Box Hill (NSW)

Box Hill: Fresh warnings as Sydney home buyers left in the lurch

Box Hill at it again

 

This is unethical but not illegal. (It’s not me by the way.)
The practice of locking buyers when things get tough but ejecting them when prices can bring massive EXTRA profits to developers. In this case 100x 320,000 is $32 million extra.
There are some great developers who sold about 12 months ago in Terry Road at $1500 per square metre and the buyers are reselling at $2600 per square metre reaping an average of $330,000 gross profit in the last 13 months after only putting down 10% deposit and without even settling.
One person bought 10 blocks at $450k each putting down $450k as deposit. He has onsold without settling at $800,000 each turning his $450,000 into $3,950,000.

 

The facts are somewhat different to the media. The developer didnt seem to have very good plans and hadnt even submitted (AND STILL HASNT) application to council for a DA to develop and subdivide. These buyers didnt get legal advice and assumed land sales mean a land development would occur. The first warning bell should have been that they proposed lots where inside a existing site so access roads were not even a LEP plan issue. Their contracts where for planned lots that were never going to exist. The contracts were a fiction. Most solicitors would caution unapproved land being sold OTP for that specific reason.

 

WOW! I understand those affected are looking around for a lawyer for a class action, But do lawyers draw up contracts for non approved land, I can’t see how the contract would be valid if it doesn’t specify the lot precisely.