Real estate, post level 4

Forums › Home Workshop DIY › Real estate, post level 4

1 | ... | 117 | 118 | 119 | 120 | 121 | 122 | 123 | 124 | 125 | 126 | 127 | ... | 172

5059 posts

Uber Geek

Trusted

#2861505 4-Feb-2022 07:25

Do you know the reason for the delay?

Why has it delayed so much already given it's still (based on the initial sunset clause) 12 months away? And now over 1.5 years away?

Buying a Tesla? Use my Tesla referral link and we both get discounts and credits.

tdgeek

29740 posts

Uber Geek

Trusted

Lifetime subscriber

#2861506 4-Feb-2022 07:37

heavenlywild: Do you know the reason for the delay?

Why has it delayed so much already given it's still (based on the initial sunset clause) 12 months away? And now over 1.5 years away?

Maybe this

The so-called 'sunset clause' is meant to protect buyers from unreasonably long delays in completing a project.

However, they had been increasingly used by some developers to cancel off-plan property contracts, usually to get a better price from another buyer, amid rising prices to cover building supplies and project delays.

Plenty of excuses for delays by developers, supply issues, Covid, oh well, finish later, exit the contract as the build is now saleable at another 80k, money for jam

Batman

Mad Scientist
29760 posts

Uber Geek

Trusted

Lifetime subscriber

#2861510 4-Feb-2022 07:45

Divhon88:

My solicitor has just informed me that the developer wants to extend our sunset clause from 28 of Feb 2023 to the 20th of Sept 2023. Is this the darkest days of our lives.

Do I have a choice? Should I just say yes as there's practically no alternative for me?

To those who bought off the plan turn keys. How close did your house completion came to your sunset clauses?

may be genuine, may be taking you for a ride

find out if they are serious about building your house

- are they building anything at the moment

- how many do they need to build

- why do they need to increase the timeframe

- where are you in the queue

re options only your solicitor can advice

if they are genuine and everybody else cancels you might be next in line

if they are hell bent on not building your house then probably best to look elsewhere

alasta

6703 posts

Uber Geek

Trusted

Subscriber

#2861533 4-Feb-2022 08:49

Divhon88:

My solicitor has just informed me that the developer wants to extend our sunset clause from 28 of Feb 2023 to the 20th of Sept 2023. Is this the darkest days of our lives.

Do I have a choice? Should I just say yes as there's practically no alternative for me?

To those who bought off the plan turn keys. How close did your house completion came to your sunset clauses?

There are a couple of important details that you have not provided:

Is this the standard sunset clause that can only be exercised by the purchaser? Or is it one of these dodgy contracts where the sunset clause can be exercised by either party?
Is there a time limit to exercise the sunset clause? e.g. my contract only allowed for a one week period after which the sunset clause lapses.

My own personal experience:

Unit purchased off the plans in May 2017 with an indicative completion date of Q3 2019 and sunset clause for August 2020.
As of August 2020 the building works had not been completed. I elected to let the sunset clause lapse as the market had increased significantly since I signed the contract and I was reasonably confident that it would eventually be completed.
Building works were completed in December 2020 but settlement was unable to proceed due to a dispute with the council. Settlement eventually occurred in July 2021.

Buying off the plans is a great way to get yourself in a brand new home but you need to do extensive due diligence on the developer and contract, and realistically you need to be prepared to wait up to five years despite what the salesperson might tell you.

quickymart

13925 posts

Uber Geek

ID Verified

#2861535 4-Feb-2022 08:53

Sounds like a lot of effort. I think I'd just buy something already built.

cshwone

1070 posts

Uber Geek

#2861538 4-Feb-2022 08:59

alasta:

There are a couple of important details that you have not provided:

Is this the standard sunset clause that can only be exercised by the purchaser? Or is it one of these dodgy contracts where the sunset clause can be exercised by either party?
Is there a time limit to exercise the sunset clause? e.g. my contract only allowed for a one week period after which the sunset clause lapses.

And the bolded bit is the key to the whole decision process.

alasta

6703 posts

Uber Geek

Trusted

Subscriber

#2861603 4-Feb-2022 10:41

quickymart:

Sounds like a lot of effort. I think I'd just buy something already built.

Then you have to compete against crowds of people at open homes and auctions and/or deal with tender documentation. Then there's all the due diligence around the LIM and condition of the building, plus risk of unconsented renovations, etc.

Buying property is never easy regardless of how do you it.

Equinox IT

Cloud spending continues to surge globally, but most organisations haven’t made the changes necessary to maximise the value and cost-efficiency benefits of their cloud investments. Download the whitepaper From Overspend to Advantage now.

quickymart

13925 posts

Uber Geek

ID Verified

#2861632 4-Feb-2022 11:14

https://www.newsroom.co.nz/ideasroom/a-greedy-actor-behind-our-housing-market

tdgeek

29740 posts

Uber Geek

Trusted

Lifetime subscriber

#2861685 4-Feb-2022 12:14

quickymart:

https://www.newsroom.co.nz/ideasroom/a-greedy-actor-behind-our-housing-market

Not sure I understand this. Its the banks fault for lending money to existing homeowners so they can be landlords?

quickymart

13925 posts

Uber Geek

ID Verified

#2861688 4-Feb-2022 12:23

This looks a bit more positive:

https://www.nzherald.co.nz/business/nz-housing-consent-records-broken-nearing-50000-mark-stats-nz/K3AFAYQ52AQL32N43M6W4KVKXA/

Divhon88

99 posts

Master Geek

ID Verified

#2861911 5-Feb-2022 03:29

Batman:

may be genuine, may be taking you for a ride

find out if they are serious about building your house

- are they building anything at the moment

- how many do they need to build

- why do they need to increase the timeframe

- where are you in the queue

re options only your solicitor can advice

if they are genuine and everybody else cancels you might be next in line

if they are hell bent on not building your house then probably best to look elsewhere

I think it's genuine, Yes they are building at the moment and I would say it's the fastest I've seen it.

They will build 86 homes in total and the first 8 will move in a few weeks.

They need to increase timeframe as they claim they found an issue with storm water requirement. I'm suppose to be on stage 2 que with a completion date of 3rd quarter this year.

The bad news is because of the storm water issue they will have to start the build on the other side of the project which would push me way behind the que which will be the last stage with new target of completion 1st quarter 2023 a 6 month delay.

quickymart

13925 posts

Uber Geek

ID Verified

#2865141 11-Feb-2022 08:59

https://www.newshub.co.nz/home/money/2022/02/house-prices-up-6-1-pct-with-new-zealand-s-national-average-now-over-1-06-million.html

Does "sustainable" mean "prices dropping back to realistic levels that people can afford" (unlikely) or "prices will level off and stop rising so ridiculously fast" (more likely)?

tdgeek

29740 posts

Uber Geek

Trusted

Lifetime subscriber

#2865147 11-Feb-2022 09:12

quickymart:

https://www.newshub.co.nz/home/money/2022/02/house-prices-up-6-1-pct-with-new-zealand-s-national-average-now-over-1-06-million.html

Does "sustainable" mean "prices dropping back to realistic levels that people can afford" (unlikely) or "prices will level off and stop rising so ridiculously fast" (more likely)?

The Stuff version implies that house price growth will slow, but it will grow

GV27

5896 posts

Uber Geek

#2865149 11-Feb-2022 09:16

quickymart:

https://www.newshub.co.nz/home/money/2022/02/house-prices-up-6-1-pct-with-new-zealand-s-national-average-now-over-1-06-million.html

Does "sustainable" mean "prices dropping back to realistic levels that people can afford" (unlikely) or "prices will level off and stop rising so ridiculously fast" (more likely)?

Chloe Swarbrick has been asking this question. Locking in house prices at 11x incomes instead of them spiraling is a step in the right direction, but does not suddenly make them affordable.

Demographia uses something like a 3x ratio to determine what is considered 'affordable' and we are so far past 'severely unaffordable' that I don't even know what they classify our house prices as anymore.

Remember, the economy relies on discretionary spending at a certain level to sustain hospo, tourism and other industries, and we have people committing at least 40% of their income for the next 30 years on accommodation costs alone - often just to get a starter home.

There just won't be enough money circulating in the economy unless something is done to reduce accommodation costs and owner-occupiers given a soft-landing so they don't just go to the mattresses

We still need people to spend and have families and we are locking a future where fewer and fewer people can afford to do that.

Handsomedan

7281 posts

Uber Geek

ID Verified

Trusted

Subscriber

#2865151 11-Feb-2022 09:24

GV27:

quickymart:

https://www.newshub.co.nz/home/money/2022/02/house-prices-up-6-1-pct-with-new-zealand-s-national-average-now-over-1-06-million.html

Does "sustainable" mean "prices dropping back to realistic levels that people can afford" (unlikely) or "prices will level off and stop rising so ridiculously fast" (more likely)?

Chloe Swarbrick has been asking this question. Locking in house prices at 11x incomes instead of them spiraling is a step in the right direction, but does not suddenly make them affordable.

Demographia uses something like a 3x ratio to determine what is considered 'affordable' and we are so far past 'severely unaffordable' that I don't even know what they classify our house prices as anymore.

Remember, the economy relies on discretionary spending at a certain level to sustain hospo, tourism and other industries, and we have people committing at least 40% of their income for the next 30 years on accommodation costs alone - often just to get a starter home.

There just won't be enough money circulating in the economy unless something is done to reduce accommodation costs and owner-occupiers given a soft-landing so they don't just go to the mattresses

We still need people to spend and have families and we are locking a future where fewer and fewer people can afford to do that.

The rampant waste in Government needs to be addressed - then certain taxes can be reduced, which will help (slightly) with the cost of living.

House prices do need to came back, or at least slow in their growth, but income and more specifically disposable income needs to grow with the cost of living...it hasn't kept up for a long time through successive governments. And simply raising wages/salaries hurts the businesses that pay those salaries/wages, so it's a bit of a catch-22.

Handsome Dan Has Spoken.
Handsome Dan needs to stop adding three dots to every sentence...

Handsome Dan does not currently have a side hustle as the mascot for Yale

*Gladly accepting donations...

1 | ... | 117 | 118 | 119 | 120 | 121 | 122 | 123 | 124 | 125 | 126 | 127 | ... | 172