This Builder is going broke - who’s next?

[@Richard_AKL]

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

[@Chris.Davies]

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

[@HighMaintenancePS]

💯

[@nztttttt]

Williams Corporation is next

[@siiiiiiiiiimo]

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

[@loveytubal9738]

Are they in trouble as well? 😮

[@zeroyon4562]

Hopefully.

[@MrWillt100]

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

[@Peter-tk6rm]

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

[@bjornnz2367]

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]

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]

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

[@lisakelly5438]

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

[@steveabplanalp9607]

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]

NEVER BUY OFF THE PLAN FROM ANYONE.

[@jasonbartle7950]

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]

Good man. So obvious isn’t it!!

[@G7FX_REVIEWS]

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]

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]

@@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.

[@Freedom-h1q]

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.

[@zinzander2978]

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

[@stephenpaul4258]

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

[@petercreagh8797]

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.

[@modfus]

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. I must confess I generally have apprehensions about nouveau riche business people - people who come from nowhere and suddenly are flashing their new wealth all over the place sends alarm bells ringing for me. Maybe I'm a snob but I do like to know what school they went to and what their social circles are - as it is an indication of who you're dealing with.

[@peterwakemanfreespeech]

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

[@edmcknight1375]

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]

@@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]

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]

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

[@MrWillt100]

They are a couple of scam artists.

[@Peter-kk6rg]

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

[@Aupm-1]

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

[@SHANONisRegenerate]

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]

Is that fact, or speculation?

[@SPC11223]

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]

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

[@edmcknight1375]

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.

[@Stamp2023]

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

[@que-tangclan]

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

[@blusheen378]

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.

[@TheoRautenbach-cp5iv]

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

[@patrickvanrinsvelt4466]

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

[@KanoKaiji]

Where is the list of good developer?

[@opes_partners]

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

[@adrianmotet5083]

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

[@bandicoot2004]

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

[@finnthinkin7695]

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]

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

[@laurence7426]

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

[@haydenbrown8421]

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.

[@johnfrench741]

All flash no cash happens every time.

[@petedavies408]

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

[@hirainawhaanga6253]

It will have a domino effect.

[@Peter-kk6rg]

It's a house of cards.

[@jfb2811]

Williams corp next

[@new.Creation.In.Christ]

Sounds Like Watchman Capital another bunch of crooks..

[@Maxximoto1]

These guys are scam artists that use investors money as their own personal bank account. They should be in jail.

[@timetraveller885]

Bullshit, Builders get paid over Stages in the Development!!!

[@NaenaeBoy]

He's not a builder. He's a developer

[@shaun1129]

Ponzi Scheme

[@queenslander954]

Well there’s the reason , should be in a truck not a plane .. needs to get over himself.

[@trellgold6998]

He wont go broke hes been bust before and made it back up

[@trellgold6998]

And isn't the government bailing them out?

[@EliapoAfamasaga]

Living 🎉 the ..... Lie , who are you 🩴

[@prancer4743]

OMG🏃🏃🏃🏃🏃🏃🏃🫣🤔😩

[@MikeBowles-w8u]

try hard wanna be loser

[@DevouringWhiteSpider]

Beware of egotism.