We have recently put a holding deposit on two new blocks in Maitland, with the expected registration day “expected” in January. We have the block at what we feel are reasonable price, which took some time to find.
Our last project that was due for registration in 3 months, took 12 months.
We are now to sign the contracts, and the “to be registered in six months” exit clause has been removed, and it is now 12 month before we could break the contract.
The market in Maitland is way behind Sydney, or even Newcastle, and still has good momentum, though 12 months till registration, 1 month till had over, six months to build a spec home. A lot could happen in that amount of time.
There are other people waiting to buy the blocks, so we have minimal bargaining power. Which leaves the options of:
Forget the deal.
Proceed with one only,
Proceed with two and try and get them to hold a 8 month exit.
Proceed.
We are cautious of what the market may look like in 15 month when the house go up for sale.
Any advice?
What settlement clauses have work in your favour?
How do we bargain this with out bargaining power?
Thanks,
In advance.
Michael
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