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The International apartments creditor claims hit $125m
14 May, 2021 12:00 AM
5 minutes to read
Gary Groves from the Sanctuary Group is developing the 90-unit project called The International on Princess Street. / Dean Purcell
Gary Groves from the Sanctuary Group is developing the 90-unit project called The International on Princess Street. / Dean Purcell A new report on the company behind Gary Groves $250 million The International apartment project in Auckland shows total creditor claims are $125.2m although they were much higher until unit sales reduced part of the debts.
The Herald reported last month how $69m was the possible shortfall but the latest report has much higher sums.
Loan-to-value ratios (LVRs) already allow borrowers to get loans on new builds with a smaller deposit than they would need for an existing property. For a new build, first-home buyers can usually have a deposit of 10 per cent while property investors are currently required to have a deposit of 20 per cent. In contrast, first-home buyers usually need a deposit of 20 per cent to buy an existing house and investors effectively need a 40 per cent deposit already, although that’s not official until May.
Opposition leader Judith Collins says Prime Minister Jacinda Ardern has broken a promise by introducing a capital gains tax after the Labour Government announced a series of housing policy changes.