Many buyers in Niecon's The Oracle development at Broadbeach purchased off the plan and failed to settle. A recent court decision shows the losses that an off-the-plan buyer may suffer if the buyer does not settle.
Purchase price for apartment 601 - $1,010,000
Plus holding costs & interest from settlement until court judgment - $196,631
Less estimated net proceeds if sold today - $700,000
Plus agents fees to sell - $29,645
Plus legal fees to sell - $2,200
Less Deposit - $101,000
Total owed = $437,476, plus interest at 12% until this is paid, plus legal costs of the lawsuit.
So this buyer lost a total of at least $538,476, which is more than 50% of the contract price for the apartment, and didn't get the apartment. Note that the valuation of the apartment dropped 30%. Take care when buying off the plan. (And read this book first!)
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