Investors Club reaches confidential resolution with former clients over Gold Coast apartment purchase
Tuesday, July 3, 2012/
Lawyers representing WA couple Hugh Wilson and Marilee Coombs have confirmed that they have resolved their dispute with Brisbane-based The Investors Club over a Gold Coast apartment they purchased with the help of the property investment club in 2007.
The dispute was due to be heard in a Perth court later this year after two previous attempts at mediation between the parties failed.
A spokesperson for law firm Slater and Gordon, which represented Wilson and Coombs, says the terms of the resolution are confidential.
Coombs and Wilson launched a claim against The Investors Club and two staff members in August last year alleging they had been advised to purchase a three-bedroom bushland house in Highland Park on the Gold Coast that they later claim was grossly overpriced.
The property reputedly cost $630,000 when the couple bought it in 2007, though official records show a public sale price of $905,000.
The Investors Club also negotiated a $60,000 discount for the couple on the sale price.
After the couple purchased the property they say an independent valuation revealed the unit was worth as little as $450,000 at the time of the deal.
The townhouse was sold by Matthew Mariconte, principal of Champions Property Sales, for $391,000 on October 24 last year.
The Investors Club denied the allegations and blamed the fall in value of the townhouse on the effects of the GFC.
Founder of The Investors Club Kevin Young told the Australian Financial Review it had found an “amicable solution” to its dispute with Wilson and Coombs.
As part of the resolution to proceedings Wilson and Coombs issued a statement to The Investors Club.
The statement reads: “We acknowledge that at all times The Investors Club were honest and genuine in their dealings with us.”
This article first appeared on Property Observer.