Buying apartments off plan was a licence to print money during the property boom and both professional and novice investors piled into the market.

Put down a deposit and six months later your yet-to-be-built flat was worth £10,000 more than you agreed to pay.
You could then sell your contract onto another investor and pocket the profit - a process known as flipping - or you could wait until the flat was built and sell on for even more money.

Negative equity

But profiting from off plan relies on a rising market and the downturn has resulted in dire consequences for some investors.
Those who bought a couple of years ago having paid a ten per cent deposit are now being forced to complete the deal, find the balance and take possession of their flat.
They are paying up for an apartment worth less than they agreed to pay for it and are in negative equity.

Mortgage nightmare

Many also need a mortgage and are struggling to find a buy-to-let deal. During the boom banks and specialist lenders were offering 85 per cent mortgages, but will now only lend 70-75 per cent of a property's value, if they will lend at all.
So even if you manage to find a mortgage for a flat costing £150,000, you may find yourself with a £20,000 shortfall.
Walking away from the deal is not an option and if you don't pay up you may find the bailiffs at your door.

Deposits held

Those who have bought off plan on one of the many developments that have been  mothballed are wishing they'd read the small print on their contracts.
The majority of contracts are open ended, which means the developer can hold onto the deposit  - that's £15,000 on a £150,000 property - for as long as he or she likes even if it takes years for the scheme to get out of the ground.

Small print

Property Lawyer John Robson blames gold rush fever for the off plan problems.
He believes that investors and sometimes their lawyers didn't check small print or draw up contingency plans.
John, residential conveyancing manager at Leeds-based Ford and Warren Solicitors, is well known for his cautious approach.
He says: "People got carried away and even if we flagged up potential pitfalls they didn't care.
"They were cocksure and in a buoyant market there is rarely a problem because prices are rising and developers are building as fast as they can.
"Even if buyers were worried and wanted to change the contract, developers weren't willing to do that.
"It was accept it or don't buy at all. Personally, I wouldn't have signed.
"Contracts are weighted very heavily in favour of developers and against the purchaser."

Legally bound

John says that while you can walk away from initial reservation fee - usually around £1,000 - you are legally bound once you have paid the deposit and signed the contract.
He adds: "Some developers are being flexible and are releasing the buyer from the contract but they are keeping the deposit.
"As for those completing now and finding themselves with a property worth less than they agreed to buy it for, they have no redress."
They can ask the developer to reduce the price and with John's help, one client has successfully done this, but it is down to goodwill on the seller's part.

Long term hope

While some investors are undoubtedly suffering, they can take heart from the experience of Chris Town, a landlord and director of the Residential Landlords Association.
He says: "I feel sorry for those who have been caught out and I don't blame them because it's easy to get carried along with the herd and let your defences down.
"But if they can struggle on for three or four years and prop up their investment, things will turn round.
"I experienced the property recession in the early 1990's and it was tough, but the market improved and I learned lessons like making sure my gearing was 50 or 60 per cent.
"At the moment the train's stuck and there are people who are trapped on it, but it will start moving eventually.
"The good times will roll again."