Should be buy or wait?

We really need some advice.

We bought a block of unregistered land 2 years ago in rouse hill for 585000 (near Rouse road). Our solicitor informed us that since the contract is going to lapse by end of Sep we are free to move out of this contract and we get our money back. However, the developer is keen to settle the land and wants us to sign a revised contract with a new price – 557000

We are confused that should we re-sign the contract or buy something else, or just wait until we have a clarity about the financial market.

Please note we have that this was always an investment property.

Thanks in advance.

 

What are similar blocks selling for, or completed houses in the area? Are you going to build or just hold the land? If you are getting a loan, whats the val?

Theres a lot of important information missing.

 

You originally wanted to buy it - what has changed?

 

Hi Trainee,

Similar blocks are selling for 550k.

If we buy the land, we will built the house. we will be paying 20% deposit.

 

Actually settling for 550 or asking 550?

Either way, thats already lower than the revised contract price. Why pay more?

 

Market has changed a lot. Old houses with bigger blocks are selling for 850k

 

You dont pay by the word. Provide more info. Did it used to sell for 1m? 700k? Is it up or down and how does that affect your decision?

 

I'm sure there were older houses on bigger blocks for sale at the time you originally signed the purchase contract.
So has your strategy or intention to invest changed since then?
What exactly would be the benefit of cancelling the contract and 'waiting'? Waiting for what?

 

I'd say that the value of the land would've dropped by more than that in 2 years. You may be up for mortgage insurance once you're ready to build on it. i had a client whose land valuation came in at contract price after a long period to registration, but once the builder was ready to start, the bank then reduced the valuation of the land and they had to come up with a higher deposit on the construction.
Maybe take a look at completed projects still sitting on the market. At least you will have the surety of doing a valuation prior to being locked in.
Will the land be registering in September?

 

337 sqm lots currently being advertised for $599K, further out than Rouse Road too.

 

When does the developer expect the land to be registered? Also, how large is your block?

 

The premium on current market price is probably about equal to your deposit