mentality of a house purchaser

  1. 955 Posts.
    It's a comment on this article here:
    We bought into an "upmarket" estate ten years ago, at its inception.
    I learned that I have more protection when buying a car - either new or used - than I do buying a house and land from a developer and / or builder.
    In our view the ACCC needs to review all legislation related to urban developments.
    Imagine depositing $500,000 in a bank account with a verbal assurance of 5% per annum interest for 5 years. When you return five years later, the bank says "we had to make some adjustments because other people didn't want to pay and there were things beyond our control so we've only got $432,000 for you".
    Banks are currently obliged to give you what they promise to you; they're required to give you the conditions in writing too. And most Australians will invest perhaps $50,000 with a bank at one time or another. We can, essentially, trust the system.
    Many Australians will hand $500,000 to a developer, go through something equivalent to the situation described above (getting nothing like what was promised), and find themselves unprotected, with the developer gone, and horrendously expensive legal proceedings required against a massive corporate entity.
    There have been all sorts of inquiries all over Australia that have revealed concerning relationships between developers, their representatives, and politicians.
    Time for MASSIVE change in this industry.

    So we can guess they paid $500K for their house and 5 years later it is valued at $432K? (or something else?)

    And a verbal exchange took place with the developer where they were told to expect 5 % per annum capital gain?

    And they want that verbal assurance they get at the office of the display village to carry the same weight as a bank's quoted interest rate on savings?
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