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The Government has put residential property developer Du Val Group into statutory management on the recommendation of the Financial Markets Authority (FMA), Commerce and Consumer Affairs Minister Andrew Bayly says.
"The Government has placed companies associated with Du Val Group, a developer of large-scale residential property projects in Auckland, into statutory management," says Bayly.
"Du Val Group has recently gone into interim receivership, leaving significant liabilities. The situation is complex and of such a scale that immediate intervention is required to prevent broader harm."
"Statutory management is the option of last resort used to deal with complex corporate failure where ordinary insolvency law is inadequate. It is intended to protect investors and creditors from further losses, and to enable the orderly administration of a company's affairs," Bayly says.
The FMA says it has "ongoing investigations" into the Du Val group.
"The Corporations Act provides remedies to deal with complex corporate failures and is most appropriate where a company has, or may have been operating fraudulently or recklessly or, alternatively, where the ordinary law is inadequate to deal with an orderly wind up of the companies. In this case, the FMA considers both provisions apply," the FMA says.
The full list of Du Val entities placed in statutory management is here.
A previous entity placed in statutory management was South Canterbury Finance.
Here's Bayly's statement.
Du Val Group companies placed into statutory management
The Government has placed companies associated with Du Val Group, a developer of large-scale residential property projects in Auckland, into statutory management, Commerce and Consumer Affairs Minister Andrew Bayly says.
“Du Val Group has recently gone into interim receivership, leaving significant liabilities. The situation is complex and of such a scale that immediate intervention is required to prevent broader harm.
“Statutory management is the option of last resort used to deal with complex corporate failure where ordinary insolvency law is inadequate. It is intended to protect investors and creditors from further losses, and to enable the orderly administration of a company's affairs.
“Du Val Group is made up of about 70 entities, including 46 subsidiaries, and 20 special purpose vehicle limited partnerships. There are between 120–150 investors, home buyers and commercial lenders tangled up and given the number people involved it’s important we ensure the process is orderly and fair.
“By placing Du Val into statutory management, all current insolvency processes are suspended, enabling the affairs to be dealt with by one team of people, rather than multiple insolvency processes unfolding simultaneously.
“The decision to put the companies into statutory management follows a recommendation by the Financial Markets Authority (FMA). The FMA made its recommendation based on its ongoing investigations and following a report from the Court-appointed interim receivers.
“Following Cabinet’s approval, the Governor-General has made an Order in Council. This decision is effective from today.”
The order applies to four core Du Val Corporations and 20 associated persons (all limited partnerships), along with 46 subsidiaries. One subsidiary is excluded as it is 50 per cent owned by a third party and operates independently of the Du Val Group.
The Government has appointed John Fisk, Stephen White and Lara Bennett of Price Waterhouse Cooper (PwC) New Zealand as statutory managers. This follows their recent appointment by the High Court as interim receivers for the Du Val Group.
- The order can be found here.
- The full list of entities involved can be found on the PwC website.
- Du Val investors and creditors with questions on the statutory management process should contact PwC New Zealand at nz_duval@pwc.com.
And here's a statement from the FMA.
FMA statement on Statutory Management for Du Val corporations
The Financial Markets Authority – Te Mana Tātai Hokohoko – today confirmed that the Governor-General, on the advice of the Minister of Commerce and Consumer Affairs given in accordance with a recommendation from the FMA, declared a number of entities within the Du Val group be placed in statutory management under the terms of the Corporations (Investigation and Management) Act 1989 (the Corporations Act).
Statutory management for these entities was announced by the Minister today, effective immediately. John Fisk, Stephen White and Lara Bennett of PwC New Zealand, who were appointed as interim receivers on 2 August 2024, have been appointed as the Statutory Managers.
The Corporations Act provides remedies to deal with complex corporate failures and is most appropriate where a company has, or may have been operating fraudulently or recklessly or, alternatively, where the ordinary law is inadequate to deal with an orderly wind up of the companies. In this case, the FMA considers both provisions apply.
The FMA’s recommendation was based both on its own investigations and a report from the Court- appointed interim receivers, PwC New Zealand (Report). The Report is currently subject to Court orders restricting its publication.
The FMA considers that the conditions under the Corporations Act have been met, and is satisfied that statutory management is the most appropriate available option for each of the Du Val group corporations to which it has been applied, for the purpose of:
· limiting or preventing the risk of further deterioration of the financial affairs of those corporations;
· limiting or preventing the carrying out, or the effects of, any fraudulent act or activity;
· preserving the interests of their creditors or beneficiaries or the public interest; and
· enabling the affairs of the Du Val group corporations to be managed in a more orderly way.
The FMA has ongoing investigations into the Du Val group.
Du Val investors and creditors with questions on the statutory management process should contact PwC New Zealand at nz_duval@pwc.com.
And here's PwC's statement.
Statutory managers appointed to Du Val group
At 18:00 on 21 August 2024, John Fisk, Stephen White and Lara Bennett of PwC New Zealand were appointed statutory managers of 70 entities associated with the Du Val property development group (“Du Val”). The statutory management suspends the Court-appointed interim receivership appointments that were made on 2 August 2024 for the majority of the Du Val group entities. A full list of the entities that are now in statutory management is attached to this release.
John Fisk, Partner, says, “We are keen to ensure construction works continue on the active construction projects Du Val has and that it is business as usual for the rental properties. Our initial focus will be to preserve and realise best value for all stakeholders. We will be communicating with all creditors and investors, and will be conducting a thorough investigation. We will provide creditors and investors with regular updates on the progress of the statutory management.”
Du Val is a developer of large-scale residential property projects in the Auckland area. The statutory management appointment was made following the submission of a report by PwC to the High Court. The initial receivers’ appointment was made by the High Court on application of the Financial Markets Authority (FMA) under the Financial Markets Conduct Act 2013.
Please direct any further enquiries regarding the appointment to the FMA.
Du Val investors and creditors with questions on the statutory management process should contact PwC New Zealand at nz_duval@pwc.com.
164 Comments
Bear with me. I’ve just got home from the pub, this evening I actually got kicked out (can’t have any fun these days. Minor punch up, no one seriously hurt). Anyway I hope you’re right Guy, the investors shouldn’t get anything. It’s Hanover all over again. Investors conned into getting on board with the “restructured” system. WTF? I understand that they found themselves between a rock and a hard place but did any stand up to these losers and say stick it up your arse?
Most of those investors don't understand what they invested in. They are pensioners who handed over their life savings in return for 10% interest and who think its just like a term deposit because thats how it was presented on the Facebook ad that sucked them in. Most of them dont have any money to go hire lawyers, let alone even understand that they could go hire lawyers. The FMA should have shut this finance scam down a long time ago, but they did nothing other than send a mildly worded letter to Du Val (and the others).
Du Val Group is made up of about 70 entities, including 46 subsidiaries, and 20 special purpose vehicle limited partnerships. There are between 120–150 investors
Not so many investors and would this not suggest larger players as opposed to pensioners handing over life savings.
Wonder what the make up is?
Limited liability company = Govt will go easy on ‘em, otherwise no one will ever start a business again.
Of course, there needs to be some stern hand-smacking, to appease the investors and stop them from burning tyres outside parliament. This is how the world works. The rich get richer, even when they fail.
They're not rich investors though. They are small investors who got sucked in by Facebook ads and have invested their life savings, usually pensioners who gave them the proceeds of sale from their house. The FMA knew that and still did nothing about it. As a result other companies like Williams Corp are still taking the life savings off old people who are not "wholesale investors" but retail investors with no clue as to what they are doing.
Personal responsibility. No investment is risk free. Just like many on here say about FHB that got suckered into buying at the peak in 2021, ironically probably from aforementioned pensioners.
People should do their homework, and these pensioners have had a life time to understand finance.
"these pensioners have had a life time to understand finance."
Each person gets to choose what they do with their time. They get to choose their own set of priorities and goals.
Many people choose their hobbies for their free time - watching tv entertainment, watching sports, gardening, travel, dining out, going to the cinema / theatre, sleeping in, playing video games, knitting, consuming alcohol at the pub, etc.
Every person has 24 hours in a day.
For their own reasons, most people don’t choose to get financially literate, and so they stay financially illiterate and make financial choices that can lead to outcomes that are undesirable.
Financial illiterates pay a high price for their financial illiteracy.
Some elderly relatives choose to spend their time socialising with friends, leisure activities, and watching tv and continue to be financially illiterate.
Choosing to spend an hour a week over a lifetime to get financially literate can make a huge difference between losing their entire life savings on a high risk investment and risking their entire financial future or maintaining their future financial security.
Any elderly person taking notice would have heard about the losses by depositors in the finance companies in the 2009 - 2010 period and learnt lessons. Many people didn't take notice to learn the lessons. "Those who fail to learn the lessons from history are doomed to repeat them"
For investment novices, on any investment:
When in doubt, keep your investment small or keep your money out.
CAVEAT EMPTOR - the road to financial security is paved with potholes and landmines.
Why would Govt go easy on them? Because Govt is the biggest “business” of them all, and it needs smaller businesses like DV to prop up the Ponzi.
Don’t believe me that Govt is a Ponzi? Well I’ve been paying a large chunk of my earnings to them all my working life and I’m not seeing much investment in return!
I wonder how many people Googled Kenyon Clarke before investing. The article below from 2009 says he stripped the chattels including door handles from the house he owned with his mother before it went to mortgagee auction, says a lot about the guy. Then there's the $50 million owed to the Bank of Scotland ....
https://www.stuff.co.nz/waikato-times/business/3142399/Developers-luxury-home-in-forced-sale
Watch the video before it's taken down
Less b.s than Wingnut, and only half as dodgy as Chat-TTP...
Is he Yvil?
Omg I can't wait for their reality show 'The Property Developers', I'd watch season 2 to see the downfall 🙃 https://www.oaiaroad.com/shows/thepropertydevelopers
You'd think they would of deleted this sh** by now... imagine not being paid by his company and seeing this BS.
Haha looks all weights no speed work!
https://www.youtube.com/shorts/lTUohD8z95s
hope that was not you - Frank
Is he Yvil?
That's quite funny. Absolute state of the guy, and people bought into that. He's a living breathing cliche, a caricature of a real estate spiv.
Let's hope he's back soon with his new company, Du Phoenix anyone? I'm so invested now, he has to complete the tv series.
Very slick! It's all cut-shots of helicopters, heli skiing, luxury cars, high-rise buildings, fancy looking awards ceremonies etc etc. Straight outta the 1980s.
If I was a young-un studying video production as a career there are certainly a few tricks you can learn from that video.
Jailtime?
The Corporations Act provides remedies to deal with complex corporate failures and is most appropriate where a company has, or may have been operating fraudulently or recklessly or, alternatively, where the ordinary law is inadequate to deal with an orderly wind up of the companies. In this case, the FMA considers both provisions apply.
Jimbo - have a listen to the NBR podcast - only 24 mins long - gives you a good insight
It has the potential to be a B grade crime drama on Netflix
https://open.spotify.com/episode/2DV39VKLOtnki2NnOpW8Lr?si=d21a87ac8658…
This episode ‘The Du Val story’, is an in-depth account of how NBR broke the news the Financial Markets Authority was moving on the high-profile property development group with interim receivership orders, the full background of what lead up to that point, and a look at what happens next as disgruntled investors lawyer up.
The problem with living this type of life is you may cross the wrong person.... you will cross many, but the wrong one will be waiting for you one night, and all they find is a burnt out car on a rural road, full of bullets. There are some that have gone home alive to China after weighing up their options.
High end property development can be a very dirty game of double crossings and buyoffs. Often you are funding from people who are not subtle about wanting their money back.
While I did find the slightly less political shit-talkiness about Adern refreshing, there's also some behavioural issues there with promoting yourself as an advocate for kindness. That's something that should usually be innately observable, not something someone should promote.
It's like when someone tells you they're laid back, and easy going. Very often, they end up being highly particular, and assertive.
"High maintenance, me? But we established earlier I was laid back and easy going. I said so".
I mean this sort of comment can get back to his kids or family, regardless of what he's done being told that people on the internet are saying your dad's going to be .... is not good.
I don't dispute the reality of it, but this is a public forum and people who know him will be reading it. Let the system deal with him now.
This is a dark side of reality that exists whether the majority choose not to acknowledge its presence or not. I don't hold a lot of trust in many systems, and if we are discussing the criminal justice system, have a look at the track record of this in NZ for giving horrible crimes home detention on the basis of half-baked reasons.
If you listen to the podcast you will hear that Du Val were making Mom & Pop investors sign Wholesale Investor Declarations in their office... THEN walking them to a bank to get the money transferred.
Some people put their life savings in. Some over a $1m
Hats off to the NBR for investigating and taking it on.
Sadly, there will be many broken souls.
I doubt this is the last domino.
To be honest, this guy Kenyon looks like a classic con artist idiot.
Behind this whole charade of a business seems to be the rule that property always goes up in value.
This guy seems to have thought he can continue to borrow money of people, and prices would continue to go up forever and he would make enough excess to pay interest and investments back and keep a bunch of money for himself.
The planning that underpins this thing is based on a lie, and it has collapsed bigly. More so because he is a terrible operator.
He should go to jail, not because it has collapsed, but for the crimes that contributed to it, i.e. fraud, trading while insolvent etc.
In NZ idiots like this tend to come out of the woodwork at the end of a bubble and this guy in a classic. He wont be the last for this cycle.
How many have you built HM? I actually enjoy a bit of DIY, the whole thing sounds quite interesting, but that kind of scale requires a “special” kind of enthusiasm and risk aversion.
IMO the real criminals are the ones that fail in the good times, and there are plenty of those that got off free.
Not saying these guys are innocent, but if the crime is trading while insolvent, that seems like almost every builder to me.
And yet our entire property market, up until about 18 months ago has operated under the collective psyche that greed is good..and not just for a short period but for years (perhaps a few decade).
It was so ingrained (and still is with a few who have missed the change in sentiment) that everyone thiught it was completely normal. And anyone who suggested otherwise is/was from doomsville.
‘What do you mean I shouldn’t build up a property portfolio while we have a housing crisis where the next generation can’t afford to buy a home? My net worth (aka greed) is more important than the financial and social stability of the country as a whole’.
That's about as plausible an internal musing as
"I know I could spend x amount more on this item I feel I need for it to have been made by someone getting paid and looked after well, with semi decent environmental controls and standards, but I'd rather pay less for it so I can purchase other things also".
People's sphere of influence makes them oblivious or indifferent to the negative consequences on someone they don't know, it's not via deliberate contempt.
Ok let’s say for a minute that buying cage eggs for a year is on the same level as pocketing tens or hundreds of thousands of dollars from the housing market. You don’t see people calling themselves geniuses for saving a few hundred dollars on eggs by exploiting cage chickens.
EDIT: and encouraging everyone else to do the same
Caged chickens are probably have more clues than the people that invest in the likes of Du Val. I suspect most of the people that have flushed money away into this scam are either old people that don't know any better (an have been scammed), or younger people with no clues who have received inheritances and have no clue what to do with it, and so a 10% return ticked all the boxes. Now they will learn 10% of nothing is nothing.
I have sat on bank trading floors through so many crashes, its easy for me to see the cycles.
yet if you where a common NZers where is the crash, sure its reported here, but meanwhile cat up tree at the hearld, Mike Hoskings is not that vocal is he?
It will be all over by 2005 Xmas and no one is even going to want to talk about it at the family Xmas BBQ as EVERYONE was donkey deep in pooperty in some way. It will be a common shame no one wants to talk about, how could we have collectively have been so stupid. Do you think china house price crash is reported in Chinese media? why is ours not reporting it here? we are ment to have a free media compared to china? in time we all look back and think this was as stupid as the abuse in care debacle, how did we let it happen...
And yet here we are with Bank lending sitting at 70% in NZ to POOPERTY, which not enough can afford if enough need to sell.
as painter says , we are in a pickle. at least chris bishop is going to claim a win here.
I predict that when the Statutory Managers clean up this dogs breakfast there will be no money for contractors, no money for wages, no money for rent, no money for tax and no money to finish off ongoing projects. The only ones who will get paid will be the Govt appointed managers or receivers. Nice little earner if you can get it. It will take up to 10 years to tidy this mess up and regrettably a lot of good folk will go bust in the mean while. Criminal charges are likely to follow which means three meals a day, regular exercise and no worries will, no doubt, be enjoyed by a select few.
And every time the liquidator/SM auctions off some asset, about 15 people from their office will come along at $270 per hour to watch.
There is no new sin under the sun BigDaddy.
I love a good crash for the way the vultures pick the bones of the carcass under the summer sun.
This is a really sad end(?) to the story. A lot of investors are going to lose huge money. I really hope no suicides get linked to this failure because there will no doubt be those who have lost life savings, house sale proceeds, or been responsible for encouraging others to invest. I started seeing lots of marketing from DuVal around 2022 and had a bad feeling from the beginning. One of my old classmates from high school was on the sales team and he, like most of the large group of commission based staff, had no background in real estate or construction. It looked pretty clear from the beginning that this was a high pressure sales operation. Kenyon's constant story telling was a huge red flag; it seemed clear that the effort was going into raising funds (and pumping his image) rather than getting on with the core business. This receivership really should have got going back when they started threatening debt-equity swaps on their investors and proposing a Singaporean stock exchange listing. It gives me We Work vibes, though at least in that case it was one extremely rich investor who got burned.
Williams Corp must be sweating now. They took big $$ from people using the same model.
Yes. Williams will go down too. They have been selling off assets like crazy, houses, boats and cars. They are saying it’s because they should not have all this flash stuff in this environment….but the actual reason is probably quite different.
https://www.stuff.co.nz/nz-news/350236487/williams-corp-boss-explains-m…
Which one are you?
https://www.williamscorporationfunds.co.nz/
1) Are they up to date with their dividend payments to their unit holders?
2) Has anyone heard whether any redemption requests have been delayed or withheld by the fund?
Or do unit holders / investors have to find a buyer for their units? Might take a while to find a buyer and may need to sell at a huge discount.
Redemptions are being delayed. Originally a 6 month window for redemption requests, they extended it out to 12 months.
https://www.nzherald.co.nz/business/williams-corporations-1524m-investo…
Rubbish, totally sensible business!!
You invest so that pre sold property can be completed before settlements!
If would be crazy to allow investors to be able to pull money out willy nilly.
You can believe what you want but you clearly do not know how Williams Corporation operate.
I suggest you check it out fully before spouting incorrect ramblings!
CN, everything is totally up to date, no issues with payments to subbies, landowners or shareholders.
It is run totally different to Du Val, and anyone who gets the financials info every month will know this.
Investors are shareholders!
Redemptions are achieved by one years notice, which makes total business sense.
A very well run business that has many people with control of the finances and not the directors but then many on this site prefer to spout off when they have no idea what they are on about.
Most property being built is heavily presold before any building occurs.
You just can not compare Williams with Du Val, cheese and chalk!
"everything is totally up to date, no issues with payments to subbies, landowners or shareholders"
1) How do you know that is true and accurate? Where is the evidence? Without any evidence, it is just another unsubstantiated assertion by an anonymous commenter on the internet with no established credibility or trustworthiness.
2) How would Williams Corporation replace $88mn of financing if all the investors chose to redeem their investments and no new investors invested?
Investor confidence matters. When confidence is lost by investors, that is how bank runs by depositors occurs, no matter what reassurances are given by the company's representatives.
Each current investor and potential investor chooses to invest or not invest in Williams Corp. No one HAS to invest in Williams Corp related securities.
Also confidence by suppliers matters, otherwise they may be unwilling to extend credit and demand payment before any work is undertaken due to the risk of not being paid.
Williams Corporation finances are not controlled by the directors!
Solicitors handle the payments in and out!
I have established credibility and all facts are correct.
There is plenty of equity and security to payout all shareholders very easily and there can not be a run on finances due to the one year notice to withdrawal.
Williams are professionally managed and absolutely zero chance of financial issues, the way they operate.
"Most property being built is heavily presold before any building occurs."
Property developers need to presell most of the project to get financing for construction.
Buyers can choose to not settle at settlement date.
He believed the company had implied the development would be “largely owner-occupied” and was nearly sold out.
“That actually influenced our decision. We thought: ‘obviously they’re selling fast, we need to get in quickly’.”
The six Biddle Cres townhouses once had committed buyers – but “settlement issues” resulted in the sales falling through.
“They were actually sold – our marketing at the time was factually correct.”
Then the developer still owns the property. What happens when the developer is unable to sell the property for an acceptable price? Buy time until the market prices increase.
The Airbnb option usually provides us with a higher return than a long-term rental would,” managing director Blair Chappell said.
“It’s about being smart with your product and smart with your business. Does it make sense to leave some homes completely empty, generating no revenue?”
https://www.stuff.co.nz/business/property/131017798/williams-corporatio…
Will the lenders choose to renew their financing when the loans mature? If not, will Williams Corporation be able to refinance with another lender and repay the maturing loan?
If buyers dont settle then it is their loss!
They forfeit the deposit to the builder and there is plenty of profit in each project.
The thing with Williams Corporation is that they are diversifying and meeting market demand for required product.
They can sell out a project in ChCh in a few weeks and if not the demand then they do not proceed.
Even if they never bought any more land to build on, they could pay back the Banks and shareholders very easily.
As I previously stated they operate nothing at all like Du Val did!
"If you checked out their financials you sill realise that they are trading very well."
Where can the financials be found?
Investors receive monthly updates of everything financial to do with with the company.
Every property stage, no. Sold, under contract, dollars spent, security value etc.
The company pre sells a big percentage and there is no issues,
Get back to me when subbies or shareholders arent getting paid, but then I will not be hearing from you!
You asked about this on the other thread. I've posted there too but in case you didn't check back, on the Bayswater ridgeline. 4 beds, 3 bath, under $1M
https://www.trademe.co.nz/a/property/new-homes/new-townhouse-terraced/a…
Devonport peninsula, (I'm still not clear where Devonport/Stanley Bay/Cheltenham/Narrowneck/Belmont/Bayswater start and stop even though I live here.
And with the villa you'd pay 300K more, one less bedroom, 2 less bathrooms and one less off-street car park. And that $1.3M villa according to most of here is an aberration and quite underpriced (I don't agree but that seemed to be consensus).
I don't think the villa win is a 100% clearcut, especially if you came from the UK, where one look at that villa and you start asking why people are happy to live in what would struggle to meet building code for a shed back in Blighty.
And if a few immigrants are happy to choose the townhouse over the villa then less demand for the villa = lower price rather than higher which was my original argument.
If it's a character villa it'll likely retain value better than a new build townhouse (if you can get someone capable of building one). Ones timeless character you'd have to spend huge money replicating, the other is worth less as a building as soon as it's not new.
Also the land title is more desirable.
There's a smaller market for the villa, but the people after one are happy paying a premium. Because they're not making them anymore.
You're assuming there is a fixed number or increasing number of people who inherently prefer villas over townhouses regardless of price difference.
If you can get a better built, newer townhouse with more bedrooms, more bathrooms, off street parking on a better site (outlook) for 30% less then it will bring down the price of the villas. It only requires some people to prefer the townhouse for there to be less competition for the villa which means lower prices. A lot of that extra space in the stand alone villa suburbs is actually unusable and the outlook is not necessarily as nice as they are all crammed into what used to be one section.
It's the same with new luxury houses. Even though you can argue that they aren't catering to the lower end of the market they do increase affordability (all things being equal) as people will 'move up' to the more luxurious house freeing up housing at the lower levels.
Increasing supply and removing restrictions that allow supply to increase exerts downward pressure on prices across all segments (all things being equal).
Someone said Devonport, IT Guy talked about walking to the ferry, which I took that to be the case. If we're talking about houses in relatively small, highly affluent historical Auckland suburbs, then I'd stand by what I said. For the best part of 30 years, there's been incredibly strong demand for villas in that sort of suburb, who's values have performed better than new townhouses. Because new townhouses invariably end up looking pretty unfashionable and dated (not quite a Ghetto, but definitely ewwwy).
Looking at a map, Bayswater definitely isn't in Devonport. It's like saying Sandringham is Epsom.
Yes, they are still making villas
They are still making villas, just not 100+ year old ones.
The sort someone will spend 3 million bucks doing up, when they could've spent two bowling it and building a new version of the same thing.
Seemingly illogical, but people are also nostalgic.
??? Doesn't make sense. How can they be tomorrow's ghettos if they are slap bang in the middle of a villa suburb, does the whole suburb become a ghetto? The villas either side of the townhouses?
I actually think townhouses are more likely to hold their value more now than they were before.
As land prices fall and land based capital gains evaporate and the prospects of them returning also evaporate it will come down to which is the nicer house to live in and cheaper to maintain. I think some people will prefer the townhouses. Especially as immigrants coming in to replace all the kiwis leaving do not have the kiwi cultural baggage of a townhouse or apartment being inherently worse than a villa.
Doesn't make sense. How can they be tomorrow's ghettos if they are slap bang in the middle of a villa suburb, does the whole suburb become a ghetto? The villas either side of the townhouses?
Literal ghetto no. But aging townhouse complexes end up being fairly undesirable for anyone wanting something over and above a bland, dated utilitarian box to live in.
Technically you can say that's also a villa, but something 100+ years old ends up charming, something 30 years old, not so much.
So you think that if this drops in price by 50% and is on the market for 500K then old 3 bed villas on shaded sections that need some work are going to not drop in price.
Personally, my view is that some people who may have previously only been able to afford the shitty villa for $1.3M as opposed to a really nice one for closer to $2M) will say I'd actually prefer to pay 500K for the 4 bed townhouse and save myself $800K, especially if they have come from somewhere where smaller houses are the norm.
But hey, it's all hypothetical so we'll find out in 20 years.
They also have no body corporate, so owners who choose not to maintain their townhouses will end up devaluing all the others in the complex. Already seeing a bunch of these developments look like crap as nobody mows the kerb lawn strip, or weeds the side of the driveway.
37 pokey little units with tiny bedrooms and zero outdoor living opportunity.
Not so much as a single car port on offer, and about as close to the middle of nowhere as you can be on the Devenport peninsula. At least you can meet your 120 immediate neighbours at the bus stop when the bus fails to turn up.
Same with Williams, even the Du Val website is still up and running for potential investors.
Someone mentioned above that Williams gated their funds recently. If these developers lose access to funding life becomes very difficult.
10% is not nearly enough reward for the risk, someone needs to be shouting this from the roof tops.
The NZ version of a company that's too big to fail. Auckland RTB Housing market. Effectively the Government are about to bail them out!
Statutory Management 'sponsored' by NZ-Inc for the interim until a buyer materialises.
Let's wait to see how this bubble blows up.
PS. How many National party member investors are there?
"Seriously, there are just so many posters here that really havent got a clue.
Many should be checking out facts before posting them."
Welcome to the internet and free speech. People are free to comment from their own perspective - it may be misinformed, uninformed, ill informed, incorrect or even disinformation from those with a hidden / undisclosed agenda.
Perhaps there is some non disclosed vested self serving interest?
Free speech is fine, posting untruths when the poster has no idea of what they are talking about is not!
Perhaps the poster should be actually finding out the financial standing prior to commenting?
Then someone reckoned that Williams Corporation and Wolfbrook were interlocked!!!
Absolute rubbish, no relationship whatsoever, in competition each other!
Too many people think they have all the answers but what I have learnt is that there are so many people prepared to pretend they know what they are talking about when they do not!
No wonder there are so few people who actually become financially well off in NZ.
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