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couple thought, as it started scaling back,
and it was with this minor error that
everything went pear-shaped.
“ The morning of settlement was the
first time we discovered the problem,”
“ Our solicitor called us and said she
didn’t think we had enough money. We
were short by around $5000!
“ We had to run around that morning
and desperately try to find more money to
complete the purchase.
“We’d already used all our money to
buy the unit and we didn’t really have
anyone to borrow the money from, so
Dan ended up getting a cash advance
on his credit card. That was really our
only option. ”
While it was a mad rush to find the
funds needed to finalise the purchase,
the couple managed to get the money
in time and the property purchase
The pair narrowly avoided a potentially
disastrous situation where, in the best-
case scenario, they could’ve had to pay
default interest if the seller chose to
And in the worst-case scenario they
could’ve been unable to settle and pay
the potentially expensive penalties
associated with that, such as forfeiting
Ultimately they could’ve been out
of pocket thousands, if not tens of
thousands, of dollars.
While it all worked out in the end,
Katie notes that it was an extremely
“ We could’ve lost a lot of money if the
purchase didn’t go through – money we
didn’t have,” she says.
“ It was so stressful, and it was just lucky
that Dan had a credit card that he could
pull the money out of.
“ Afterwards, of course, we had people
offer to loan us the money, but that was
way after settlement!”
While Dan had to pay a fee for the cash
advance on his credit card, Katie notes
it was “practically nothing” compared to
the costs that would’ve been involved if
they hadn’t completed the purchase.
And she says at the end of the day the
grant they received was used to pay the
cash advance back.
After settlement the couple went back
to their mortgage broker to query the
error, and they admitted to having made
a mistake in the calculation of the costs.
“ We then had another stressful episode
after settlement where we thought our
first mortgage payment would be a month
later, but in fact it was only five days later
that it was due,” she says.
“ I wasn’t told money would be coming
out of our account, but luckily I picked
up on it and we had to scramble, again,
to put enough money in to cover the
first repayment. ”
So looking back, to avoid this nightmare
scenario, what would Katie and Dan have
“ I wouldn’t have rushed into the
purchase. I ’d have taken my time and
done proper research, and not been
swept up in t he emotion of it all,”
“ We just saw the property and loved
it and we got carried away and didn’t
bother doing any research.
“ Even though I already owned a unit,
my dad had organised that purchase, so I
really didn’t know how to buy a property.
I didn’t know what to do and I didn’t
know any of the rules. ”
Despite all the drama associated with
settling on the purchase, Katie and
Dan, now both in their early 30s, are
very happy with the buy and believe it’s
been a good investment so far, with the
property having increased in value by
around $100,000 in just two years.
Rental yields are also very good for
the area, Katie adds, with rents in the
building ranging from the late $500s per
week to the mid $600s.
“ After settlement we thought ‘what
on earth have we done?’ because we’d
made such a big financial commitment.
We were massive emotional buyers, but
at the end of the day it’s been a good
purchase for us,” she says. API
*Not their real names. Names changed
to protect privacy.
æWe just saw the property and loved it
and we got carried away and didn’t bother
doing any research.Æ
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