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Fears Melbourne building company Blint is on the brink of collapse

A Melbourne builder has “disappeared” placing homeowners under a “horrendous” amount of stress as they are left with half finished homes they have poured hundreds of thousands into that they may struggle to complete.

One family impacted are Dean and Nolle Fuller, who have five children between them, and have already shelled out $480,000 to the builder called Blint, since signing on in January.

The couple had demolished their existing home last November and had engaged Blint Builders to build two townhouses for $1.5 million, due to be delivered early next year.

The slab for the two homes was laid and the first floor framing has been done on both but then work started to slow down in the middle of this year, according to Mr Fuller.

But the 54-year-old said alarm bells really started to sound when his wife drove past the site in the first week of June and discovered that the portaloo had been taken away and a tradition was on site collecting his materials.

She then went straight to the builder’s office only to discover it locked up, while her calls went unanswered.

Two days later on June 9, the owner of Blint told the Fullers he was going into voluntary administration but since then they have heard “nothing”, with emails and phone calls left unanswered and the office empty.

Building site targeted

Their building site has been broken into leaving it a “mess”, Mr Fuller said.

“In that time, we have had two lots of vandalizing and trespassing and damage caused to our property, which has been lodged with police,” Mr Fuller told news.com.au.

“We have had a truck back up and dump three to four square meters of rubble and waste material on the property and the truck also smashed the gates down.

“Recently someone turned up and stole the electrical meter box within the property.”

The project manager said the experience had caused an “unbelievable amount of stress and anxiety”.

“We have half a million dollars outlaid on something that is sitting still and… sitting on a block that is wasting away and not covered by insurance potentially,” he said.

“We are in a situation that we may be forced to compromise significantly on what was our dream home to build.

“We are financially impacted and may have sell off things to complete the build as there have been cost increases and delays. The property we have might have to be stripped right back to be rebuilt, notwithstanding that we have got to pay rent and that we have to be out of this rental by Christmas.”

left in limbo

Mr Fuller said his family would have to negotiate to stay in the rental meaning his, including three of their children, would be forced to be crammed into the small property for another 10 to 12 months.

I have added it’s been almost impossible to find out information when “all we want to do is build a house” and instead they are left in “limbo”.

“It takes a lot of time and hours with pursuing legal options and between the Housing Industry Association and banks and insurance companies it’s relentless,” I explained.

“We are all sitting on insurance policies but because the trigger is Blint going into voluntary administration, none of us can trigger the insurance policies. So we are sitting on property we can’t do anything with as we can’t engage new builders.”

Mr Fuller said it’s a “frustrating” experience and just wants answers from the builder.

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Offices seized

Blint Builder’s office in the Melbourne suburb of Highett has also been seized by the landlord.

Legal documents posted on the front door show the landlord has executed their right to re-entry, terminating the lease and demanding all property be removed and the keys be returned.

The legal notice also revealed that Blint Builders owe the landlord close to $14,000 in unpaid rent and rates.

Emails to Blint are undeliverable, while news.com.au has called, left voicemails and sent text messages to the builder but has not heard back.

‘Horrifying strain’

Another family who are under “horrendous strain” are Tony and Jo Firman and their two children, who are building a home specially designed for her disability.

Mrs Firman has multiple sclerosis and the couple were building a home to meet her needs in the Melbourne suburb of Mordialloc, which included a swimming pool.

They had demolished the original home and signed up to build their $1.2 million house with Blint, which was scheduled to be finished in mid February.

The couple said they have paid $1.14 million so far to the builder and the house is at lock up stage but no work has happened since early June, according to Mr Firman.

“There is no carpet, it hasn’t been painted and there are serious defects that need to be rectified, so there’s still quite a bit of work,” he claimed.

The 54-year-old said he even went to Blint’s office twice in June to find out about the progress of the home.

But since then the builder has “disappeared off the face of the Earth” with Mr Firman’s calls and emails going unanswered, he claimed

“It went from talking to him every day to him never ringing me back and never hearing from him,” he said.

Being left in limbo has taken a toll on him with the online retailer saying he has “never felt more depressed in my life”.

“It’s a massive strain on us as a family, both financially as we are paying rent as well as paying off part of the house that we can’t even live in it as we have no occupancy certificate,” he added.

‘Sending us broke’

Mr Firman said they can’t get a payout from the insurance company until Blint goes into liquidation and it could “cost a lot of money to force that to happen” through the courts.

“Even with the full insurance payout it might not be enough money. We skimped and saved and borrowed quite a substantial amount of money. We are worried we won’t make enough money to repay the loan and be able to live,” he said.

“I fear that this will send us broke.

“It’s very touch and go for us at the moment … My daughter turns 21 next month and her only wish was to have the party at the new house and that won’t happen.”

‘Derelict sites’

Dad-of-three Jamie* had also signed up with Blint in March 2021 to renovate and extend their two bedroom house in the Melbourne suburb of Murrumbeena for $730,000.

The family had planned a double storey addition out the back with a new kitchen, living area and kids’ bedrooms and are currently living in a rental.

Jamie said the work was “slow going” and the family had forked out $600,000 so far.

Now they’ve been left with a half built home, even though it was due to be complete in April, and he describes the site as “quite derelict”.

Jamie confronted the builder at his home in June and was told Rodger Reidy had been appointed to handle the voluntary administrators.

But when he contacted the insolvency specialist firm he was told that it was not the case and Rodger Reidy also confirmed with news.com.au they had not been appointed.

Now, he can’t get in touch with Blint with the phone turned off and emails unanswered.

The 43-year-old said he just wants to be able to finish the home, even if it costs the family an extra $50,000, but he has been left in limbo, adding he is “exhausted and frustrated”.

News.com.au understands a number of suppliers are also owed money from Blint.

*Name changed for privacy reasons

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Business

US billionaire Warren Buffett hit by $63b loss

One of the richest men alive has seen his company suffer a whopping $US43.76 billion ($A63.3 billion) loss as a result of the bloodbath on the share market.

The billionaire Warren Buffett is one of the most successful investors of all time and has a net worth of $US102 billion ($A147 billion).

But there owner of Berkshire Hathaway was forced to reveal the brutal loss after its three biggest investments – shares in Apple, American Express and Bank of America – plummeted in the second quarter amid rising interest rates and runaway inflation.

But Mr Buffett isn’t a fan of relying on investments gains and losses, which can swing wildly from quarter to quarter.

Instead, he said the company’s operating earnings better reflect its performance.

Berkshire’s earning painted a far rosier picture skyrocketing to $US9.28 billion ($A14 billion), from last year’s $US6.69 billion ($A9.7 billion).

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Among the 90 companies operated under Berkshire, including insurance, utility, manufacturing and service companies as well as a railway firm, a $US487 million ($A703 million) loss was reported at insurance company Geico, due to the soaring value of cars and ongoing shortages of car parts.

Berkshire is believed to give an insight into how the broader US economy is faring given the broad scope of companies across industries, amid fears the US could be headed into a recession.

“This is a business that has its tentacles in all different parts of the economy. To show such broad revenue and earnings strength throughout the franchise, it gives me a lot of confidence that the broader economy is performing pretty well,” said Jim Shanaham, analyst at investment firm Edward Jones reported the Australian Financial Review.

The company revealed its revenue grew by more than 10 per cent to $US76.2 billion ($A110 billion) in the quarter as many of its businesses increased prices.

Earlier this year, the billionaire had to backflip on his staunch stance against cryptocurrency in an embarrassing concession.

The businessman was a well-known proponent against blockchains and compared bitcoin – the most popular cryptocurrency – to “rat poison” in 2018.

But in a filing with the US Securities and Exchange Commission (SEC) from Mr Buffettt’s company Berkshire revealed that he had spent a whopping US$1 billion (A$1.4 billion) on cryptocurrency.

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Categories
Business

Interest rates, inflation: Expert reveals four ways you can save money fast

Inflation is through the roof, interest rates are rising and many families are struggling to keep up with their mounting bills.

Finding ways to reduce financial stress can be overwhelming.

For many people, the figures themselves are difficult to grasp — but they know it means they have to tighten their belts.

The Reserve Bank of Australia this week increased the cash rate target by 50 basis points to 1.85 per cent.

Annual CPI inflation also increased to 6.1 per cent in the June quarter, due to higher dwelling construction costs and automotive fuel prices.

So what can you do to relieve your financial pressure?

Curtin Business School instructor and financial planner Elson Goh told NCA NewsWire there were four key ways people could save money.

REFINANCING YOUR LOANS

Mr Goh said everyone with a loan should first contact their current lender to try to get a better deal.

“It is often more costly for a lender to acquire a new customer than to retain an existing one,” he said.

“Go into a bank branch and introduce yourself to the lending manager. It can be easier than dealing with a call center representative.”

Mr Goh also recommends people use a mortgage broker.

“A good broker will negotiate a better deal with your current lender and present other suitable opportunities,” he said.

“Your current lender may respond more favorably if your case is presented well.

“For example, it is pointless to be asking your lender to match the rate that your colleague at work was talking about when their loan size is $800,000 while yours is only $350,000.

“You need the right information such as estimated value of your property and whether or not you have 20, 30 or 40 per cent equity in your home.”

Comparison websites can be a useful tool but Mr Goh warns they are not perfect.

“You have to be cautious as some products may be heavily promoted on these sites and not every lender is represented,” he said.

“Additionally, you cannot focus on just the interest rate or the comparison rate, as there are other things like fees, loan features, loan term and product flexibility that must be considered.

“If you are refinancing your home loan, be mindful of the remaining term of your loan.

“If you have had the property and loan for say five years, and you take up a new loan for over 30 years again, you may be delighted that the monthly repayments are much lower and seemingly more affordable.

“But if you only pay the minimum repayments, you may end up paying more interest over the entire duration and take longer to be mortgage free.”

SWITCHING YOUR SUPERANNUATION

The main types of super funds are employer, retail, industry and self-managed.

Mr Goh said before making a switch you should seek advice if you have a defined benefit scheme, constitutionally protected fund, or benefits paid by the employer.

“You will not be able to restore your entitlements once you switch out to another fund,” he said.

“This can also apply to any insurance policies that you currently have in force within your existing fund.

The tax office website is a good place to start your research.

“However, it is futile to chase after returns as past performance is not a good indicator of future outcomes,” Mr Goh said.

“What you should consider is to ensure that you are paying for services and features that you need and check if the fund is investing at a risk level that you are comfortable with.”

INSURANCE AND UTILITIES

Insurance includes personal, home and content, motor vehicle and health, among others

Mr Goh recommends people seek advice when dealing with personal insurance.

“Your health condition was accepted by the insurance company at the time of application,” he said.

“You are covered under the terms of the agreement as long as you pay your premiums, regardless of the changes to your health.

“Any alterations of your personal insurance may result in reassessment of your current health conditions, which may attract a loading of premiums, exclusion of benefits or outright decline of cover.”

General insurance is different and a cheaper policy is often a result of having less coverage or stricter definition for payout.

But Mr Goh said there were things to consider to ensure you pay for what you need.

“For example, your home insurance cover should only be the amount needed to rebuild your house, not the full purchase price,” he said.

“The excess that you pay upon making a claim is a form of self-insurance.

“Your premiums will become cheaper as you increase the excess on your policy. You can increase the excess if you have available funds saved up and have a low claims history.”

FOOD, GOING OUT AND SUBSCRIPTIONS

When it comes to everyday costs like food and going out, Mr Goh recommends people involve the whole family.

“Rather than trying to formulate a battle plan on your own, you may be surprised by the variety of suggestions that would arise from people with different perspectives,” he said.

Mr Goh said people should make small changes over long periods of time, rather than drastic abstinence.

“It is easier to make small manageable changes than large ones that increase your stress levels. The latter often results in increased spending through retail therapy,” he said.

“Get creative and be flexible with your meals. Substitute ingredients that have gone up in price with more affordable alternatives when cooking.

“Or try preserving vegetables and making jams with produce that are in season or abundance.

“These are some of the things that our grandparents did after the war and they managed to thrive despite experiencing similar if not worse inflationary conditions.”

Mr Goh also recommends people look into their monthly subscriptions.

“They are often payments that get overlooked. If you are not fully utilizing the service or subscription, cancel them,” he said.

He also suggests people find ways to reuse and recycle where possible.

“You can breathe new life into old furniture with a new coat of paint or a box of screws,” he said.

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