Liquidation of housing developer Zealous Group leaves trail of victims across southern suburbs

Devastated Melbourne families have spoken of ruined lives, lost dreams, years of frustration and hundreds of thousands in lost income after a failed developer abandoned their unfinished homes.

Sue’s in front of her unfinished townhouse in Bentleigh East. Picture: Josie Hayden

The liquidation of townhouse developer Zealous has left a trail of distraught property owners across Bentleigh East, Murrumbeena and Hampton.

Zealous Group, which specialised in upscale developments across the inner south, was last week appointed a liquidator by the Federal Court.

Zealous’s fall comes after the founders of large-scale developer, Steller, announced they were dissolving their partnership, and started selling off assets and fired 76 construction staff.

Bentleigh East mother Daphne Carmi has been waiting for two years for her dual occupancy homes to be built on Rowan Avenue so her husband, son’s family and 96-year-old mum, a Holocaust survivor, could move in.

Ms Carmi said she had planned to retire once the homes were complete.

With their townhouse developer liquidated, Eitan and Daphne Carmi’s home and future is in limbo. Picture: Josie Hayden

She said she would now be forced to work for many more years, with her future unclear.

“Lives have been ruined,” Ms Carmi said.

“(But) we’re one of the luckier ones — there are families with small children (and) couples who have been thrown into financial ruin after putting all their money into this.

“It’s heartbreaking.”

Eleven unfinished homes in Bentleigh East, Murrumbeena and Hampton have been abandoned.

Work began on Ms Carmi’s houses in January last year, but the property is just a pile of timber with no roof that will need to be pulled down.

Bentleigh East’s Sue, who did not want her name used for fear of legal implications, has waited two years for Zealous to build her dream home.

She said she had spent $200,000 — only to be left with a dirty worksite, house frame and slab with 43 structural defects.

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Sue and her husband are renting a home in a nearby street until their Beddoe Ave home is finished.

She said the couple had been sold broken promises since the beginning.

“We will get the money back through insurance but the hardest part is being in limbo and having no idea when you’ll get into your home,” Sue said.

“We haven’t unpacked at the rental place for two years because we’ve been waiting … and no builders are willing to take the risk and come and pick up the pieces left by Zealous.”

Sue said the company’s director constantly delayed works, ignored requests for information, and wanted to charge the couple $17,500 after laying too much concrete on the site.

“It was problem after problem and there were never workers there for more than a day at a time,” she said.

“It took 78 days to get the permit and we were told it would take 12 months to build but (after that time) they had only laid the slab and put up the frame … which doesn’t even match the slab.”

A “rebranding” website states Zealous “aimed for overall excellence in the building of residential homes, dual occupancies, apartments and commercial developments”.

They also took out first place in the HIA 2016 Award for the Townhouse/Villa Development category.

The company’s main office phone number has been disconnected and a director is yet to respond to the Leader’s requests for comment.