Shore Homes: The sad reason for the Sunshine Coast home-building company’s liquidation
After its license was suspended due to failure to disclose financial issues, a residential homebuilder went into liquidation. It is now prohibited from finishing unfinished homes.
Shore Homes, based in Queensland on the Sunshine Coast, went into liquidation Tuesday. This was less than four years after they were registered under an era when COVID grants of up to $25,000 were available for home construction.
The Queensland Building and Construction Commission has confirmed that its license was cancelled on the 27th of June.
A spokeswoman for Daily Mail Australia said that the company is not allowed to carry out any construction work, even if it has already begun.
Queensland law requires that building companies disclose whether they are having trouble servicing their debts or have sufficient cash flow. These rules, known as the ‘ minimum requirements’, require them to disclose this information.
The spokeswoman stated that ‘QBCC licensees must always comply with their MFR. This includes having enough assets and capital to complete the amount of work permitted in their license category.
Queensland Home Warranty Scheme must insure any residential building work including small renovations valued at more than $3300.
Shore Homes Pty Ltd was registered in October 2020. This was just four months after the former government of Scott Morrison announced a program called HomeBuilder, which offered $25,000 to homeowners who wanted to build a house or renovate their existing property.
The Australian Securities and Investments Commission has reported a rise in homebuilders. Construction companies account for a quarter of all insolvencies.
Daily Mail Australia contacted Brisbane insolvency firm Rodgers Reidy director Kaily Chua but she refused to comment.
Shore Homes’ website has been taken down, as have its Instagram and Facebook accounts. Director Joshua Baxter (35), based in Yaroomba, is no longer reachable by mobile.
A QBCC spokesperson stated that ‘Homeowners in Queensland affected by the liquidation residential building and construction firms such as Shore Homes, can seek assistance via Australia’s most easily accessible home warranty program’.
Matthew Caddy, Melbourne-based partner at insolvency firm McGrathNicol said that the HomeBuilder program of the former government had created an artificial demand for home building.
He told Daily Mail Australia that ‘you saw the pressure on the home construction market after Covid, where builders signed record numbers of contracts in advance thanks to government incentives and grants for home buyers.
The home builders struggled to build these homes because they were not profitable.
The Australian Securities and Investments Commission has reported a rise in homebuilders. Construction companies account for a quarter of all insolvencies.
Daily Mail Australia contacted Brisbane insolvency firm Rodgers Reidy director Kaily Chua but she refused to comment.
Shore Homes’ website has been taken down, as have its Instagram and Facebook accounts. Director Joshua Baxter (35), based in Yaroomba, is no longer reachable by mobile.
A QBCC spokesperson stated that ‘Homeowners in Queensland affected by the liquidation residential building and construction firms such as Shore Homes, can seek assistance via Australia’s most easily accessible home warranty program’.
Matthew Caddy, Melbourne-based partner at insolvency firm McGrathNicol said that the HomeBuilder program of the former government had created an artificial demand for home building.
He told Daily Mail Australia that he had seen the market for home construction under pressure after Covid when builders signed record numbers of contracts in response to government incentives and grants.
The home builders struggled to build these homes because they were not profitable.
