Wednesday, March 23, 2011

Soul Settlements Coming Up

Soul off-the-plan purchasers in the low rise section are getting ready for settlement. Soul is located at Surfers Paradise, in a prime location. It is a very high end high rise. Photo from March showing progress.

Valuers and banks for purchasers are looking at contracts and doing valuations. I have heard of a situation where the apartment was valued at 70% of the contract price. That may not seem to bad, but if the contact price is $2M, then the purchaser needs to find an extra $600,000 to settle.

And there has been no announcement of who will manage this complex.

Will Juniper survive, or head the same way as Raptis and Niecon?

One purchaser is trying to resell his 2 bed apartment for more than a 3 bed apartment is being valued at: www.soul-apartment.com/

4 comments:

Annette Higgins said...

The buyer will likely need to find more than $600,000. The valuation is 70% of contract price = $1.4M. Most banks will only lend 80% of the bank valuation = $1.12M. That is $880,000 the buyer will need to find. Unfortunately it is a tough time for sellers on both coasts.

tom.varga said...

I think there is still a lot of water that needs to head under the bridge. I have seen valuation for a 2 bedroom low level come in at $1.5 million. Not bad if you bought early but not good if you bought late. A 2007 or early 2008 purchase should be OK with level 20 3 bedroom units valuing at the $1.8 million levels. Sure 80% by the banks and the gap are an issue but remember this is all just demand/supply and valuers protecting themselves. If Juniper keep a cool head they will survive fine.

George said...

I purchased my apartment on the 31st floor for $2,230,000
Had it valued last week came in at $1.3M caused a discussion amongst valuers at the company most thought this was to high. Company would not put it's name to the valuation.

ShaunJ said...

Buyers are struggling to settle Soul apartments because they are so over valued. Perhaps the developers should become more amicable to renegoting with current purchasers than to be left with non settlements.