myself.

    Cheers
     
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    It will be pretty difficult to sell. Prepare for the worst while trying. You could lose much more than your $25k.
     
  5. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    Might have to sell the existing property to settle if you can't sell the OTP.
     
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  6. VinMariani

    VinMariani Active Member

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    Can you clarify this please?
    I thought the worst case scenario is losing the deposit if you don't settle.

    Also why would it be hard to sell?
     
  7. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    How does one get "nominated"/targeted to buy 2 x OTP properties?
     
  8. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    If its already been nominated to you by another purchaser, then you will need specific advice from your lawyer as to if you can re-nominate with a form 6a stat dec and be exempt from stamp duty. Otherwise you just advise the developer and get the developer's sales agent to remarket it and nominate it to someone else.
     
  9. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    If you cannot sell it then the developer can resell it. the purchaser can be liable for his costs in marketting, and commission etc. If he resells it for lower than the contract price the shortfall too.

    The developer doesn't have a contract with you so he probably cannot sue you. But he would sue the purchaser and the purchaser would probably sue you.

    There is a QLD case where the amount was $600,000 after legal costs.

    Have you sought legal advice on the stamp duty?
     
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  10. House

    House Well-Known Member Premium Member

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    Check the contract for terms to sell. Mine stated I can't onsell without the permission of the developer so in the process of obtaining that.

    The people I bought it through are happy to help find a buyer but at only the contract price and 2.2% cost plus legals. Lose about $10k but long term it should be worth it now that I've learned a lot.

    Worth reading my thread on the same thing- Anyone Obtained Developers Permission to Onsell OTP?
    and Selling Off The Plan apartment before it is fully built ?

    What was the contract price, much difference to the valued prices you gave?
     
    Last edited: 1st Sep, 2016
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