Real estate agency crashes
Company ‘won’t be last to go broke’
THE head of a boutique real estate agency that’s gone into liquidation says his company will not be the last to fail this year.
Real estate agent Damien Waters created Luxe & Co in 2019 with a view to launch and expand in 2020 – but then the pandemic hit.
The company behind the business, Property on Demand, went into liquidation on Tuesday, with David Hambleton of Rodgers Reidy appointed liquidator.
The Luxe & Co business itself, based at Hope Island Central, has been sold.
Mr Waters said market con
“We were in a really good situation because the market was on fire – but then it was just gone”
REAL ESTATE AGENT DAMIEN WATERS
ditions had been the downfall of his company.
“We were in a really good situation because the market was on fire – but then it was just gone,” he said.
“We had this activity like you wouldn’t believe – but now, if you get three or five people to an open home you’re doing well.
“You can’t pay bills on wind and a prayer.”
Mr Waters said property management and listing clients of the business could expect a seamless transition under its new management, which was relocating from Hope Island Central.
Mr Waters said renewed enforcement measures from the Australian Taxation Office would see other small companies struggle.
The ATO halted chasing unpaid tax in the depths of the pandemic and was owed $44.8bn at the end of June 2022 – mostly made up of selfdeclared debt like withheld GST, PAYG from staff wages and unpaid superannuation guarantee.
The office recommenced its small business debt collection last year. “(The ATO is) heavier than ever and they’ve got a big stick,” Mr Waters said.
“I see that there’s going to be potential for even worse because they’re actually causing issues, and that’s across the board with people I’ve spoken to in and around the industry.”
Mr Waters said his company did not have any major creditors or liabilities and that his staff had moved on late last year.
“They couldn’t wait around for things to get better, they had bills to pay too,” he said. “It’s a pretty tragic event. “It’s an unfortunate byproduct of market issues and adjustments in a marketplace that was already on tenterhooks.
“I just don’t think we were fully prepped for it.”