Australian Idol judge Kyle Sandilands enters money-lending business with ZeroBonds
Radio king Kyle Sandilands is helping people pay their rental bonds amid Australia’s housing crisis — but not everyone is happy.
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Radio king Kyle Sandilands has entered the short term money-lending business, helping people pay their rental bonds amid Australia’s housing crisis.
ZeroBonds opened its website for business a fortnight ago, pitching to cash-strapped renters who want to sign a lease but cannot afford the set-up costs.
Under the model, they are charged a one-off sum of 14.5 per cent of their bond amount, plus a $24 application fee — which on the average current rent of $600 a week equates to about $370.
And, once paid, ZeroBonds guarantees to pay the landlord if there’s damage to the property.
Sandilands’ foray into the rental market is an extension of his diverse business portfolio, which includes drinks manufacturing and TV production companies, as well as a music label.
Sandilands also has an impressive car collection and extensive real estate holdings, with multimillion-dollar properties in Glenorie, north of Sydney, and Robertson, in the southern highlands.
He most recently purchased a slick four-bedroom mansion in Vaucluse, in Sydney’s eastern suburbs, for $14m which has a glimpse of the harbour from the upper floor.
Sandilands’ stake in ZeroBonds is 95 per cent, while company chief executive, Hedley Hilton, owns the other 5 per cent.
Mr Hilton said Sandilands started the business to help people.
“Kyle has made it very public about a period of time when he was homeless,” Mr Hilton said.
He said bond money was better off in people’s pockets rather than sitting in government coffers, pointing to $1.6bn in bonds held in NSW alone.
“It really is there to help people who don’t want to pay a bond – who wants to pay a bond if they don’t have to?
“People are really cash-strapped at the moment, the cost of living is going up – I got my electricity bill the other day and nearly fell over.”
The company’s terms and conditions include that customers must agree that they will not “denigrate or complain about ZeroBonds’ service”.
“The reason that’s there is because we want the right to fix the problem first,” Mr Hilton said.
Consumer advocates warn that because the business isn’t covered by credit or financial services laws, customers may be missing out on protections such as the ability to take disputes to an independent tribunal.
But Mr Hilton said ZeroBonds had legal advice that it didn’t need a credit or financial services license.
He also said it wasn’t fair to compare the 14.5 per cent fee to an annual interest rate because it was a one-off payment on a lease that could run for years.
Chair of the Consumers Federation of Australia Gerard Brody wants the Australian Securities and Investments Commission (ASIC) to investigate whether ZeroBonds and similar services were offering credit.
“Substantively it is acting like the company is advancing you funds which goes towards your payment of your bond, and for that you’re paying a fee,” Mr Brody, a leading consumer lawyer, said.
“So from that perspective, it is credit and so at least ASIC should be scrutinising whether this business model is one that should be licenced.
“Businesses are meant to get a licence from ASIC before they arrange credit, where they’re making a charge for that credit.”
An ASIC spokesperson said the regulator “has reviewed the available information on ZeroBonds and at this point has not seen evidence that requirements per the Credit Act apply to the business”.
Mr Brody suggested people struggling to make a rental bond payment instead investigate state government subsidy schemes or low-interest loans available from charities.
Chief executive of debt relief charity Wayforward Fiona Guthrie said borrowing money from ZeroBonds was “a terrible idea”.
“If you can’t pay your bond, how are you going to keep paying your rent?” she said.
Mr Hilton said that based on overseas experience, ZeroBonds needed to cover about 20 per cent of the rental market to make money.
“I certainly won’t be driving my next Rolls Royce out of ZeroBonds, I can assure you,” he said.
Mr Sandilands was approached for comment.
WHAT THEY’VE GOT
Kyle Sandilands, 52
Business
ZeroBonds, a business that lends bonds to renters at high interest. Sandilands owns 95 per cent.
Nueva Drinks Co, maker of ready-to-drink sangria Nueva, which is billed as being “as sophisticated as you want it to be”.
Crypto Castle, a TV production company with Jake Hargreaves, who worked on real estate reality show Luxe Listings, that has been working on a series about investing in cryptocurrencies.
3Keys, a record label where his employer, ARN, also holds a stake. Released an album by Sydney DJ Yaz in 2021 but has been quiet since.
Property
Glenorie mansion, bought for $3m in 2022
Eight bedrooms, five bathrooms and a pool grace this country pile, 44km northwest of Sydney.
Robertson retreat, bought for $2.98m in 2018
In the NSW Southern Highlands, this farmhouse-style property has five bedrooms, three bathrooms and a tranquil pond.
Vaucluse mansion, bought for $14m in January
A pool, multiple decks and a glimpse from the upper floor of the water – Sandilands’ most recent purchase is a slick modern mansion with four bedrooms in one of Sydney’s fanciest suburbs.
Cars
Sandilands has a luxury car collection worth more than $5m. He has more than 10 cars including a Rolls Royce, a Bentley, a Lamborghini and a $250,000 Cadillac he bought last year.
Jackie O, 49
Business
Besties, a business she set up with her agent, Gemma O’Neill, last year that runs a website billed as “a space where best friends come together for exclusive guest speaker events, private holidays and luxe products – all for you and your bff!”. It offers a limited range of Besties-ranged merch and events ranging from a sold-out weekend away for International Womens Day for $900 all the way to a “leadership retreat” on Fijian private island Kokomo in September that costs $9900 for four nights.
Property
Clovelly bachelorette pad, bought for $13.25m last year
On the oceanfront a short walk to Clovelly beach, this older three-storey house is getting knocked down and rebuilt into something fancier. She bought it at auction last year from investment banker Keirin Deeming.
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