Developer Hua Cheng defaults on $35m loan leaving 14 apartment buyers in limbo

Discussion in 'Property Market Economics' started by New2prop, 28th Aug, 2017.

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  1. New2prop

    New2prop Well-Known Member

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  2. DowntownBlock

    DowntownBlock Well-Known Member

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  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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  4. sumterrence

    sumterrence Well-Known Member

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    Yup this news is circulating around the Chinese community in Australia. Looks like this is only the tip of the iceberg.
     
  5. pwnitat0r

    pwnitat0r Well-Known Member

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    Why would you pay in full without the title? Madness. Nobody to really blame here but themselves IMO.
     
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  6. Scott No Mates

    Scott No Mates Well-Known Member

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    Who's holding the money?
     
  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    someone out of reach in a tax haven.
     
  8. Scott No Mates

    Scott No Mates Well-Known Member

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    Very well advised on they buyers' part. (I know, they ignored the advice).
     
  9. tobe

    tobe Well-Known Member

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    I'm pretty sure that's how they do it in China, pay the full amount prior to the construction being started/completed.
     
  10. DaveM

    DaveM Well-Known Member

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    Its OK they will resurface with the owners brother or uncle as director
     
  11. sash

    sash Well-Known Member

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    More this brewing in Sydney.....watch for mid sized development or mom & pop developers who get into trouble.

    The banks will pull the rug from under their feet.....
     
  12. New2prop

    New2prop Well-Known Member

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    Are there other stories like this? Please share.
     
  13. Joynz

    Joynz Well-Known Member

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    'Mom & pop' developers? You know this is Australia, right?
     
  14. See Change

    See Change Well-Known Member

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    Well , some didn't seek legal advice , some sought it and ignored it ( not to buy ) and went ahead any way .

    People acting foolishly , wanting a bargain and then whinging when it goes pear shape .

    Compare it to some of the stories that come out of China re Australian's doing business over there .... At least over here we do have recourse to a transparent and non politically loaded legal system .

    Cliff
     
  15. sash

    sash Well-Known Member

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    Yep...and lot have no clue of the perils of development....they have not idea...what can happen.

    What exactly is your point?
     
  16. Ace in the Hole

    Ace in the Hole Well-Known Member

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    Just a translation thing Sashi.
    We usually refer to them as Mum and Dad investors/developers, etc.
    Don't know why the Mum always comes before the Dad, maybe because final approval is required by the Mum before proceeding ?
     
  17. sash

    sash Well-Known Member

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    Yes....and they usually jump in at the peak.......but I agree it is mom who is the decision maker....and driver for these sort of things...
     
  18. Gavin Ng

    Gavin Ng Well-Known Member

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    Wannabe developers more like it. The type of rubbish I hear from people claiming to be developers on a daily basis...

    Back on topic. Not unusual for hk and Chinese otp to be paid for in full upfront for a tasty (circa 15%) discount.

    Recent influx of otp apartments due for completion but unable to settle. We all know the story. Rich chinese kids get into a frenzy, (multiple units in the same development) and when the finance falls through the effect is also multiplied. Noticed a few EOI's coming up on gumtree for OTP apartments from buyers unable to settle. Think 1.5m 2/2/1 in Central Park, ouch.