More than 500 Victorian homeowners may be out of pocket thousands of dollars after another building company fell through.
Keilor Park-based Snowdon Developments currently has 268 unfinished homes, and another 282 it hasn’t yet started building.
All up, the company owes creditors almost $18 million.
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Alicia Hele and her husband Josh hoped to be spending Christmas last year in their dream first home built by Snowdon Developments.
However, construction on the house in Tarniet was never started.
“Going out to places, looking at baths and colours and showers and all that kind of stuff … it’s a lot of time wasted,” Alicia Hele said.
Greg bought a house and land package next door to the Heles in 2020.
Similarly, his block also remains vacant.
He said he might be facing a loss of $11,000.
“(I paid) basically that money for an empty lot of land,” he said.
“(There was) just really limited information, very vague and particularly in the case of Snowdon, bordering on outright lies.”
At least four other construction companies collapsed over the past week, including Wulfrun Constructions and Langford Jones Homes.
The latter had 65 unfinished homes and owed at least $10 million.
The crisis comes as a result of fixe priced contracts, where builders are having to take in the rising cost of materials.
Victoria’s opposition treasury spokesperson David Davis said the government needed to take a closer look at the fixed price contracts and work with the industry on how to resolve the issue.
Anyone who has been impacted by the issue is urged to visit the Victorian Managed Insurance Authority website.
