It can’t be good when Harry Triguboff- the eternal optimist usually- gets worried.
http://finance.news.com.au/common/story_page/0,4057,8242846%255E462,00.html
kay henry
He is talking about off the plan purchases.
Anyway I doubt he is too worried. What others see as a calamity may be an opportunity to Mr Triguboff allowing him to pick up bargain development sites because of lessened competition.
I cannot quite see where the banks come in with large losses.
Where a loan isn’t in place as yet there is no risk to the banks.
The mortgagebond suppliers, well that is something else again.
Pisces133
Isn’t Meriton one of the companies that will ‘vendor finance’ you into a property? I doubt that Trigubof is really worried – from what I recall Meriton do not borrow from banks, they are completely self funding.
If some of his sales do fall over, either he could finance them himself, or take the deposit, and then onsell them again, perhaps making more money than before. Either that, or I’m sure he could afford to hang onto them almost indefinitely.
Cheers
MelI said:
“the eternal optimist usually”… well, that doesn’t quite make sense- he is either “eternally” an optimist or “usually” an optimist- he can’t be both! hehe. But y’all knew what I meant
kay henry
Interesting site and interesting article, thanks.
I think Mr T is clever enough to personally keep out of trouble but the domino effect for the banks of some of these large complexes are that if they are devaluing due to large no.’s being sold simultaneously and hence cheaply then their security is devalued and any investors or unit trust groups etc that default on their loans leave the banks in bad debt land, and with more banks self-insuring these days (Westpac loans now 100% self-insured as of last week for example) then they can quickly get in trouble. Where external valuers have been involved they too got lined up and shot by the lender mortgage insurers and start pegging back valuation figures to cover themselves … and so on and so forth. [
] [}] []Good to see Vic is still breaking development approval records for multi-dwelling approvals too! [
]Interesting times ahead – I always take heart from the investors I meet who’ve been in the game for 20+ years and just say ‘do your homework and keep going’.
Merry Christmas to all the goers!
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Mel
[email protected]“Mr Triguboff said it was a “bank-created problem which could become very serious”.”
Is this an excellent example of buck passing or am I missing something? Bank lending criteria is so strict already. Surely it is more on the shoulders of those buying the property to follow though with their commitments? And the developers can’t be without blame for creating so much oversupply.
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Speaking of dominoes, this is an article I just read.
http://www.jenman.com/NewsArticles1.php?id=65
I am not sure I agree that so many will walk away, (or maybe it’s hard to believe and I need time to disgest it all) but it is surprising that so many people bought when all the signs should have been clear to them.
Says something about the sales skills of the developers, eh? Are they to “blame”?
In this case, I think – with most of these off the plan sales – that the buyers have to be responsible.
Again, one would need to know what they were told, but it must have been pretty obvious.
Hindsight, eh?
Why can’t we all place a bit more emphasis on foresight.
Cheers
Bec
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