Give up 10% deposit pre settlement?

Discussion in 'The Buying & Selling Process' started by SarahSydney, 1st Apr, 2020.

Join Australia's most dynamic and respected property investment community
Tags:
  1. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    13,932
    Location:
    Brisbane
    I'm sure many here would like to know how you can legally do this.
     
    Perp, Lindsay_W, Hetty and 1 other person like this.
  2. iloveqld

    iloveqld Well-Known Member

    Joined:
    11th Jan, 2017
    Posts:
    905
    Location:
    Brisbane
    if there is, we will all need to look at our contract when selling ;)
     
    Perp and The Y-man like this.
  3. Propertunity

    Propertunity Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    3,476
    Location:
    NSW
    There are only 2 ways available in the NSW Contract for Sale:
    1. Die
    2. Be declared insane
     
    Hetty and wylie like this.
  4. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    13,932
    Location:
    Brisbane
    Neither of those seems that appealing...
     
  5. Beano

    Beano Well-Known Member

    Joined:
    7th Apr, 2016
    Posts:
    3,345
    Location:
    Brisbane
    But you must have been "insane" to buy so go for the no 2 "insane" .
    :)
     
    iloveqld and Propertunity like this.
  6. SarahSydney

    SarahSydney Member

    Joined:
    1st Apr, 2020
    Posts:
    23
    Location:
    Sydney
    haha again, pretty sure I timed the top of the market...

    22 properties sold in Sydney last week, with 19K for sale....
     
  7. Hetty

    Hetty Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    680
    Location:
    NSW
    It happens. It won’t matter in ten years time and as it’s a PPOR you’ll be living there for a while. We settled in January, no idea what prices are doing here (Western Sydney) don’t care, love my house and every day I say to myself “gee I love living here.”
     
    Perp, Rugrat, KingBendtner and 7 others like this.
  8. SarahSydney

    SarahSydney Member

    Joined:
    1st Apr, 2020
    Posts:
    23
    Location:
    Sydney
    How peaceful to have the ‘head in the sand’ approach to property markets & life... good for you.
     
  9. Hetty

    Hetty Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    680
    Location:
    NSW
    Bit rude. I bought an amazing house within my means and love living here. Why does it matter what it’s worth now? I think it’s probably worth the same amount I paid for it but I can’t take it back now and I’m happy here so there’s no point stressing about something I can’t change. In ten years it’ll probably be worth a lot more than I paid for it. I’ll raise my kids in this house, I’ll be here a long time.

    And despite everyone here trying to give you a reality check and you refusing to listen because apparently YOU know better than all these seasoned investors, you’re putting your head in the sand thinking you can somehow get out of this LEGAL and UNCONDITIONAL contract.
     
    FatElephant, Perp, Rugrat and 17 others like this.
  10. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,598
    Location:
    Gold Coast (Australia Wide)
    Serenity Prayer Piece

    ta
    rolf
     
  11. iloveqld

    iloveqld Well-Known Member

    Joined:
    11th Jan, 2017
    Posts:
    905
    Location:
    Brisbane
    You will fine, mate as you don't need to ask around wondering about losing 10% and time to lawyer and court fee. Sleep well, look for new opportunities as I believe more will come.
     
    Rugrat and Lizzie like this.
  12. RichieRich

    RichieRich New Member

    Joined:
    5th Apr, 2020
    Posts:
    1
    Location:
    Sydney
    Sarah - just to confirm your suspicion of Chris Joye, can I refer you back to his debate on Switzer with John Adams. After a condescending rant at Adams (the basis of which is spurious argument that low repayments justify high debt and property prices), he sheepishly admits to Switzer at 23:11 that '100%.... all bets are off if we go into a global recession, we are going to have a big problem'.

    I wonder what's changed in the meantime that he's still forecasting house price increases in a global recession.
     
  13. # 1

    # 1 Well-Known Member

    Joined:
    6th May, 2019
    Posts:
    267
    Location:
    International
    Welcome to PC, that was an interesting first post :)
     
    KingBendtner, Hetty and iloveqld like this.
  14. Ross36

    Ross36 Well-Known Member

    Joined:
    14th Aug, 2015
    Posts:
    569
    Location:
    Cane Toad Country
    I don't need to support him - he does enough of that himself! - but he's consistently been pretty accurate calling uptrends and downtrends. Just read a recent piece of his, he won't let you forget it. He worked for the RBA and big banks so seems to be on the pulse more than random academics.

    People forget that you typically lose 20%+ straight away EVERY TIME on property investment once you factor in the deposit (your true investment) vs. the fees (stamp duty, building and pest inspection etc. etc.). Doesn't make it a bad investment, but you typically need to wait 10+ years for it to pay off. Interest rates are so low now that if we recover quickly it may well boom hard in many places.
     
    Perp and Rugrat like this.
  15. MC1

    MC1 Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    386
    Location:
    Melbourne
    Hope and a prayer
     
  16. Lindsay_W

    Lindsay_W Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    4,982
    Location:
    QLD/Australia Wide
    Care to share how you went?
     
    Rugrat likes this.
  17. Rugrat

    Rugrat Well-Known Member

    Joined:
    16th Jul, 2015
    Posts:
    376
    Location:
    Australia
    It always amazes me when people get cold feet like this and pull out of purchases at the last minute, risking deposits and much more, when they still have the means to complete the purchase.

    Its seems to me, more often then not, they would be better off completing the purchase and then relisting straight away if they really really don't want / cannot afford to keep it. And then wearing that cost, rather then the potiential losses from pulling out just prior to settlement.

    Although in truth, if it were me, I would complete the purchase and then hold the property for as long as possible until the property market recovers. Although I also don't think any dip is going to be anywhere as bad as some doomsdayers seem to be predicting. Even if things are that bad, so long as you can afford to hold, then you are still usually best off doing so.
    If it becomes too tight, you can always get the mortgage deffered, and then list for sale during that defferment period.
     
  18. Lindsay_W

    Lindsay_W Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    4,982
    Location:
    QLD/Australia Wide
    I agree, the way I look at this scenario is the OP is guaranteeing a 10% loss (deposit) because they're worried about a paper loss (vals dropping in the short term) even though they intend to live in the property ie. medium to long term hold.
    Actually the more I re-read this thread the more I'm leaning towards OP not even being in this predicament, instead used it as a cover to predict the market doom and gloom more than addressing the issue at hand. Could be wrong, just seems fishy
     
  19. Hetty

    Hetty Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    680
    Location:
    NSW
    Pretty sure OP is a troll though.
     
  20. Lizzie

    Lizzie Well-Known Member

    Joined:
    9th Jul, 2015
    Posts:
    9,618
    Location:
    Planet A
    Think the op may have been removed from the forum for trolling
     
    The Y-man likes this.