Property owners say they feel betrayed and have lost thousands of dollars after Victorian building company Watersun Homes was placed into voluntary administration.

Rodgers Reidy in Melbourne was appointed as administrator for Watersun Homes on Tuesday and said the company did not have the funds to continue trading.

The insolvency firm said 90 full-time staff at the company had been told they had lost their jobs, and 300 building projects across the state were now in limbo.

Sarah Sims and her husband signed a contract with Watersun Homes 16 months ago and said they had been waiting ever since for construction to begin on their Geelong property.

"We actually put it to them in writing a few times to say, 'We've heard these rumours. What do you say about them? We want to get out of our contract because we don't believe our house will ever be built,'" she said.

"Their response was that we had to follow through with our contract or they would take us to court."

Ms Sims said she was worried about taking legal action against the company at the time.

Buyer left in limbo, without home

She said she handed over about $15,000 to Watersun Homes, but would try and find other another builder to complete the home.

"We've worked out that we're probably only going to lose about $7,000, which is better than a lot of other people, and not to mention the people who work for Watersun," she said.

Rodgers Reidy said property owners could be protected by the Victorian Managed Insurance Authority if a policy had been issued, but that depended on whether building had commenced.

Ms Sims said the last 16 months had been "horrible".

"We relocated, so we took our daughter out of her school to relocate down here. Now we're renting and sitting on this block of land waiting for a house to be built," she said.

"I feel really betrayed. We would have been happy to walk away from the contract and they're the ones that made us stay.

"Now we've handed over money and we're not getting our house because of it."

The administrators will attempt to sell off Watersun's assets, including the current projects.