This Builder is going broke

This Builder is going broke - who’s next?

Рет қаралды 92,474

Күн бұрын

In this episode of Property Now, Ed looks into the high-profile collapse of the Du Val group, analysing the financial missteps and regulatory oversights that led to their downfall.
This video not only sheds light on Du Val's struggles but also speculates on other developers who might face similar fates.
Ed's analysis will help you understand the complexities of the property development industry and identify red flags in potential investments.
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Пікірлер: 101

@Richard_AKL 5 ай бұрын

Seeing him cruising around in the Rolls and the bling on his hand was a massive red flag.

@Peter-tk6rm 5 ай бұрын

My Jewish father was always apprehensive around Flashy people. He always believed true wealth is hidden.

@jemma_19988 Ай бұрын

Mind you there a lot of wealthy jews who like to display wealth Seinfeld and his big porsche collection etc

@tooxtalivai0690 Ай бұрын

Yeah gold teeth

@mtbers 14 күн бұрын

Loser was simply a scam artist.

@Chris.Davies 6 ай бұрын

Rolls Royce and a jet says everything you need to know. Yeah?

@HighMaintenancePS 5 ай бұрын

💯

@keithcragg6474 Ай бұрын

They borrow on the contract signed by the client, so they sell off the plan at $500,000 x 100 units = $50,000,000. They then build the units at $300,000 x 100 units = $30,000,000 borrow 80% of the contract amount approximately $40,000,000 using deposits as their deposits. Then they run out and buy penthouses, lambo’s, jets, boats because they have the NZ TAXATION looking at how much money they have and they forget that there is a &30,000,000 building still to be built. Once it all starts going to shit, it’s every man for himself and if you have been called into the office and got a promotion to a director of the company, well you are about to be their bucket that all the shit is going to get dumped into

@bjornnz2367 5 ай бұрын

They were living like kings on other peoples money. Looks like it could be more than a company loss, investor losses and home buyers losses. Jail time perhaps?

@cs5982-n7j 5 ай бұрын

My father was a stock market investor since the 1950's in the States, and that's the same term he always used: OPM (Other Peoples' Money) He also said (quite rightly) that developers develop the land like a pimp develops your daughter.

@emc59789 5 ай бұрын

If so it’ll be a slap on the wrist unfortunately

@lisakelly5438 5 ай бұрын

I.have met both they were the kindest most down to earth couple. 😢

@fionamckinnon1167 Ай бұрын

@@lisakelly5438 sure they were ripping off there investors!

@nztttttt 5 ай бұрын

Williams Corporation is next

@siiiiiiiiiimo 5 ай бұрын

They rent out their private yacht now, that may keep the lights on

@loveytubal9738 5 ай бұрын

Are they in trouble as well? 😮

@zeroyon4562 5 ай бұрын

Hopefully.

@MrWillt100 5 ай бұрын

Yep just waiting to hear how much they owe for the jet flights that they now cannot afford.

@Ricanae205 Ай бұрын

Watch the space 👀

@steveabplanalp9607 5 ай бұрын

I know someone who bought off the plan from Duval. The property remains unfinished. The sunset clause kicks in soon so hopefully the can recover their deposit in full.

@craignalder1850 5 ай бұрын

NEVER BUY OFF THE PLAN FROM ANYONE.

@jasonbartle7950 5 ай бұрын

This will be their second time bankrupt. Most of their consents were earlier than 2020 werent they? We were looking at buying from them BUT they seemed to hve too much going on for the size of Auckland. Rolls Royces and private jets a few years after clearing the bankruptcy screamed "Im gonna do it again" so we bailed on them. Close call.

@HighMaintenancePS 5 ай бұрын

Good man. So obvious isn’t it!!

@G7FX_REVIEWS 5 ай бұрын

It all comes down to education as to why these developers get into trouble. Many of them don't know all the ins & outs of developing new homes to keep risk low. Even a builder with 4 years carpentry experience doesn't know the business side of developing new houses.

@edmcknight1375 5 ай бұрын

Think there's a lot of truth in that. In the building boom a lot of inexperienced developers got into the game ... not knowing how it's played.

@G7FX_REVIEWS 5 ай бұрын

@@edmcknight1375 I'm assuming some of them were one man band builders in which they know how to build a house with hammer and nails but have a lack or no experience in Project Management.

@Aupm-1 5 ай бұрын

Duval group Money are in Singapore there was an article in NZ Herold not long ago

@peterwakemanfreespeech 5 ай бұрын

When you Buy property does the agent still gets paid when home is not done and deal ends with someone going broke?

@edmcknight1375 5 ай бұрын

Generally not in my experience. Often real estate agents get paid once the property is finished and the buyer pays for it. But some will negotiate and get paid up front (or staggered as the property gets more and more built)

@DavidParker-sx5ps 5 ай бұрын

@@edmcknight1375 Usually the Agent gets 50% of the Fee when the buyer goes Unconditional and the Deposit is paid and the remaining 50% on Settlement

@DavidParker-sx5ps 5 ай бұрын

The Agent wont get paid if the property is not settled. Most of the time Agents will get half the Fee (usually around 2.5% flat Fee) once the buyer has paid their deposit and gone Unconditional. Then the balance when the Buyer settles. However if the Buyer doesnt settle then its not uncommon for the Developer to claw back the original 50% paid. The first and last half of the Fee is usually paid by the Solicitor who would act as Stakeholder for the Developer. The Solicitor acting as Stakeholder avoids GST being triggered for the Developer. And they would pay that as the Buyers settle. Well that's my experience and I've been involved in the Development of almost 5000 Apartments and Terrace houses and over 1000 sections...

@craignalder1850 5 ай бұрын

I bet Ray White is involved in this debacle. And if they are, they'll screw people over without blinking an eye

@Freedom-h1q 5 ай бұрын

It's not just education, some of the more experienced developers/builders around have gone tits up. Poor design, poor consultants/ main contractor/ subcontractor. Shortage/supply of materials. H&S ( Fatality). Poor financial management. Heavy demand on industry resources. Disputes. The Developer doesn't normally incure full sale complete cost, it is incremental.But additional to incurring interest rates there may be LDs per home owner charged. The tender market in the building game is a race to the bottom anyhu. There are so many varieties. It's better sometimes to be lucky than good.

@modfus 5 ай бұрын

We've seen this play out over and over in New Zealand. Kiwis are so unsophisticated and easily impressed by displays of conspicuous consumption. We all love rags-to-riches success stories but far too many big-ego get-rich-quick types (like Kenyon Clarke) are more focused on their tacky lifestyles of fake luxury than actually building a solid business with strong foundations. People who come from nowhere and suddenly are flashing their new wealth all over the place starts alarm bells ringing for me.

@smeagol7247 Ай бұрын

Your right they were offering investors 10 Percent quarterly How does that not sound like a scam or a Ponzi Scheme. Considering that In the NZX The highest dividend stock currently in NZ is 5.7 annual yield per year. The highest yield bonds 6.79 percent annual yield. A 40 percent Annual return on investment Peter lynch when he was at Fidelity Investment's Magellan Fund was delivering a 30 percent annual return. So if you believe your going to make more then 10 percent annual returns then one of the worlds most successful hedge funds then your dreaming.

@d.a2500 Ай бұрын

I’m a Kiwi living in convict land and same here.There is an apartment block in Sydney which was not built well, the poor owners can’t live in those homes but still have to pay mortgages body corp.The builder has gone bust shock horror, and there are many many more stories like this one. Who the hell buys off a plan.

@MrWillt100 5 ай бұрын

They are a couple of scam artists.

@jasperhorace7147 Ай бұрын

And the generation brought up on social media fell for it big time. People need to learn that probably about 80% of social media posts are either completely false or deliberately misleading. Remember if it sounds to good to be true, then most likely it is too good to be true.

@zinzander2978 5 ай бұрын

Honestly people who invest in these organisations funds really need to check themselves. They are returning less than second/third tier lenders charge in interest with no mortgage security and minimal diversification and extremely high risk

@ryanm2525 Ай бұрын

Well done!

@patrickvanrinsvelt4466 5 ай бұрын

Shouldn't this guy be arrested on suspicion of fraud and held until the investigation concludes?

@iansmith9706 Ай бұрын

If found to be fraudulent send them both of them to prison ,

@TheoRautenbach-cp5iv 5 ай бұрын

You go wrong by flying in a private jet, driving a rolls royce and imagining you are a character in Billions.

@stephenpaul4258 5 ай бұрын

They cant control themselves once the real money comes in. No fiscal mgt skills or considering mkt downturns

@KanoKaiji 5 ай бұрын

Where is the list of good developer?

@opes_partners 5 ай бұрын

here you go: www.opespartners.co.nz/developers/developers-opes-recommends

@SHANONisRegenerate 5 ай бұрын

This is a conflict of interest man. Opes get a kickback when buying from your recommended developers. Whos to say the redlist isnt made up of some developers that didnt give Opes enough %

@Phil-oj5nr 5 ай бұрын

Is that fact, or speculation?

@SPC11223 5 ай бұрын

It is a fact their wealth advisory business secures a large commission when you buy a home they are promoting. A person would have to be very naive to assume their recommendations are not biased to secure this revenue. If you buy off a developer they don’t recommend the opportunity for a sales commission, mortgage broker referral and property management referral is lost. At a time when sales are few are far between the bias will only increase as the market scraps over the few active buyers that are out there. Have a look at their website they have a lot of mouths to feed and they need buyers to purchase their listings to do that. Provide free advice to secure a funnel of potential buyers. Send the buyer to developers who pay a commission for sales. As part of the sale offer mortgage broker and property management service to extract maximum value. It’s a big business under the guise of free advice No doubt a lot of what is said is genuine but take it with a huge grain of salt!

@zhaxi161 5 ай бұрын

@@Phil-oj5nrOpes is a property sale company that needs to sell new builds to make a living. So what do you think 😂

@edmcknight1375 5 ай бұрын

You are absolutely correct. We keep the lights on by recommending New Build properties. So it's good you bring this up. Couple of things we do to try and manage that conflict. 1) We charge a flat fee. So every developer pays the same price. That way it's not "Who's the highest bidder?" It's "Who's got the best properties?" 2) We try and evidence why we do or don't like a developer's properties. So on that red list there are links to reviews of some of the bigger developers. That way you can see why we do or don't like someone's properties.

@petercreagh8797 5 ай бұрын

If creditors did not give so much credit they would not lose so much when developers go bust. They need to operate like councils, phone and power companies. This happens time and time again and creditors never learn.

@paulleighton7078 Ай бұрын

Like councils 😂😂 ! Councils are all in huge debt and are insolvent !

@que-tangclan 5 ай бұрын

Where is your OCR dropping video and what it means for house prices?

@Stamp2023 5 ай бұрын

Consents submitted does not equate to the amount of properties you build. One consent could be for 4 townhouses.

@tondematongo32 Ай бұрын

Private jet and rolls Royce should have a red flag

@adrianmotet5083 5 ай бұрын

What was with the police confiscating their firearms? Is that normal when the FMA does a raid?

@bandicoot2004 5 ай бұрын

Maybe they were valuable Antique Firearms? Like in that movie “Lock, Stock and Two Smoking Barrels”.

@finnthinkin7695 5 ай бұрын

They are gonna hold anything, of value that was purchased, tied, or under/ or belongs to the business. And it's not hard for the FMA to raid out all the information they need to take all, accordingly.

@colincameron5219 5 ай бұрын

Yes matter of course they see if they have a gun license then they automatically take them

@laurence7426 5 ай бұрын

Yes anything they are in possession of including rings of there fingers if they are real .

@haydenbrown8421 5 ай бұрын

Police are only interested in confiscating the guns, not interested in the money. Might be the only asset they actually own if the truth be known.

@Peter-kk6rg 5 ай бұрын

New Zealand and Australia are the most expensive housing in the world. And most overseas investors have red flagged both countries.

@kahumanu5022 2 ай бұрын

Point?🤔

@smeagol7247 Ай бұрын

@@kahumanu5022 I haven't looked at the data but if true would mean overseas investors see our real estate market as a massive bubble built off exclusively cheap loans issued by the reserve bank in 2020.

@blusheen378 5 ай бұрын

There's more substance in the down to earth Kiwi developer than the one shouting, slinging the big talk; displaying all the massive expenses of jets, helicopters, Rolls Royce etc. Many can't see that the couple doesn't have the solid base. It is difficult in this modern era of social media, instagram etc to separate the wheat from the chaff. We get sucked in. Couple of hundred thousand $ down the toilet, almost impossible to get any back. For many, lesson never learnt.

@nicholasdale2910 22 күн бұрын

At some point it went from earning and generating wealth to just spending other peoples money to live lavishly. What a pair of tools.

@johnfrench741 5 ай бұрын

All flash no cash happens every time.

@petedavies408 5 ай бұрын

If it sounds to good to be true it probably is…..

@smeagol7247 Ай бұрын

yeah they were offering A 40 percent Annual return on investment Peter lynch when he was at Fidelity Investment's Magellan Fund was delivering a 30 percent annual return. So if you believe your going to make more then 10 percent annual returns then one of the worlds most successful hedge funds then your dreaming.

@Peter-kk6rg 5 ай бұрын

It's a house of cards.