All Topics / Creative Investing / Cooling Market and Wrapping

Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of yackyack
    Member
    @yack
    Join Date: 2003
    Post Count: 1,206
    May 27, 2004 - 2:59 am

    Anyone experiencing any problems with their wrappees now that the property market is cooling?

    Anyone no longer keen to keep paying for a property thats gone down in value? Are there still wrappees interested in wrapping at the moment?

    Anyone forsee any future problems?

    Profile photo of darrenbdarrenb
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    @darrenb
    Join Date: 2002
    Post Count: 71
    May 27, 2004 - 3:37 am

    I did alot of wraps in the Latrobe Valley in the good old days when houses were 35-50k each and Geelong was awash with 60k houses.
    It always amazed me that some people got into strife in paying $90-$120p/w in repayments.
    With people wrapping homes in these areas at double and triple these prices, I am certain there will be blood in the streets in the next few years, if interset rates no doubt increase.
    I still do the occasional wrap, but their is no doubt, that its getting harder and harder to find the perfect client. eg one with enough hurt money.

    Profile photo of pelicanpelican
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    @pelican
    Join Date: 2003
    Post Count: 454
    May 27, 2004 - 2:11 pm

    Darren,

    Sorry but I dissagree with you…. we are wrapping quite nicely at the moment…..

    We are having trouble keeping up with demand….

    It’s all about how you buy… and obviously where….

    Cheers

    Scott

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    May 27, 2004 - 9:03 pm

    I totally agree with Scott.

    If a dozen deals a week is a slowing market i hope things dont get busy again.

    We are looking at taking on further assessors to keep up with demand.

    Cheers Richard
    richard at fhog.com.au
    http://www.fhog.com.au

    There is no such thing as a problem.
    Just a solution waiting to be found

    Richard Taylor | Australia's leading private lender

    Profile photo of darrenbdarrenb
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    @darrenb
    Join Date: 2002
    Post Count: 71
    May 28, 2004 - 5:26 am

    Are you guys getting people with at least 6-7 grand hurt money excluding the FHBG?
    When I see numerous adds in the paper (in melb and geelong) that say NO DEPOSIT, that were I believe there will be blood in the streets if interest rates rise. (My opinion only)

    Profile photo of pelicanpelican
    Member
    @pelican
    Join Date: 2003
    Post Count: 454
    May 28, 2004 - 3:15 pm

    Darren,

    Yep, FHOG + Hurt $$$…..

    But if you want to stay out of the market, leaving more for us, thats fine by some of us !!! [lmao] ( just kidding [laughing] )

    Again…. RISK MANAGEMENT is your key issue….. Not saying jack up prices or anything like that…. I’m saying if you follow your systems, ensuring people can easily afford the payments, and, they are OK people…. then you manage quite nicely…..

    Experience plays a good part in this…. as you know…..

    Scott

    Pelican Investments
    http://www.pelican-invest.com

Viewing 6 posts - 1 through 6 (of 6 total)

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