#27958
g-g
Flatchatter

    Interesting.

    From 2004-2006, a large developer in NSW offered ‘off-the-plan’ purchases that included:

    1. 50% rebate of rent paid on another of their already built apartments to be counted towards the deposit – including 6.5% interest on that money. Rents at that time were $400-$500 a week.

    2. An expectation that the ‘off-the-plan’ purchase would not settle for at least two years

    3. For a 5% cash deposit on one apartment, you could purchase two apartments!

    4. Guaranteed finance from one major or merchant bank

    Needless to say, the GFC hit, the valuations of the apartments fell 20%, the merchant bank went belly-up, the major bank tightened its lending criteria, the developer tried to squib on its deposit agreement.