AUSTRAYA … has lured millions of these foreign buyers to launder their black money in high-rise apartments … And all our Real Estate …
AUSTRAYA’S infamy for dangerous animals with sharks, spiders and
with more deadly snakes than any other country …
BUT perhaps it’s the two-legged devilopers that pose the biggest threat to those lured by a Permanent Resident Visa, Medicare, clean air and sunshine …
FOR ‘new homes’ clad in combustible cladding … and no longer built to Standard …
TO add salt to this wound … buyers cannot be sure that their deposits are safe!
How Ralan torched Chinese investor millions
By Unconventional Economist in Australian Property
December 2, 2019 | 28 comments
Earlier this year, developer Ralan collapsed owing creditors at least half a billion dollars. Included among those impacted were hundreds of buyers who bought apartments off-the-plan and who are now facing deposit losses of up to $70,000 or more.
Many of these buyers were Chinese were targeted in an elaborate ponzi scheme and faced millions of dollars in losses.
On Friday, it was revealed that Ralan’s sole director, William O’Dwyer, burned millions on bitcoin, credit cards, properties, and other questionable purchases:
Developer Ralan’s sole director William O’Dwyer has refused to pay back $19 million to the company, saying it was payment in lieu of his salary…
An analysis of cash flow between 2016 and 2019 shows Mr O’Dwyer withdrew millions of dollars which were used for a variety of purposes, including purchasing $1.7 million in bitcoin between 2017 and 2018.
Other spending included $300,000 on school and university fees and $2.7 million in American Express charges mostly for clothing, groceries and holidays. He also made $2.3 million in loan repayments and interest charges relating to his properties…
“We will need to commence legal action to try to recover these monies. Any recovery will be dependent on Mr O’Dwyer’s personal financial capacity to repay this demand,” [administrator] Grant Thornton said.
These buyers are now unsecured creditors of Ralan. They rank below a Westpac secured loan and the Wingate unsecured loan. Therefore, they are likely to only receive pennies on the dollar.
Ralan represents another blow to Australia’s apartment market, which is already reeling from buyer concerns surrounding flammable cladding and structural faults.
Buying an apartment off-the-plan is like playing financial Russian, given buyers cannot be sure that their deposits are safe, nor that their apartments will be built to standard.
Unconventional Economist
Leith van Onselen is Chief Economist at the MB Fund and MB Super. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
SOURCE: https://www.macrobusiness.com.au/2019/12/how-ralan-torched-chinese-investor-millions/
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