The single deposit mistake that cost an Australian family $50k – as their dream home turns into their worst nightmare

A homeowner has warned Australians considering a house-and-land package after the company that built his dream home went bankrupt – with his $50,000 deposit in limbo.

Simone Homes Pty Ltd, based in Leppington in Sydney’s south-west, went into voluntary liquidation on August 24 and owed at least $1.65 million to traders, suppliers and customers, according to a creditors report.

Dozens of customers have been let down, including Chris Le, who was unaware Simone Homes had gone bankrupt until the news broke in the media earlier this month.

Mr Le bought a plot of land in Eagle Vale, near Campbelltown, in December 2021, where he planned to build a forever home for himself, his partner and both parents.

Nearly two years later, the lot is still an empty plot of land.

Another builder has offered to take on the project and cover the deposit Mr Le paid to Simone Homes.

But Mr Le has now lost faith in builders and country house packages.

“I’m at their mercy, it means I’ll have to part with my deposit if I… cancel this mansion package.

“But if I stay, what happens if this builder also collapses and I lose more than $50,000?

‘You have nowhere else to go. We have no choice in making sure we have a good builder.

‘We were forced to work with a builder who was appointed by the person who had packaged this land and house tender.’

‘The past two years have been very painful for me, my partner and our parents.’

Mr. Le was already feeling uneasy about building a house, given the number of construction companies expected to go bankrupt this year.

But then key staff at Simone Homes stopped responding to his emails and he eventually noticed that their website and social media pages were not working.

‘You have nowhere else to go. We have no choice in making sure we have a good builder.”

‘The past two years have been very painful for me, my partner and our parents.’

He has set up a Facebook page so customers can unite to fight for adequate compensation and ensure their homes are delivered.

Mr Le’s family chose Eagle Vale for its proximity to the new Badgerys Creek Airport, accessibility to hospitals in Campbelltown and Camden and the Vietnamese community of Cabramatta.

“My parents came to Australia in 1990 and have worked very hard ever since,” Mr Le said.

‘When I had the opportunity to enter the real estate market a few years ago, I went shopping with my parents.

‘We went from house to house but found so many defects in it. So when we saw the house and land packages, I thought building a brand new house would be cheaper than buying an existing house with defects costing more than $100,000.”

Mr Le is unsure about his chances of getting his money back after filing a claim with the administrator this week.

“There are so many people who owe money and we are low on the creditors’ priority list, which I understand,” he said.

Brad Tonks of insolvency company PKF has been appointed as curator. Creditors who have yet to submit proof of claim to the trustee only have until next Thursday (September 21) to do so.

Daily Mail Australia has contacted Simone Homes and the curator for comment.

The total assets of Simone Homes, founded in 2014, are worth $816,000, but some have a realizable value of zero, according to the trustee’s report.

Other former and current Simone Homes customers have also expressed their frustrations.

‘Horrible company to work with. Save yourself the money and hassle and go somewhere else,” according to a recent Google review.

“It’s better to let a five-year-old child build your house.”

Another disgruntled former customer claims that their house built a few years ago is now leaking.

“I tried contacting the builder several times to get advice on how to properly resolve the issue, but they did not respond to my emails or return my calls,” the Google review said which was posted a month ago.

The company’s social media accounts have been deleted, while the website simply states: ‘we are building a new customer experience’.

“We are Sydney’s choice for bespoke, design and build partners. We are committed to delivering excellent quality, design and service,” the now-deleted LinkedIn page said.

The company describes itself on the Leppington Living website as a ‘trusted home builder’.

“Based on quality, design and trust, we are proud to be one of the most trusted homebuilders in Sydney. Having rich experience in delivering well-built homes, we are known for our exceptional and timely service delivery,” the report said.

“With the proven track record of our craftsmanship, we are not just builders in Sydney, but those who value your ‘dream home’ and strive to make it a reality.”

Simone Homes joins a long list of construction companies that have gone bankrupt in the post-lockdown period, as the construction sector struggles with rising material costs and workforce shortages.