A dispute over the installation of drainage works at the 70-lot subdivision at Boolaroo has seen the land buyers stuck in a costly quagmire of uncertainty and frustration for months.

Now the purchasers have learnt they have to wait even longer. As the pipe dispute continues in the courts, the developer, Bunderra Holdings, has extended the sunset clause, the date for the project to be finished, to July 1. Not that those waiting to build are hanging their hopes on that date, since this is not the first time a deadline on the development has had to be pushed out.    

“We’ve been patient and we’ve waited a long time,” said Rod Allan. “Something’s got to be done.”

Mr Allan and his wife bought a block of land in October 2015 for $250,000.

“I think we bought the last block, and we thought we were lucky; we don’t think that now.”

At the time of paying a deposit on the land, the Allans also secured a home loan and signed a contract with a builder. Work was meant to begin in July last year, and the Allans expected to be in their home with their three children by February. They were excited, because this was to be their first home. Instead, they’re having to continue paying $450 a week in rent. 

In the time lost, the building costs have already risen by $8000, and the Allans have to reapply for a loan, as the original bank agreement has expired.

“The loan amount is going up, and the mortgage insurance is going up as well,” Mr Allan said.

He said even the loan process was being delayed, because the valuer couldn’t access the land, as the subdivision was fenced off. 

Like the Allans, the Griffin family have felt their first-home ownership excitement sour.

“The more I stress about it, it’s not going to make a difference,” Nicole Griffin said.

Nicole Griffin and her husband, James, bought a block in September 2015 for $250,000. To save for their home, Mr Griffin has been flying in and out of Western Australia, working in the construction industry. The Griffins expected they would be moving into their new home by last Christmas. Instead, they are still renting, paying $335 a week.

“I’d rather that be coming off our block of land or my own home,” Mrs Griffin  said. What’s more, Nicole and James Griffin have been told by their builder that due to the delay, the cost of their planned home has increased by $20,000.

“So that means we need more of a deposit, and we have to keep saving now,” Mrs Griffin said. “The longer it takes, the more things change with financial lending and building products’ [costs].”

The subdivision is on land that was once owned by Pasminco as part of its smelter site. A representative of Bunderra Holdings, which is part of the Stevens Group, told the subdivision’s selling agent, Kapalua Advisory, that it had finished construction and council had issued a certificate of satisfactory completion, when legal proceedings over the pipe began. The drainage works were to help control stormwater runoff from land retained by Pasminco on the other side of Main Road.

Pasminco took the matter to the Land and Environment Court, and late last year, the judge ordered Bunderra to install the drainage works. Lake Macquarie City Council could not issue the subdivision certificate until the work was done.

Bunderra is appealing the court decision. The developer has indicated to Kapalua that it is hoping the appeal will be heard in April or May.

If the appeal is successful, Bunderra hopes the subdivision certificate will be issued immediately. If it is not successful, the developer will have to undertake the work, which it believes will take several months. 

Richard Stanton, the principal and project director of Kapalua Advisory, said felt and understood the purchasers’ frustration.

“My own daughter bought in there, so I feel it on a personal level as well,” Mr Stanton said.

Asked when land buyers could expect certainty about when they could start building, Mr Stanton replied he was “at a loss to answer”. 

“I’d like that certainty myself as a businessperson,” he said. “We’ve invested close to three and a half years in this project. Everyone wants it to happen, no one more than the Stevens Group. They want it resolved as much as anyone.” Newcastle Herald contacted the Stevens Group for comment but had not yet received a reply.

Tony Farrell, Director City Strategy for Lake Macquarie City Council, said the council had approved the development and would like to see it proceed as soon as possible.

“Council is subject to court orders that prevent it from taking any action to progress the matter until works are undertaken or one party or the other convinces the court to change its position,” Mr Farrell said.

“Staff have had direct dealings with many of those who have paid deposits and were hoping to be in their new homes by now. They are, of course, sympathetic to the impact the delays are having on people’s lives.” 

Alex Whitall and her partner put down a deposit on a $220,000 block in early 2015. They intended to build their home then start a family. Ms Whitall and her partner are expecting their second child in May. The original contract to build their home was for $229,000. Because of the delays, the cost has increased by $30,000 to $259,000. And Ms Whitall expects the price will climb as more time passes.

“I don’t think we’re going to be in [the home] in the next 12 months,” she said. “I’d say it’s two years’ away. I’m thinking of a worst case scenario, and that way I won’t be too disappointed.”

Richard Stanton said two land purchasers had asked for, and been given, a release from their contract. He said while people were frustrated by the wait, many knew they were sitting on land that would appreciate in value in time, but as yet “they just can’t get on to it”. 

“One day it will be resolved, I just can’t give a date when it will be,” Mr Stanton said.