Steve Navratil aka Steve Navra

Discussion in 'Property Experts' started by See Change, 1st Jun, 2018.

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  1. See Change

    See Change Well-Known Member

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    Just to make it easier ...

    For anyone searching for info on Steve Navratil , he was previously known as Steve Navra and has been the subject of many threads on Property Chat and Somersoft .

    Please search under the name Steve Navra if you want more information on his past track record

    This is but the latest thread on his dealings and the impact they have had on the lives of many people .
    Steve Navra - Economics References Committee 2015-08-06

    Cliff
     
  2. skater

    skater Well-Known Member

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    I'm just gutted that he can continue on his merry way, after the affects he's had on so many.
     
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  3. See Change

    See Change Well-Known Member

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    It's nice to see if you google Steve Navra , the second link is to this forum :)

    If people don't do any due diligence , at least they can't blame this forum :cool:

    Cliff
     
  4. Lacrim

    Lacrim Well-Known Member

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    Were there any Somersofters who got sucked in and lost money?
     
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  5. Foxdan

    Foxdan Well-Known Member

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  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker Business Member

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    Heaps it seems. (not me)
     
  7. skater

    skater Well-Known Member

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    Nor me, but yes, heaps of people were hurt.
     
  8. Francesco

    Francesco Well-Known Member

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    I remember attending one of SN's spiel on his investment scheme in Canberra to many early members of Somersoft forum. Fortunately, I did not participate in his scheme.
     
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  9. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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  10. geoffw

    geoffw Moderator Staff Member

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  11. Wukong

    Wukong Well-Known Member

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    This is good. For any new investor seeking knowledge, good thing for the internet, a quick google will provide the necessary warnings. This thread should stay higher up for all new visitors.
     
  12. willair

    willair Well-Known Member Premium Member

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    Quote..
    And Navra believes he has been unfairly targeted in parliament.

    “If I had done something wrong ASIC would have taken action against me,” he says. “I’m an elderly person in my 60s working month by month.”
     
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  13. turk

    turk Well-Known Member

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  14. Simon Hampel

    Simon Hampel Founder Staff Member

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    That's one of the most comprehensive reports on the fallout of the Great Southern fiasco I've read.

    Personally, I believe that investors were grossly let down by the lawyers who ran the original class action which was completely inadequate and served to benefit themselves over 5x more than the investors - while also leaving the investors involved without any rights at all.

    They received bad advice when investing in the loans, then they received bad advice from the lawyers who instructed them not to make repayments on their loans - which then caused the investors even greater hardship.

    The fact that the original tax ruling was something that "should never have been given in the first place" and was later withdrawn (causing the schemes to collapse and trigger the issues), is also something the government takes no responsibility for.

    This is all compounded by the fact that the government has been largely disinterested (other than some "stern words" at a royal commission which achieved nothing) in the plight of these people given they have received bad advice at pretty much every step of the way.

    Indeed, if they had sold assets and paid back the debts when first confronted with the issues - or even just declared bankruptcy back when they first couldn't pay their debts - then many of these people may actually be in a far better financial position right now after having had a chance to start again!

    I fear that some of these people are still receiving bad advice - although I also see that for some they have likely gone too far to stop fighting now, especially as outstanding debts continue to mount. At some point, regardless of how "right" they feel they are - they need to make a decision about which path will lead to the best outcome long term - and I fear that continuing to fight is unlikely to be the answer.

    Either way, I think the whole debacle has been a disgrace - although rather ironically - I also believe (based on everything I recall from the information given to his clients at the time), that Steve Navra genuinely believed that the loans were non-recourse and is not entirely to blame here for causing these problems (specifically relating to Great Southern).

    That being said - given there seems to be zero documentation about the supposed non-recourse loans, it does lead to questions about exactly what the basis for Navra's business believing them to be so - was it just a verbal "promise"? Really? I guess it should be rather unsurprising that the reality seems to have been somewhat different to the sales pitch which turned out to be based more on enthusiastic over-optimism than common sense.

    If there was evidence that Navra's clients were fraudulently placed in loans based on falsified loan applications - then I believe that he should be in prison right now. I didn't think that was the kind of thing he did though - I consider him to be guilty of extreme overconfidence (arrogance?), and certainly for giving advice which was inappropriate to the risk profiles of some investors - but I never considered him to be doing stuff which was actually fraudulent.
     
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  15. Simon Hampel

    Simon Hampel Founder Staff Member

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    Some key lessons learned:
    1. when borrowing to invest, weigh the risk that the asset backing the debt could become worthless, leaving you with debt to repay but no asset
    2. keep copies of all sales material, the PDS, all loan and investment applications and anything relating to your investment and loans in case there is ever a dispute
    3. check the claims made in sales pitches against the PDS and other official documentation to see if things really are what they claimed (eg where was the documentation showing it to be a non-recourse loan?)
    4. check how the advisers are getting paid and if their payment is significant and up-front, then be very very careful. Very common pattern from this era - large commission payments (10%+!!) to get clients into products.
    5. Don't assume that just because a company is listed on the ASX, that they are "legitimate and trustworthy". Turns out that Great Southern was literally a giant ponzi scheme - they were using investments from new investors to pay income to existing investors!
     
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  16. New Town

    New Town Well-Known Member

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    I thank God I dodged this Great Southern bullet. A mate in finance invited me to a seminar he was attending put on by his accountant. The spiel sounded good and I was prepared to purchase but my friend actually suggested the payback period was too far away. The brochures were still on my desk a week later when the thing collapsed to dust.
     
    Last edited: 28th Jul, 2018
  17. Simon Hampel

    Simon Hampel Founder Staff Member

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    From memory these were something like 20 year investments? That was my main problem with them too - you end up locking up your capital for a very long period of time with pretty much zero flexibility.
     
  18. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker Business Member

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    And read the terms of the contracts you intend to enter, before you sign.
     
  19. Simon Hampel

    Simon Hampel Founder Staff Member

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    You'd think that would be obvious, wouldn't you? :rolleyes: Sadly, doesn't always seem to be the case :(
     
  20. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker Business Member

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    From what I see I don't think anyone reads contracts before agreeing to be bound by them.
     
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