In our article, “High Rise, Higher Risk for Builders”, we noted the dangers faced by contractors working for developers that align themselves financially with proponents of “get-rich-quick” schemes. We meant the sorts of schemes where others are left to deliver on unfounded promises of massive returns for very little effort.
The recent insolvency of Builton, like Freelife Homes and Visionnaire Group before it, highlights this danger. All three were said to have been aligned in the same way with Infinite Wealth which gave seminars to investors, some of whom are reported to have then built up large investment portfolios quickly using borrowed money without thinking about how they were going to pay that money back.
On 13 February and 13 March 2017, HHG’s Murray Thornhill, Matthew Lilly and Daniel Morris will speak at the WA Club about this and many other risks facing developers, construction contractors and investors involved in high rise developments for sale off the plan, for more information or to book a seat click here.