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Some Good News for NSW OTP Buyers

Discussion in 'Development' started by sash, 2nd Nov, 2015.

  1. sash

    sash Well-Known Member

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    Finally some good news for OTP buyers NSW in relation to dodgy developers enacting the Sunset clause when prices have risen substantially.

    From today...developers will need to argue in the supreme court as to grounds to why a contract is to be rescinded...


    http://www.domain.com.au/news/new-p...ced-to-parliament-this-month-20151031-gknckw/

    Having said that...I see OTP very risky....I don not think a lot will value up as the Sydney market corrects after a massive boom.
     
  2. Tekoz

    Tekoz Well-Known Member

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    Cool, that sounds like a good news for OTP buyer...

    But yes, there will be no more high margin profit investing in OTP Apartment or H&L.
     
  3. jaybean

    jaybean Well-Known Member

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    Great news.
     
  4. House

    House Well-Known Member Premium Member

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    About time. Surprised this didn't take a few years to push through.

    I'm guessing this is more likely in a buyers market but would a developer accept a clause along the lines of 'upon completion if it values at 95% or less of the contract price, the buyer can terminate and have the deposit refunded'?
     
  5. Blacky

    Blacky Well-Known Member

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    The developer is one thing.
    Likely the bank would not accept it.

    Blacky
     
  6. Scott No Mates

    Scott No Mates Well-Known Member

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    Or above 105% the vendor can rescind.