Unfortunately, I got taken in by Central Equity and am having to complete on a flat in Melbourne Tower this month!
When I signed the contract 2 years ago at a property expo in London, I was told (by the MD) that if my circumstances were different in 2 yrs – I could as a last resort sell back the contract.
My circumstances have changed. The flat 2 years later has been valued AT 15% LESS than the purcase price. The banks are also not lending 80% on the CE development! So 20% down in cash.
I did mention pulling out (as verbally mentioned at sale) – but got a letter within days from their lawyers.
It is also interesting that I was flagged by other disucssion groups that CE properties were being undervalued – CE persistantly denied this – which was an outright lie – giving me no time to prepare for a 15% shortfall 1 month before completion.
I would love to hear from anyone in the same situation! or anyone who thinks there is a legit way of pulling out.
Thanks
jhighlo,
Neil Jenman runs a service for people who feel like they’ve been unfairly done by in real estate. It’s free to you as a consumer, and paid for by his RE agencies. try jenman.com.au and send him an email. He may be able to help.
As for a unit being worth 15% less than when it was built… well, the market has changed, I believe, from 2 years ago, and I think a 15% price drop is probably common in areas that are heavily-supplied. Not sure what you can do about that- whether it was over-valued in the first place, or is now just reflecting the current state of the market. It is often said that OTP’s have questionable value until they are actually resold after completion, and then a more “true” market figure is formed.
kay henry
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