ASK161: I have an off-plan investment property that’s gone wrong. How can this be fixed? Can I get my deposit back?

In a bold move this week, we only have one property investment related question on Ask Rob & Rob.

No, that’s not us being lazy.

That’s just us wanting to dedicate time to expand on this one, off-plan buy to let investment question with the level of detail that’s needed.

We get many questions relating to off-plan investment property each and every week, but none as frustrating as this. So hit the play button to hear Trevor’s story and listen to what Rob & Rob would do in this situation.

 

Trevor in Broxbourne, Hertfordshire is having a tough time with an off-plan investment property in Liverpool. He exchanged contracts in November 2017 with completion due around June 2018 with a long-stop date of August 2018.

Fast forward to February 2018 and Trevor was still nowhere near completing on this property. In fact, when Trevor visited the site, work hadn’t even begun on his buy to let investment.

Skip to June 2018 and still nothing had progressed. Since then, Trevor has been back and forth with the developers who have since offered him three alternative plot switches (one of them with a hefty additional cost of £20,000), but has also discovered other amenities which are now no longer included within the build or have been moved elsewhere. Not ideal when purchasing an off-plan investment property.

If he chose to stick with his original off-plan apartment, the developer had changed the plan so the bedroom no longer had a window and no natural ventilation - something which would possibly affect the rental potential of the property.

So, Trevor has decided to call it a day and the developer has 28 working days to return his deposit. Is it likely to be plain sailing or can Trevor look at exploring breach of contract?

In a twist of fate, Rob & Rob did some research on the property developer in question and you’ll have to listen to the podcast to find out why the Robs chose to walk away from their deals.

But the Robs do have some handy information for those who want to safely invest in off-plan property. Should you look for a good track record, protected deposits or both? Make sure you grab a notebook and pen as Rob & Rob take you through a checklist for investing in off-plan property safely.

Do Rob & Rob think there’s a chance for Trevor to get his deposit back? Listen and let us know what you think of this week’s podcast.

Enjoy this week’s Rob & Rob. 

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