Who loses the most from Du Val going into receivership?

There are 3 groups I’m most worried about in this story.

First, the plumbers, electricians and other tradies who did work for Du Val and have not been paid.

Some are owed up to $1 million. If these small businesses aren’t paid, that impacts their families. Some small businesses may close.

Second, the investors who put money in Du Val funds. They may lose some of their investments. My hope is that they’ll eventually be paid back.

Once we get the report from PwC (the receivers), we’ll know if that’s likely.

Lastly, I'm worried about the people who bought properties from Du Val. Specifically, the ones that are still under construction.

Some of their projects are heavily delayed.

Let’s say you bought a property from them off the plans? What happens if the property never gets built?

Yes, you should get your deposit back. But you’ve put your life on hold for a property you can never move into (or rent out).

On top of that, property prices may have gone up since you bought. So you might not be able to buy again in today’s market.

Opes has been wary about Du Val for a while… why?

I’ve always believed in transparency. So, for the last few years, I’ve publicly listed the developers we at Opes do and don’t recommend.

Du Val has been on the "do not recommend" list for years. We even did a full video review of their properties to explain the reason why.

This bad story is a good reminder. Property investors need to carefully consider who they buy from.

Ask yourself if a developer has good character. Will they build a good property on time?

Now, Kenyon Clarke (Du Val’s founder) has a big personality. He’s shared photos of himself on Instagram flying in private jets and driving a Rolls Royce.

I want to be clear. That’s not why Du Val has been on my “do not recommend” list.

It’s because I haven’t been convinced that they build quality properties on time. And I’ve not been convinced that those properties are good investments.