The first domino has fallen in Australian property

👉 Want to buy BEFORE the data shifts, not after? Book a FREE strategy call with Curtis here: https://rebrand.ly/chatwithflintinvest One of Australia's biggest developers has gone into liquidation carrying $3.2 billion in private credit loans that won't be properly repaid. Every headline since has asked the same question - is this the first domino in an Australian credit crisis? I don't think it is, and this episode explains why. Curtis arranges this funding for a living, across 20 to 30 private credit providers, so instead of speculating we walked through the actual mechanics. What private credit is, why the big banks walked away from funding developments, and how a $60 million project quietly becomes a $75 million problem with two lenders, mezzanine debt at 20% and an end value that never moved. It turned into an accidental masterclass on how development finance really works, and it ends somewhere more optimistic than the headlines do. What you'll learn: 📍 What private credit actually is, explained simply - lending arranged outside the banking regulatory system 📍 Why CBA and NAB have effectively exited construction funding above a duplex or triplex, and who filled the gap 📍 The step by step anatomy of a development blowing up - cost inflation, a second lender, rollover fees and an end value that stayed at $100 million 📍 Why roughly $100 billion sits in private credit tied to Australian property development, and how fast that's grown 📍 The one condition that would actually make this dangerous, and why I don't think Australia meets it 📍 How diversification and dual arms let a private credit book absorb a default without breaking 📍 Why developer collapses are arguably bullish for prices - fewer completions means less supply into a housing shortage 📍 Where the real risk sits for buyers who've paid a deposit on an unfinished pre-sale Subscribe for a data-first read on the Australian property market every week. #AustralianProperty #PrivateCredit #PropertyDevelopment #PropertyInvesting #HousingCrisis Chapters 00:00 Will private credit cause Australia's next crisis? 00:45 A $3.2 billion collapse and the first domino 01:33 What private credit actually is 03:26 Explaining it to a 5 year old 03:56 The questions these lenders ask - and don't 05:02 The $60 million development, step by step 06:45 Cost inflation blows the budget open 07:48 What's better than one private credit loan? Two 08:32 Rollover fees, delays and a doubled project length 09:44 The end value never moved 10:43 The developer behaviour nobody talks about 12:25 $100 billion and how fast it grew 13:35 Borrower risk and what the underwriting misses 14:58 Who's funding the funders - super funds and investors 16:25 Why I can't see this becoming an Australian crisis 18:31 Concentration risk and the 60 storey tower problem 20:11 Backing housing in the middle of a housing crisis 21:03 Diversification is how the risk gets managed 22:41 The summary - noisy and scary, but solvable 24:29 What happens to buyers who've paid a deposit This video is provided by Confidence Finance Pty Ltd (ACL 488313) & Flint Trademark Pty Ltd. This is general information only and not personal advice. Please seek credit advice from us directly and independent tax, legal or financial advice where appropriate.