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Deborah Awyzio
Deborah Awyzio, Solicitor
Category: Australia Law
Satisfied Customers: 863
Experience:  Bachelor of Laws (QUT), BIT (QUT), Family Law Accredited Specialist, over 12 years experience
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Purchased first investment property through Park Trent Property

Customer Question

Purchased first investment property through Park Trent Property Group 3 years ago, promised capital gain, but value less 3 years later.
Advised to purchase second property at the same time, off the plan for $359000.00 studio apartment (less than 40msq) on the proviso that this would gain in capital value while being built.
Bank has valued it at $312000.00 and will only lend 80 per cent of valuation due to fact that it is less than 40msq. We were not told that this would be an issue by Park Trent Property Group.
Commonwealth Bank initially approved loan of $287000.00 off purchase price and now has renigged. They have re-valued the property and the amount they will loan will be $250000.this will be $80000 less than the required amount Park Trent Property group is now pressuring us to put this amount onto our own house mortgage which was never agreed to as part of the investment. They also advised that there was no other bank that would finance the loan becuase of the size of the property.
We were also advised by Park Trent that the investment properties would not be link to our own house mortgage at upon the purchase of the second property.
I would like to know where we stand legally with this situation.
Steven Owen PH XXXXXXXXXX H (02) 62917490
Submitted: 4 years ago.
Category: Australia Law
Expert:  Leon replied 4 years ago.
Good Evening

Thank you for your question. To Introduce myself I am a sydney based Solicitor and will do my best to provide you with relevant information to assist you.

Did you have a solicitor act for you?

Were these promises in the contract as guarantees? What documents do you have to show that they made these representations and that they mislead you?
Customer: replied 4 years ago.

The solicitor is part of the settlement process. The promises were not in writing but presented by the senior sales consultant when were introduce to the investments

Expert:  Leon replied 4 years ago.
Good Morning,

In the advertising material for what you purchased is there anything that saves a guarantee capital gain within the period of time?

If you can obtain the material in writing, even if it does not apply to your particular unit, you can show that their advertising was misleading and deceptive and you have an action against the agents for your losses.

How were they presented to you by the senior sales consultant?
Customer: replied 4 years ago.

I will see if we have or can get any advertising guaranteeing capital gain. The sales consultant presented us with information on investments in our home initially then we went to their office in Woolongong where he had arranged to present the two investment properties options to us

Expert:  Leon replied 4 years ago.
Good Afternoon,

If you can locate anything in the advertising material that provides a guarantee as to the increasing value in capital gains then this can be used as evidence against the agent for false and misleading conduct.

We need to see what you can get on whether they provided you with any documentation showing you the profits you are going to make.

Once you have this, you will then need to speak to a solicitor about commencing proceedings against the agent.

Was the agent in New South Wales agent that the proposal to you?