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

A homeowner and his parents caught up in the collapse of a construction company now find themselves locked in a desperate battle with builders, liquidators and lawyers to ensure they do not lose their property deposit.

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

The amount owed has since increased as the list of creditors submitting proof of claims to the PKF liquidator continues to grow.

Dozens of customers were left in the lurch, including Chris Le, who was unaware Simone Homes had gone into liquidation until the news hit the media earlier this month.

He purchased land in Eagle Vale, near Campbelltown, in December 2021 to build a dream home for himself, his partner and both parents.

Nearly two years later, the land remains a vacant block of land following a series of unexplained delays in registering the land.

An aerial view shows one side of the street made up of vacant land. One of these empty lots belongs to Mr. Le

Mr Le lost his $50,000 deposit paid to Simone Homes for a package of houses and land and fears he will not be able to recover much of it from the liquidators.

Another builder offered to take over the project and honor the deposit paid to Simone Homes.

But Mr. Le has now lost confidence in builders and land lots.

“I’m at their mercy, that means I’m saying goodbye to my deposit if I’m with them and I’m leaving this mud house package.” But if I stay, what happens if this builder also collapses and I lose more than $50,000,” Mr Le told Daily Mail Australia.

“There is nowhere to go. We have no choice but to make sure we have a good builder.

“We were obliged to call on a builder designated by the one who had prepared this offer of land and house.”

“The last two years have been very painful for me, my partner and our parents.”

Despite dozens of construction companies disappearing in 2023, Mr Le was worried and even more stressed because the delay in land registration meant there was no home insurance or builder’s insurance if things weren’t working. Initially, Mr. Le did not fear that his deposit would be threatened.

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

“There is nowhere to go. We have no choice but to make sure we have a good builder.

“The last two years have been very painful for me, my partner and our parents.”

The disappearance of dozens of construction companies in 2023 had made Mr Le worried and even more stressed, because the delay in land registration meant there was no home insurance or builder’s insurance if the things weren’t working.

But then Simone Homes stopped responding to his emails and he eventually noticed that their website and social media pages were no longer working.

Mr Le says he knows of six other affected Simone Homes customers in Sydney’s south and southwest.

Chris Le fears he lost his $50,000 deposit with Simone Homes after the construction company collapsed. In the photo, his block of land which remains vacant

He created a Facebook page so customers could come together to fight for adequate compensation and ensure their homes were completed.

Mr Le now regrets the decision to build his dream home instead of buying an existing home in Sydney’s booming south-west region.

They chose Eagle Vale because of its proximity to the new Badgerys Creek Airport, its accessibility to hospitals in Campbelltown and Camden as well as the Vietnamese community in Cabramatta.

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

“When I had the chance to enter the real estate market a few years ago, I took my parents shopping.

“We went from house to house but we found so many faults. So when we saw the house and land lots, I figured that building a brand new house would cost less than buying an existing house that had defects costing over $100,000.

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

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

Brad Tonks of insolvency firm PKF has been appointed liquidator.

Creditors who have not yet submitted proof of claim to the liquidator only have until next Thursday (September 21) to do so.

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

When news of the collapse of Simone Homes broke a fortnight ago, there were at least 11 secured creditors and 53 unsecured creditors, including subcontractors, suppliers, banks, clients and the office Australian taxes.

Established in 2014, Simone Homes’ total assets stand at $816,000, but some have a realizable value of zero, according to the liquidator’s report.

Simone Homes Pty Ltd (house on display in photo) entered voluntary liquidation on August 24 with at least $1.65 million. The amount owed to creditors has since increased

Alarm bells rang for Chris Le when he realized that Simone Home’s website had been taken down.

Other past and present customers of Simone Homes have also expressed their frustrations.

“Horrible company to work with. Save yourself the money and trouble and go elsewhere,” says a recent Google review.

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

Another disgruntled former customer says his house built a few years ago is now leaking.

“I have tried to contact the builder several times just for advice on how to properly resolve the issue, but they have neither responded to my emails nor returned my phone calls,” the review states from Google published a month ago.

The company’s social media accounts have been deleted while its 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 providing excellent quality, design and service,” its now-deleted LinkedIn page states.

The company describes itself on the Leppington Living website as a “trusted housebuilder”.

“Basing our foundations on quality, design and trust, we pride ourselves on being one of Sydney’s most trusted home builders. Having a wealth of experience in delivering well-built homes, we are known for our exceptional and punctual services,” he says.

“With our proven track record of craftsmanship, we are not just any Sydney builders, 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 been placed into administration in the post-lockdown period, as the construction sector struggles with soaring material costs and staff shortages.

Trade contractors, building suppliers and customers are among those who owe money to Simone Homes (stock image)