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A couple from Western Australia’s south-west is suing a Queensland based property investment company after they were convinced to purchase a unit that they later discovered was grossly over priced.
National law firm Slater and Gordon has begun legal action in the Federal Court in Perth against The Investors Club (TIC), and two employees, Bryn Campbell and Brian Walters. The claims allege the company and the two staff members engaged in misleading and deceptive conduct when they advised the Denmark couple to purchase the property on the Gold Coast in 2007.
Slater and Gordon Lawyer Carita Kazakoff said Hugh Wilson and Marilee Coombs were told by TIC that the “Kirribilli Heights” unit in Highland Park was worth up to one million dollars, and they would make an instant profit of $300,000 on settlement. However, after the couple purchased the property an independent valuation revealed the unit was worth as little as $450,000 at the time of the deal.
“My clients, who are in their late 50’s and 60’s, wanted a secure investment for their future. They trusted the professional advice given to them by The Investors Club. However, after purchasing the Gold Coast property they are now hundreds of thousands of dollars out of pocket, and at risk of losing their family home.
“The Investors Club and its two staff members ought to have known that the purchase price of the property was well above market value, and that promises of an instant profit, and appreciation in value of $60,000 in the first year were unreasonable,” she said.
Ms Coombs said she relied on the advice and assurances of The Investors Club, and Mr Campbell and Mr Walters that this was a sound investment.
“This has been a really difficult time for Hugh and I. We were advised that this was a good investment for our retirement. But now our financial future is uncertain and we’ve had to put our plans on hold.”
The couple is seeking damages for financial losses, interest and costs associated with the purchase.
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