Marine Quarter Southport developer demands extra $114,000 from elderly couple

An elderly Gold Coast couple say they face “living out of a suitcase” indefinitely after a developer hit them with a crushing cash demand before handing over a new unit.

An elderly Gold Coast couple say they face “living out of a suitcase” indefinitely after a developer demanded they fork out an extra $114,000 for a Southport unit.

Paul and Ronda Thomas in February 2019 signed a contract to buy the two-bedroom unit in the Oceanic Tower at Marine Quarter, which is being developed by Melbourne-based BuildCap on a site bordering the Broadwater Parklands.

The pair sold a unit at the Palmerston Tower, also in Southport, to fund the $542,000 purchase of what they hoped would be the home they would see out their retirement in.

After years of delays, and the collapse of original builders GCB Constructions, the tower is finally nearing completion.

However on October 18 the couple received a letter from solicitors acting on behalf of the developer demanding an extra $114,560.

The letter blamed “unanticipated escalations in building costs” for the price hike and gave the couple just 14 days to agree or risk losing their unit.

“We reiterate that in the event purchase price increases are not secured, (the developer) will need to consider its options to terminate the sale contracts,” the letter stated.

Mr Thomas said that being pensioners with no access to loan facilities, the increase was not something they could afford.

“Ronda’s in her eighties so at this stage, we’re running out of time,” he said.

“We went into this project with high elation that this would be our last place (to live) as we are both very elderly and suffer from serious illnesses.”

Paul and Ronda Thomas, who are fighting a developer's demand for more money for a unit they signed up to buy in 2019. Picture: Keith Woods.

CRUEL BLOW

Mr Thomas said the demand was a cruel blow to the couple, who had already spent far longer than they anticipated without their own home after selling their previous unit to fund the purchase.

“We sold our unit in Palmerston Tower. We had a penthouse there and we (decided to downsize) at that stage. We sold at a reasonable price to downsize to go into this so we could retire for the rest of our lives,” he said.

“It was supposed to take less than two years.”

Mrs Thomas, a regular swimmer at the Southport Aquatic Centre, said the location was perfect for them.

“I could walk ten minutes down to Australia Fair, five minutes to the pool. That’s our life,” she said.

“We just wanted to sit and relax and enjoy it.”

However five years on they still have no home of their own and are “living out of a suitcase”.

“We’ve lived everywhere since. We do house minding now, look after people’s dogs, do the house minding. If we haven’t got anything on we bludge on relatives and friends,” Mr Thomas said.

Adding salt to the wound, the unit the couple sold in 2019 has recently been sold again, for $500,000 more than they got for it.

The couple refused to agree to the higher price demanded by the Marine Quarter developer.

On December 15 they were sent another legal letter informing them the developer was terminating their contract on the basis that “proceeding with the development is not financially viable” – a scenario allowed for by a contract clause.

The Marine Quarter Oceanic tower under construction in Southport. Picture: Glenn Hampson.

LEGAL FIGHT

The developer has sought to refund the couple’s deposit but the couple have refused to accept it, instead hiring legal firm van de Graaff Lawyers to fight their case.

In letters to the developer’s lawyers, Principal Peter van de Graaff said statements that the development would not be financially viable if the couple didn’t pay more were at odds with construction updates sent to buyers, including one sent on November 14.

“This week the steel reinforcement is being laid on the 27th level of Oceanic Tower and the concrete pour is scheduled for this Friday, subject to weather conditions. The final level is scheduled to be poured before Christmas. We are all very excited to reach the top of the tower!”, the email to purchasers from BuildCap read.

“Internal works are progressing smoothly, with all trades working systematically from the ground up.”

Mr van de Graaff said there was “no suggestion of funding problems or other concerns” in BuildCap’s email.

He also contended that the clause relied on by BuildCap to end contracts dealt with termination of the development as a whole, not individual lots.

He said it was wrong for the developer’s lawyers to say buyers had only two options – to pay extra or agree to terminate their contracts.

“The buyer has the option to continue with the contract,” he stated. “This option was not put to the buyer.”

Stuart Biggs of Buildcap, developer of Marine Quarter Southport.

SECOND TOWER

Despite the claimed financial difficulties, BuildCap in August last year also advised purchasers it was “driving the planning” for construction of a second tower at the site, named the Scenic Tower, “with urgency”.

“Now that the Oceanic Tower contract is in place, BuildCap is able to advise that the Scenic Tower is expected to commence in the first quarter of 2024,” it stated.

In June it also said it would be launching “several projects” that had been “in the pipeline” in the 2023-24 financial year, including a 185-lot development in Morwell, Victoria.

The Bulletin sent a series of questions to BuildCap Managing Director Stuart Biggs regarding the issues raised in this article.

Mr Biggs said that due to ongoing discussions with Marine Quarter clientele, the company was unable to provide any further comment.

Speaking through tears, Mrs Thomas said she often finds herself getting “very upset” about the issue. “Everyone at the pool, they’re always saying, ‘poor Ronda’,” she said.

Mr Thomas vowed that he and his wife would continue to fight the developer’s attempted contract termination on the unit they hoped to retire to.

“We went up and had a look at it about a month and a half ago. They invited us all to have a look, before they hit us for the 120,” he said.

“They took us to the unit we bought. I walked in and they were finishing off the plasterboard, and they had to lay the tiles. It’s virtually finished.

“They’re just chasing the extra money.

“And I thought, rather than pay out what I don’t believe in, I’ll fight them. I’ll put that money towards fighting them.”

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