Some advise please..
Having paid 10% deposit about 1 year ago on an off the plan purchase, settlement is just around the corner.
To me it appears that I have agreed to a price that is higher than the current market value of the property and it is potentially more than 10% higher.
Is it best to settle knowing that it is going to take some time to get in the black or accept the loss of the deposit?
Anyone know the TAX implications of the above scenario? (If the deposit is forfeited is it able to be used as a capital loss against future capital gains?)
Regards SD
unfortunaly you are bound by the contract …if the value was higher then the amount on the contract would you like them to increase the price to reflect the current market value ?
remember its only a perceived value of what some one MIGHT be willing to pay..
this is the problem with buying off the plan you have an equal chance of gaining value or loosing it not because it cost any less to build but because no one is willing to pay the asking price under the current circumstances for what ever reason… over supply , no buyers, high interest rates, bank wont lend etc etc..
The tax implications of both scenario's buy or don't buy are better answered by your accountant…
if you bought with intent of investing then you may be able to write off the loss if how ever you were buying to live in it well that's another thing entirely. talk to your accountant and solicitor before deciding your next move.
good luck !
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