'Beyond the realm of possibility': Adelaide mum's warning over buying houses off-the-plan

A mother-of-three from Adelaide’s southern suburbs is warning potential buyers about the perils of off-the-plan property purchases.

The construction of Fidelma McCorry’s home is running almost two years behind schedule and the developer is now asking her to pay an extra $140,000.

“I don’t know if I’m more disappointed or more angry really,” she said.

McCorry recently received a letter requesting she pay an additional $144,000 due to increased labour and building material costs.

McCorry purchased the property in October 2021 with the expectation of moving into her home by June 2022.

However, the fine print in her contract contained a “sunset clause,” which stipulated that the price could be renegotiated if the home was not completed by the end of 2023.

McCorry recently received a letter requesting she pay an additional $144,000 due to increased labour and building material costs.

“I literally had my mouth open. I was warned there might be a slight increase, but $144,000 is beyond the realms of possibility,” she said.

Developer Lofty Building Group has confirmed that multiple townhouses in the Somerton Waters development are affected by this issue.

In a statement it said buyers could pay to cover the additional costs or terminate their contracts and receive their deposits back.

The construction of Fidelma McCorry’s home is running almost two years behind schedule.

McCorry said she planned to take her deposit and avoid building new homes in the future.

“I’ve had over $70,000 sitting with these guys that would have earned me interest over that time or been off my mortgage.”

The Master Builders Association has said sunset clauses are not uncommon but has urged consumers to conduct thorough research before entering into off-the-plan property purchases.

The state government has also initiated a review to ensure consumer protection and prevent the exploitation of sunset clauses.

This article was produced with the assistance of 9ExPress.