Australian sub prime mortgage market.

Nike to "slash" 1400 jobs!!

Slash!! Lol lol lol!

"The layoffs, representing four per cent of the US-based company's 35,000 workforce."

They forgot to mention that it is really 0.4% of their entire workforce. They have another 315,000 employee's in Nike 'sweat shops' all around Asia!

http://money.ninemsn.com.au/article.aspx?id=749963

 

MQG $18.48 When will it end?

 

simple Scott..........0.00

 

Hope not, if it does there will be major pain out there beyond MQG.

 

correct, and we havent seen the last of it yet

 

I think..... 0!

edit: Goobs beat me to it!

 

hard times ahead.

 

rubbish. Super low interest rates. Lucky enough to be in a recession proof profession. Let the good times roll

 

as long as employment holds we will be OK.
In melbourne under 500k property holding up well.
Last couple of weeks we are picking up more work,and I'm in the heart of the fire.

 

Yep, people with secure income (but what is secure these days ?) seem to be in a good position, yet the evidence seems to suggest they have also reduced their spending. The situation in Australia for the past 6 months has been that consumers have cut back , acting as if they were already unemployed and saving every cent, even though so far there has been little real increase in unemployment.

Local R/E market has picked up again for sub 500k houses too, but I don't think this will hold, my guess it's a spike caused by 1st home buyers jumping in to the market with low interest rates, and some new investors chasing higher yields than bank interest.

M

 

true story.Client purchased in Brighton a property with a bulldoze house on it ie land value.Last Sept paid 1,500,000.Just had it valued this week at 1,600,000.
The valuers were aware of its purchase price ,which was at public auction.

 

That's OK considering the current economic climate, just shows that a quality location always does better, and they probably bought well too.

But the stamp duty on 1.5m is what, about 80K ? so they are pretty close to even, or a slight loss if they sell for 1.6M, because there will be agents or auction fees (25k??). And that's not taking in to account the interest paid or opportunity cost on the capital.

M

 

no keeping it and building a home on it.Paid cash for it,now borrowing to build.
In kew the market is strong,few homes for sale but those for sale are selling with good results.

 

OK, this is second hand info, but interesting none the less. I was chatting with one of my friends today who's mate is the person or one of the persons that liase with the banks when they reposses a house. That is kind of my vague understanding of his job.
Anyway, he said that in the last several months he processed over 200 repossetions in Brighton but the banks don't want to put the houses on the market so they don't flood it, so they rather keep them empty right now.
Also, Brighton price average has gone down 22% and Hampton next door 12% (I haven't checked these, but they seem reasonable from what I observed).
Also, 38% of Brighton private school fees are way overdue.

One of my observations - one street over they built a new 2 story 4 bedroom house. Not a single bid at auction. Price dropped from $1.8mil to $1.2mil during 3 months and still no bites. Now it's been up for rent for the last 4 months. Asking only $800/week and they can't rent it. And it's much better than the house that I am renting for $1,200/week, one street over, but I signed the lease right at the peak in july last year.

 

1200 p/w..........man thats a mortgage

 

Very interesting stuff mate!

That is top dollar rent, I hope its a nice house you are living in!

 

its crap that you have been told.
i know several business bankers in that zone and have asked a few times,they just shrugg and say not to my knowledge.
ree the school fees, have heard that one school is owed about 2 million so ie divided by say $18,000 k per child that is 111 kids.Most private schools have a population of about 1,800 so that is 6% in default.
Mercedes Benz Melbourne delivered more cars in January then the previous years same time.
As a guide i rang a buyers advocate a month ago ,said I wanted a property to the value of 2.5 to 3.0 in Kew (kidding) still no answer and we talk once a week.
Over the years my firm has done many properties around the prestiage area and managed the loans,I'm not seeing huge repo's.

 

Yes, but it wont cover the $12 mill mansion that he wants to build!

 

the 1.2 million property was that in Brighton? seems cheap for a new home of that size.

 

$4800 per month, = only $577K @5.95% over 25 years, probably not enough to get you in to 1.2 M in Brighton though.


M

 

what happened to the blood bath? have you become a property broker?

 

LOL, you got him there.