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A man who was jailed after concocting an elaborate $6 million property scam to defraud overseas investors has been granted a year to get his affairs in order before he’s deported back to China.
He and his female co-offender pleaded guilty to a raft of dishonesty charges in 2021 after they were found to have defrauded a wealthy couple by convincing them to buy part of an Auckland property development.
The man was served a deportation notice from Immigration New Zealand shortly before he was released from prison on parole in May last year. Since then he has fought to remain in the country by filing an appeal with the Immigration and Protection Tribunal (IPT).
In a recently released ruling, the tribunal declined his appeal but granted him a one-year visa to get his affairs in order and to pay the remaining $640,000 he still owes his victim.
NZME has not published the man’s name to protect the privacy of his young child.
However, he told NZME in an emailed statement that his mistakes “have not only harmed society and victims but have also had irreparable effects on my family”.
“Regarding the recent decision by the IPT, my family and I are deeply disappointed. This outcome has added to the challenges we are already facing,” he said.
“I am currently dedicated to rebuilding my life, repairing relationships with my family, and diligently working to move forward. I have severed ties with past acquaintances to focus on positive changes.”
According to the tribunal decision and court documents, the man’s scam involved a proposed investment property in an Auckland suburb.
An overseas investor was told he needed to invest certain sums of money to purchase the property, while the man and his co-offender also told him others were contributing towards the investment.
But they misrepresented the amounts required and no others were offering any funds.
The fraud, court documents show, included the use of a $10m loan agreement with forged signatures and numerous emails containing false invoices to help obtain the investor’s funds.
Phony invoices for the development were also generated as coming from law firms, a geotechnical company and an engineering and design consultancy as well as a forged Land Information New Zealand (Linz) title document.
The investor said in a victim impact statement he became suspicious about the arrangement and had his accountant examine the accounts, leading to the discovery of a multimillion-dollar shortfall.
The total sum of the fraud, the court heard, was $8m but the investor was deceived into paying about $6m.
Since then, the man has repaid $1.32m to his victims.
Both offenders served just shy of three years in jail after they pleaded guilty to charges of theft by a person in a special relationship, obtaining by deception, using a forged document, false accounting, and dishonestly using a document.
Because the man committed an imprisonable offence within five years of becoming a resident of New Zealand, he voided the terms of his visa and became liable for deportation.
However, the tribunal has the power to overrule Immigration New Zealand when there are exceptional circumstances of a humanitarian nature.
His claim to the tribunal was that since his offending, his life has been ruined and he has lost his savings, reputation, marriage and his freedom.
While now separated from his wife, he still helps service her mortgage, provides for his daughter and is looking after his elderly parents, who are also in New Zealand.
“His deportation would deprive his young daughter of his fatherly care and support and the enjoyment of a normal life,” his lawyer, Roger Chambers, said in submissions to the tribunal.
“The appellant’s elderly parents are permanent residents of New Zealand. They are unable to return to China as they have no property or assets there and are in poor health. The appellant is their only son and, if deported, he would be unable to support and care for them in their old age.”
Chambers said that deportation would expose his client to loneliness and depression as a result of forcible separation from his family and would be “unduly harsh”.
“The appellant has accepted his role in what was ‘rather comprehensive’ offending and put right the wrongs that he was involved in,” Chambers said.
Rhys Boyd, counsel acting on behalf of the Minister for Immigration, said the man had failed to meet the threshold for exceptional humanitarian circumstances.
“The appellant’s offending was in flagrant disregard to the rights of the victims,” Boyd said.
“It would be against the public interest to not deport the appellant because of the seriousness and number of his convictions, the extremely high monetary value and sustained nature of his offending, and the risk of recidivism.”
The tribunal took into account the man’s relationship with his daughter and that deporting him would be a significant upheaval for her.
“His parents will be faced with a difficult choice between remaining in New Zealand without their son and with the absence of the social support that he provides or a return to China with him where they no longer own a home and will face shame and humiliation of family members,” the tribunal noted.
“In addition to these factors, the tribunal has the best interests of the appellant’s daughter at the forefront of its mind as a primary consideration that must be weighed in determining whether it would be unjust or unduly harsh for the appellant to be deported.”
Ultimately, the tribunal found it would not be unduly harsh for the man to be deported.
However, it exercised its discretion to grant him a year to get his affairs in order in terms of arranging care for his daughter and parents, and to pay the remaining $640,000 he still owed his victim.
Jeremy Wilkinson is an Open Justice reporter based in Manawatū covering courts and justice issues with an interest in tribunals. He has been a journalist for nearly a decade and has worked for NZME since 2022.
Some in cottage country have been singing the blues since Ottawa proposed changes to capital gains taxation as part of the recent federal budget. Their tears reveal they don’t yet recognize how class dynamics have changed as a result of the damage done to our housing system.
Owning a cottage or investment property is no longer a middle-class reality. It’s a sign of affluence in a country where rent and home ownership are so much more expensive for younger residents today than when baby boomers were young.
More, not less, taxation of second properties is required to protect younger Canadians in the housing market, fill the revenue hole left by governments that did not plan adequately for boomers’ retirement, and spur productivity.
I genuinely sympathize when people struggle to ensure that a cherished cottage remains in the family, and I appreciate that taxation plays a role in complicating their planning.
But anyone struggling with that challenge has to sympathize even more with the many hard-working younger folks and newcomers who struggle to afford rent, let alone home ownership of any kind.
Paying taxes on a half-million-dollar capital gain from a cottage or an investment property is a good problem to have. I could line up millions of younger Canadians who would jump at the opportunity to trade their housing woes for that privilege.
Plus, mom-and-pop investors have been harming housing affordability. They contribute to bidding-up average home prices, and they’re implicated in rising rents charged to younger folks increasingly locked out of home ownership. Purpose-built rental construction is a more efficient way to scale up the supply of rental units.
Social Capital Partners, a non-profit focused on broadening access to ownership, rightly calls out this problem, lamenting the role that domestic, small-scale investors have played in crowding-out first-time buyers. They remind us that mom-and-pop investors in residential real estate now outnumber corporate and foreign investors combined.
Canada could “make upward of a million [homes] available over the next decade” for aspiring owners, SCP observes, if we reduce the activity of investors in the housing system to levels that resemble their share of purchases 10 years ago – “all with no additional shovels.”
To advance this goal, they recommend “taxing capital gains on investment property at the same rate as income.” In other words, they propose 100 per cent of capital gains earned from properties other than principal residences should be subject to income taxation – not just the 50 to 66 per cent required by the 2024 budget.
I like this recommendation for three reasons.
First, it’s hard for younger Canadians to compete with mom-and-pop investors in the housing market. Whereas young folks only bring their earnings to bid on a home, investors can also tap into profits they’ve gained from their housing assets. Since those profits are sheltered from taxation by comparison with labour earnings, the SCP proposal would reduce the tax advantage that helps investors outbid first-time buyers.
Second, mom-and-pop investors tend to be older, which means they are especially likely to be in the generations for which federal and provincial spending is growing most rapidly in government budgets. The SCP proposal would raise additional revenue disproportionately from affluent members of the generations that are benefitting from new spending that is driving government deficits.
Third, the SCP tax change would stimulate productivity. Real estate, rental and leasing have represented the largest share of Canada’s GDP for years, but relatively little employment. This pattern is a root cause of the nations’ poor performance when it comes to economic growth per capita.
When Canadians use their investments to bid up the price of existing homes (which is the vast majority of what is on sale), the investments do relatively little to increase productivity. Instead, they seek wealth windfalls at the expense of inflating the major cost of living for those who are not yet home owners.
By discouraging speculation in housing that is not purpose-built rental, the SCP proposal would incentivize investment in manufacturing, the green economy and other industries that have a better track record at improving productivity than investment in most real estate.
We may lament that owning a second property is no longer a marker of the middle-class. But we need Ottawa to recalibrate the tax code for the present, not the past. Further taxation of second properties and mom-and-pop investors is necessary to promote fairness for every generation.
Dr. Paul Kershaw is a policy professor at UBC and founder of Generation Squeeze, Canada’s leading voice for generational fairness. You can follow Gen Squeeze on X, Facebook and subscribe to Paul’s Hard Truths podcast.
Dear Nancy,
I had planned to sell our family cottage and an investment property next year. With the recent budget change and the expected capital gain from the sale of these two properties being more than $250,000 I’m not sure I should wait. What do you think?
Dear Steve,
Certainly, the change of tax rules on capital gains should be considered but I don’t like a tax decision to rule an investment decision. You must have had some reason that you were going to wait until next year.
Deciding to sell a real estate property is not something that can be done as quickly as when selling a stock or bond. There is something to think about that could come into play if you try to sell before the June 25th deadline. There are many other real estate investors that will be trying to do the same thing. That can cause an increase of listings for sale. When there is more supply than demand, prices go down. You could end up selling for less than you expect. You could end up losing more money than the higher tax rate if you don’t wait.
Consult your real estate agent to get advice on pricing, expected time to complete the sale and cost to get your properties ready for sale. In the end it may turn out it is better to wait after the rush for the exit is finished.
Nancy Woods is portfolio manager and senior investment adviser with RBC Dominion Securities Inc. Send your questions to asknancy@rbc.com
See related stories:
Cottage owners rush to sell ahead of capital gains tax changes, realtors say
Seven ways the 2024 federal budget affects your finances, from selling your cottage to RESPs
Rob Carrick: Own a cottage or investment property? Here’s how to navigate the new capital gains tax changes
Tim Cestnick: Capital gains tax changes impact Canadians in many — and needlessly complicated — ways
At the start of the month real estate DLT startup Coadjute announced a funding round led by Lloyds Bank, including two other major banks Natwest and Nationwide, and the largest UK property website Rightmove. Since then things have snowballed with two major estate agencies, Foxtons and The Property Franchise Group (TPFG) announcing they will use the platform to digitize the paperwork and communications involved in house sales.
Coadjute is a workflow solution that enables data sharing about a sale between estate agents, conveyancers (lawyers), mortgage brokers and banks. Several UK real estate software suppliers have integrated with the platform.
Meanwhile, TPFG spent five months piloting the solution at 12 branches and found it saved 25 minutes per transaction on average. It is the largest franchised estate agency in the UK, with 930 locations and 16 brands.
Additionally, a large proportion of UK transactions fall through after a sale is agreed. Some estimate the figure at more than 30%. A strong sign is if the transaction stalls with a system like Coadjute’s making it easier for the seller to identify the bottleneck.
“We know that in today’s market, consumers are increasingly anxious about the whole process and by offering access to the Coadjute network, we can help to ease these concerns and offer a level of transparency around the process, whilst speeding up transaction times,” said Adam Noonan, Group Commercial Director TPFG.
“Coadjute’s technology enables everyone in the property transaction a clear view of what is happening and when, thanks to the real-time connection.”
Foxtons also joins
Last week the Negotiator reported that upmarket realtor Foxtons has signed up and is also using the consumer app Home.
“With the help of Home and Coadjute, our buyers and sellers will be able to better manage the cost and admin requirements of moving, while also benefiting from the reduced chance of a fall through,” said Foxtons CEO Guy Gittins.
“Thanks to advanced blockchain technology buyers and sellers can immediately, securely and confidently communicate with their agent, conveyancer or broker, all from one place.”
Last year Coadjute participated in the Bank of England’s Project Meridian to synchronize the change of ownership of a house at HM Land Registry with the payment. Coadjute uses R3’s Corda enterprise blockchain.
Financial freedom may seem like an unreachable goal.
This was how Samuel Leeds felt at the tender age of 17, when he was mocked for pursuing property investments with very little funds – before silencing his critics by going on to become a millionaire at just 21.
And now, he is passing his wisdom to others with his incredibly successful Property Investors Crash Course, which you can attend for just £1.
Coming to Leeds, Birmingham and Manchester, Samuel is preparing to tell how he went from a plasterer to a property magnate with a seven figure bank balance.
The course is designed for everyone from beginners looking to get into the property game to skilled investors seeking to enhance their knowledge and meet like-minded individuals in the world of property investment.
Click HERE to book a slot, so you too can learn how Samuel swapped humble beginnings for a millionaire lifestyle as a tycoon, teaching everything from using AI to utilising the Buy, Refurbish, Refinance Strategy.
So what does Samuel teach on this course?
– The secrets to becoming a successful property investor
– How to find fantastic property opportunities quickly and effectively
– How to utilise other peoples money to get started
– How to uncover incredible property deals within seconds using AI-Powered Platforms
– How to build your power team to systemise your business
– How to create a passive income to give you the freedom you desire
– How to recycle your money using the Buy, Refurbish, Refinance Strategy
How did Samuel make his millions?
After struggling in school, Samuel was faced with many critics laughing at him when he pursued property investment aged 17 with very little funds.
What he discovered school taught nothing about money, Samuel insisted the system conditions students to be poor.
He says: ‘I have nothing against schools, jobs or banks. They have their place, but as Jim Rohn says, “Formal education will earn you a living, but self-education will earn you a fortune…
‘That is why you absolutely cannot afford to miss the Deal Sourcing Crash Course! Believe it or not, my first million pounds was not made from property investing, but from deal sourcing…
‘There is absolutely no reason why you cannot do the exact same thing too, I can’t wait to see you on this life changing programme.’
Now however, with his unique and empowering methods, Samuel is teaching prospective investors how to make their millions… just like him!
Who are the Crash Course success stories?
Kyle Huckerby and Thomas Lowe
Friends Kyle Huckerby and Thomas Lowe who trained on Samuel Leeds’ academy have found their niche in property, using the rent-to-HMO strategy to make a full-time living. The entrepreneurs also sell deals to investors.
In February alone, they made a total profit of £15,000. Still only in their early twenties, they control 43 rooms in Leicester, Nottingham and Coventry and are about to open their own letting agency.
Jess Moss and Joe Madigan
A young waitress was working punishing hours when she met a man and fell in love with him. Now they are having a baby. It is an everyday story, except that Jess Moss is only 19 and she and her partner Joe Madigan are financially free from property.
In just one month, the couple, from Liverpool, recorded a profit of £16,000, using strategies such as rent-to-rent and selling deals.
They also own a staging and management business and are now attracting overseas investors keen to cash in on their expertise.
Martin Adams
Property entrepreneur Martin Adams could have retired after his first venture. He moved out of his house and rented out the rooms, giving him a passive income that pays his bills.
But rather than sit back and do nothing, Martin branched out into other investment methods after joining the Samuel Leeds Academy in March 2023.
Now the entrepreneur provides temporary accommodation for people having work done on their homes on insurance. He has also just sealed his first lease option agreement.
So what are you waiting for? Book NOW to start your future as an investor – and to find financial freedom for the rest of your life
The property market has found more stability in recent months, with house prices on the rise this year.
The latest House Price Index from Rightmove released today shows prices have continued to increase and selling times have dropped. However, buyers and sellers have been warned this could cause sales to fall through.
The average property price has increased 1.1 per cent and now sits at £372,324. This is only £570 short of a record high from May last year.
This is driven largely by “top of the ladder” properties, like large family homes, as these now cost an average of £682,661 – up more than £18,000 on March 2024.
Properties are selling more quickly
GETTY
Both buyers and sellers have increased activity and houses are selling more quickly than before.
Speaking on the report, co-founder of Home Sale Pack Ruth Beeton said: “As buyer demand continues to climb, so too has the asking price expectations of the nation’s sellers.
“However, the real positive to take is that, at 64 days on average, homes are selling at their fastest since November, indicating just how much buyer appetites have improved.
“In fact, the average home is selling 18 per cent faster than in January alone and that is the factor to watch here as faster sales mean even higher prices in the coming months.”
However, the expert warned faster selling prices could mean there is a higher risk of sales falling through and she urged buyers and sellers to be wary of this.
Ruth continued: “The downside is it also means an increased chance of fall throughs as the industry struggles to cope with the increasing strain placed on the archaic conveyancing process, in particular.”
Rightmove’s director of property science Tim Bannister weighed in on the research.
He said: “The top of the ladder sector continues to drive pricing activity at the start of the year, with movers in this sector typically less sensitive to higher mortgage rates, and more equity rich, contributing to their ability to move.
“While some buyers, across all sectors, will feel that their affordability has improved compared to last year due to wage growth and stable house prices, others will be more impacted by cost-of-living challenges and stickier than expected high mortgage rates.
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Sales could be at higher risk of falling through
PA
“Despite these factors, it has been a positive start to the year in comparison to the more muted start to 2023. However, agents report that the market remains very price-sensitive, and despite the current optimism, these are not the conditions to support substantial price growth.
“Sellers who are keen to secure their sale will still need to price realistically for their local market and avoid being overambitious at the start of marketing to give themselves the best chance of finding a buyer.”
This comes as a property expert shares advice for those looking to sell. He explained simple DIY updates can boost the value of your home.
Buying agents excel at gaining access to houses of which there’s nary a whisper on the market.
‘Most clients come via word of mouth,’ says Guy Meacock, director of Prime Purchase. ‘The wealthy are used to getting advice, based on experience. Shouldn’t that be even more the case when it comes to your home?’
In the mid and upper echelons of the housing market, buying agents are familiar faces, quietly navigating highs and lows on behalf of their clients. In the Cotswolds prime country-house market, for example, 50% of transactions above £2 million involve buying agents. This proportion rises to 80% for homes of £10 million and over, says Jonathan Bramwell, head of The Buying Solution.
An ability to scour the market for time-pressed buyers is one of the buying agent’s trump cards, complemented by local knowledge and a little black book of contacts. Often, they come up with homes that are marketed discreetly — or not at all; 67% of houses bought via Prime Purchase last year were off-market, says Mr Meacock.
‘We know the best houses in the region and we can create opportunities,’ adds Mr Bramwell. ‘There are the so-called Ds that drive the housing market — death, debt and divorce — and we are (sadly) plugged into that.’ And although ‘we get clients through the doors before anyone else,’ adds Jamie Freeman, director at Haringtons UK, ‘our biggest value add is to ensure access to the whole market, so no stone is left unturned’.
Once a property is found, the buying agent’s role includes assessing its value and negotiating the deal. They act purely for the buyer, whereas the selling agent represents the seller. This is where they really prove their worth, says Henry Pryor of Pryor & Co. ‘A buying agent can evaluate a suitable property dispassionately, because we haven’t fallen in love with it.’ Nigel Bishop of Recoco Property Search agrees. ‘Buying agents are often in a stronger position to secure a property below the seller’s asking price, as they are quickly able to spot weak points.’
There are good discounts to be had in the housing market, too, adds Jason Corbett of Rowallan Buying Agents, with ‘many sellers lowering their expectations’. In short, buying agents hold their client’s hand throughout the process. ‘We want to ensure that the right price is paid and we make it through to completion,’ says Mr Freeman.
Not merely the preserve of the rich, although clients are ‘often well-known personalities or influential business people, increasingly, they are normal families that might be relocating from abroad or simply value a good-quality service,’ explains Mr Corbett. Either way, ‘many clients don’t want people to know their business and, if discretion is lacking, it’s best to avoid that agent’.
Some buying agents are easy to find, such as those owned by major estate agents, (Prime Purchase is Savills’s, The Buying Solution is Knight Frank’s and so on); others are smaller scale. The best way to find a good one is through recommendations. Mr Bishop advises buyers to look for someone ‘who really understands their requirements and with whom they feel comfortable. Experience is the most important factor, says Mr Corbett — ‘followed closely by industry connections’.
‘There are a lot of desktop buying agents and a lot of brokers trying to buy and sell,’ adds Mr Meacock. ‘But in terms of pure-breed buying agents who do only that, there are still very few. We can probably count on two hands the number of companies that we would consider viable competition.’
Of course, a buying agent’s service comes at a price. They often charge a retainer fee and commission based on the purchase price, between 1.5% to 3%, plus VAT. Other cost structures include ‘pay as you go’ and fixed fees. Either way, ‘we often save far more than our fee,’ says Mr Meacock.
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Jeremy Leaf, north London estate agent and a former chairman of the Royal Institution of Chartered Surveyors, said the housing market is still “playing catch-up” as the increase in new enquiries emboldens sellers to not only make their properties available, but chance their arm at higher asking figures.
He added: “The prospect of more stable or even falling mortgage rates is certainly helping to improve confidence generally.
“However, the uplift in supply has meant more choice, so the market remains price sensitive and buyers are negotiating hard – particularly those who require little or no finance.”
Rates peaked in July 2023, reaching 6.86pc, but have since fallen. The average two-year fix sits at around 5.83pc, while the average five-year fix is more like 5.40pc according to data firm Moneyfacts.
But in more recent times, mortgages have begun to edge up again as higher-than-expected inflation figures cast doubt over the likelihood the Bank of England will cut interest rates before the summer.
Tom Bill, head of UK residential research at Knight Frank, said changing economic predictions mean buyers and sellers “have faced mixed messages” this year, which may mean asking prices aren’t achieved.
He said: “While rising asking prices show seller expectations have improved, there is broader downwards pressure on prices as mortgage rates edge higher, supply increases and a wave of people roll off sub-2pc fixed-rate mortgages agreed in early 2022.
“The result is more friction around prices, particularly when a rate cut seems to move further into the distance with every release of economic data. That said, higher supply means there should be a recognisable spring bounce in the housing market.”
Nick Mendes, of mortgage brokerage John Charcol, said he had noticed a “slow down” of activity in recent weeks as mortgage rates stagnate and some buyers wait eagerly for a Bank Rate reduction.
He added: “We did see a lot of people entering the market earlier on in the year to beat the summer rush. Some house prices were reflecting the highs we saw just a few years ago.
“Some people will have stretched themselves, now unable to renew their rate in the current market and trying to downsize without losing on their property value.
“Always take asking prices with a pinch of salt; look at Land Registry prices for what [properties] were actually sold for.”
Former Married at First Sight stars Jules Robinson and Cameron Merchant have walked away with a cool $150,000 after offloading their Gold Coast investment pad.
The glamour couple, who met on the Channel Nine show in 2018, purchased the cosy two-bedroom, two-bathroom townhouse in Mermaid Beach for $700,000 three years ago.
Located just minutes away from Nobby’s Beach, the residence is situated inside the Diamond Sands residential complex.
Robinson, 43, and Merchant, 40, did an upgrade on the efficient beach cottage, which was quickly listed as a rental after the recent sale for $690-a-week.
According to the realestate.com, the home has now been leased after it was secured with a bond of $2760.
Features of the apartment include a spacious open-plan design and a large patio off the main living area.
Meanwhile, the large main bedroom offers a walk-in wardrobe, and there’s also a modern kitchen with plenty of storage space.
Built on what was once a caravan park, the Diamond Sands residential site was created in 1994 and hosts villas, townhouses and units.
Surrounded by palm trees, the complex offers residents ‘resort living’ including a ‘lagoon style’ swimming pool.
Robinson and Merchant are one of the most successful couples to come out of Married At First Sight.
And the glamorous couple have cut a high-profile with the real estate portfolio.
The pair, who live on Sydney’s north shore, purchased a home on the Gold Coast in March, 2022.
Located in the much sought after Broadbeach Waters neighbourhood, the couple splashed out $3.65million on the six-bedroom, five-bathroom spread.
The pair, who officially married in November 2019 and welcomed son Oliver in September the following year, bought their beachside Sydney pad in Cromer for $1.8million in 2020.
In February, the pair announced they were expecting their second child.
Speaking to Stellar Magazine Robinson said they could not be happier.
‘We’ve been trying since our son Ollie was one and he is now three-and-a-half. We were going into 2024 thinking, “If it doesn’t happen, we will look at IVF”,’ she explained.