“Just don’t understand when the developer knew they would not/could not build as planned (early 2004), why all monies paid as deposits in 2003 were not returned immediately.”
Probably because such income funds other developments and site acquisitions, otherwise where would the funding come from?
“There is no other word for it other than fraud from the day the developer knew they would never build.”
Maybe, but try taking it through the Courts to prove “fraud”, if you can afford to fund the legal action that is.
“Here we are in 2007 and they’re still holding on to some of these monies, riding on the back of long/delayed court hearings. Then they automatically appeal, dragging it out longer.”
Equally as annoying is that it is always possible, even where all consents are in place, that a delay of 1 or 2 years is planned into the project.
Simple sums. Say a development of 500 units @ 150.000€ x 25% deposit = 18.750.000€ they sit on for 1 year, with money on deposit or invested. Say @ 5% is not far off 1.000.000€ per year just to sit on your money. Assuming a land cost of 0€ as funded from another development.
But even today people are fallingn for it.
The new dream home of 150.000 1 year building and 2 years late @ 5% turns into 173.000€ +