Homebuilder’s ‘living nightmare’ after Porter Davis collapsed as she threatens to lose $20,000 in savings and is forced to move back in with her family
- Porter Davis went bankrupt last Friday
- It left several clients’ deposits uninsured
- People face losing their entire deposits
A devastated client who suffered a $20,000 loss after her builder went bankrupt said she is experiencing a “nightmare.”
Porter Davis hadn’t started construction on Belinda Georgieski’s house when it went bankrupt last Friday.
The company’s sudden collapse has put up to 1,700 properties in Victoria and Queensland at risk, and on Tuesday morning angry clients were told during a webinar by trustee Grant Thornton that many of them were uninsured and could lose their deposits.
Grant Thornton warned that those who have put down a down payment but have not yet started construction on their home could lose their money and pay additional fees when switching to a new builder.
Ms. Georgieski said she is one of the Porter Davis victims in danger of losing everything she has worked hard for years to save.
Homebuilder Porter Davis (above) filed for bankruptcy on Friday, jeopardizing 1,700 housing projects in Victoria and Queensland
“It’s been nightmare after nightmare. Stress, not being able to sleep, not knowing what’s going to happen,” she told Sunrise on Wednesday.
“It’s just a wait and see game and if we’re told we might not even get the deposit back, we’ll just have to start over. It’s a kick in the stomach.’
Grant Thornton’s Said Jahani explained that many clients will not get help from the Victorian Managed Insurance Authority (VMIA) or the Queensland Building and Construction Commission (QBCC) due to licensing issues.
“What we have become aware of is that there was usually a time lag between a client paying the down payment and signing a contract, through to getting the permit to start work,” he said. the webinar.
Belinda Georgieski (above) will likely lose the $20,000 deposit she paid to Porter Davis
“Now the gap between paying the down payment and getting the permit for the works can sometimes be weeks, sometimes months.
“Porter Davis’s practice was that once the permit was obtained for work to begin, at that point the insurance would be purchased.”
Mr Jahani said the builder’s policy of leaving clients’ deposits uninsured until a permit is obtained could cost people thousands of dollars.
“So there are some clients who have fallen into that gap between paying a down payment and the work not yet starting… who may not have insurance coverage,” he said.
“We’re in discussions with the VMIA about what the consequences might be for customers who fall into that hole, and it’s extreme – it means you don’t have any insurance coverage and it means the deposit you paid has been lost.”
“But like I said, we’re trying to work with the VMIA and QBCC to see if there’s an alternative solution.”
The QBCC has since come forward to inform Porter Davis customers who were not covered by insurance but had signed a construction contract that they may be covered by the Queensland Home Warranty Scheme and get their money back.
Liquidator Grant Thornton said Porter Davis (above) often left clients’ deposits uninsured pending permit approvals, which could take months
However, Victorian clients like Ms. Georgieski have little to no hope of recovering the money lost under the VMIA.
She said the news has taken a huge toll on her and she has been forced to move back in with relatives as she figures out what to do next.
“I am struggling emotionally and financially. The past few years have been terminal,” Ms. Georgieski told Sunrise.
“During the lockdowns (we were) saving every penny. It’s a struggle, especially now that inflation is rising. I can’t explain what it feels like without breaking down.’