Developer bankruptcies

Coming across a number of news articles about developer gone or going bankrupt, see links below. While some businesses normally go under the objective here is to try and see if there is a pattern given the current market conditions.

First, I want to share a website where we can see sub-contractors already flagging builders not paying them timely or potentially going out of business before it actually happens or comes in media. Subbies United - Protecting tradies and contractors

Articles of builders bankruptcies which I have sorted by state and timeline. More to come. Please any additional links/ info you may have/ come across.

Vic:
Feb:
Builder Watersun Homes appoints voluntary administrators

Same builder as above, another article - 'String of bankruptcies' likely to follow after builder Watersun Homes hit the wall

Act:
Mar
Subbies up to $7 million out of pocket after SMI enters administration

Qld:
May:
Company collapse: Fight on to avoid 'massive disaster'

http://mobile.abc.net.au/news/2017-05-12/cmf-projects-collapse-brisbane-apartment-builder/8521762

https://m.centraltelegraph.com.au/news/more-130-tradies-hit-collapse-builder/3212826/

WA:

Jun:
https://www.domain.com.au/news/coll...ld-cost-homeowners-thousands-20170126-gtzccm/

http://amp.watoday.com.au/wa-news/perth-builder-talbot-le-page-homes-goes-under-20170601-gwi3io.html

Builder insurance increase another sign of risk of defaults increasing - https://www.businessnews.com.au/article/Big-builders-facing-insurance-hike

Jan 2017

http://www.watoday.com.au/wa-news/a...-up-to-80-homes-in-limbo-20170120-gtvrlp.html

 

interesting

P.S you sure like to scour the web for negative news on property and create negative property threads, waiting to buy I assume?

 

I am trying to find information that will give me a fuller picture of what's happening. There are a lot hype threads and looks like the market is booming. There is another reality where corporate bankruptcies from developers lead to potential hardship or even cascading bankruptcies for sub-contractors. We as investors should take in this info when it comes to choosing the builders, contractors, locations, finance and other things.

It is easier to miss the forest for the trees. So we need to step back and try to identify a pattern. That's what I am trying to do. People who want to ignore can do so and merrily continue buying.

 

Only individuals can become bankrupt in Australia. An insolvent company goes into administration or liquidation.

 

A block of units went up in flames in the SW in recent days, it is already being said as suspected being purposely lit. Don't know if it was just a firebug though.

 

Yes and interestingly the owner of Watersun is doing quite nicely for himself at the moment.

 

What's the difference?

 

One is a company and one a natural person. The corporations act applies to companies and the bankruptcy act applies to individuals only. Also the conveyancing acts in each state apply to both and have some relevant provisions -e.g. s37A in nsw.