This will be interesting…
Chinese Authorities Halt Virtual Credit Card Payments; Tencent, Yahoo Crashing
I've been buying a few K in stuff out of China through AliExpress for a few months now. About NZ$900 is still waiting to ship. Alibaba (a B2B) hub and AliExpress (a B2P) hub use Alipay to facilitate their hubs. This is like PayPal being suspended so you can imagine the angst going right now amongst customers with skin in the system but more importantly the 1000's of merchants who will be hanging out to get paid after shipping their goods. Payments sit in ecscrow and are released on confirmation from the buyer that they have arrived and are in merchantable condition.
I just did a US$3k deal with another Chinese manufacturer and we side stepped the Alibaba system for the sake of expediency. I wouldn't normally do this but for a few weeks now the hairs on the back of my neck have been up with regard to deals out of China.
Ali site's offer the Chinese manufacturers and smaller merchant facilitators (those doing smaller deals for the large run manufacturers enabling the sale of smaller quantities). Anything that damages confidence in their payment system could take a long time to rectify. To say this will be interesting is an understatement.
Free bump. It’s been few months. Anyone made any observations of the market lately?
I can only add that renting out houses becoming more difficult. Took us 3 months to find tenant for waterfront house, had to drop rent from $1,200 to $850/week.Several high level friends of ours are predicting worse to come. Low Doc home loans forclosurers are increasing at an alarming level, with one mortgage management company telling us that the only department in their group growing is the bank closure department. Credit card debt in australia is at new levels reaching over 30 billion dollars and people aren’t paying their cards off but opting to get new ones with lower rates then max them out as well, some thing has to give here! The Perth boom is about to go the other way with reports saying that the average house sale is now dearer than QLD who has a larger population base. Banks are tightening their lending criteria and the valuers are getting harder on vals of residential properties. I am interested in finding out how many people that read these threads are really positive and what you believe is a good investment to get into. D
Sorry I don’t have time to read all the responses but what is worth noting is the massive number of hits on your blog which tells me there is still a lot of negative sentiment out there. As a technical analyst I would offer this view. Your comments are hearsay that runs contrary to “property” advertising evidence which clearly shows a substantial decline in fire sales. Couple this ‘negative sentiment’ with the ‘evidence’ and my suggestion as a successful contrarian… is gear up @ 5%, dig out the last of the deals and then sit back and take a holiday :)
Vando | Surf&Yoga
Email MeExperienced property developer offers passive investment... 9.64% net PA, no gearing.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
