Landlords feel the pain..........

[Social_Media_NZT]

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10811818

"The president of the Auckland Property Investors Association, David Whitburn, said he knew of at least 40 landlords who had been bankrupted, and he did not see the situation improving"

This scares me !

[donna]

Real Estate Institute chief executive Helen O'Sullivan said the rising number of mortgagee sales could be reflecting a stronger housing market.
"Banks might be taking the opportunity of buoyant prices to release stock that's been lurking for a while."

I think this is a more likely explanation.

The US has still got thousands of properties to release onto to the market - I'd say our lenders are releasing a steady amount each year so not to flood the market and get max. return.

cheers,

Donna

[Davo36]

Yeah that's totally it.

Back in the '87 crash, the banks just foreclosed on anyone and everyone which actually only hurt themselves because they dropped property values very quickly. So they banks then lost out heaps.

So this time around they've all been propping up delinquent mortgagors, giving them interest free periods, capitalising interest and so on. And now that things have stabilised and property values are going up again, they can be more aggressive and sell their under performing ones without depressing the market.

Smart those bankers...

[Hec]

IN the US, banks are doing that now and have been for some time.
They know pretty much what properties are worth so at he foreclosure auction they hang for that value, and are getting it in most cases. (the buyers are there - with cash)
..as opposed to taking whatever they could at the start of the GFC

[JABlog]

Thats media for you - who to believe..
http://www.stuff.co.nz/business/mone...near-six-a-day

With a shortage of available housing stock, sales were strong and consents for new dwellings were also up, he said. Interest rates were also at record lows. "Anyone who has paid attention to Terralink data over last four years has been grossly misled."

[speights boy]

I wonder how many of these sales are a result of the family business, often funded through the house, failing.

[flyernzl]

From the tenor of the article, I think speights is on the right track.
It's problems with the family non-property-related business causing the foreclosure, not the property itself.

[donna]

And the commercial investors with retail properties laying empty and probably using the PPOR as security etc.

There must be many small business owners living on next to nothing with their business in greatly indebted and secured by their PPOR - desperate times.

[Austrokiwi]

I wonder how many of these sales are a result of the family business, often funded through the house, failing.

This is realitively easy to confirm.....usually the business is the fist to be bankrupted then the bank goes for the family home.....are family business bankruptcies up? I ask as I note the first post stating40 PIs being Bankrupted.

[freezinhot]

I wonder how many of these sales are a result of the family business, often funded through the house, failing.

I would agree with this one. I am in sales and see new businesses starting up all the time, a lot of money is thrown at setting it up, and a lot of times the business closes within 6 months, either because the owner did not know what they were doing or they did not do enough research on their target market etc...

I would say unless you know exactly what you are doing, stay well away from starting a business up. That is where property is so great, if you lose a tenant there are plenty more to fill their place, you need to stay on top of payments, maintenance, and your tax returns. Pretty simple stuff. Business is a lot harder IMHO.

FH

[drelly]

There was an article in the local paper a few days ago about the growing numbers of mortgagee sales. However, we have a surplus of sections up here and I think most of these sales are made up of those.

[RHarris]

From what I've seen alot are the multi-property owners. Alot the builder type investors. Would love to know the real reason behind this all.

[speights boy]

^. One reason may be no finance company willing to throw money at them via lo-doc, interest capitalising, easy rollover loans.

[eri]

would be interesting

to know the percentage of "mentored" LL's going under

or

like amway

would any failure be their own fault

for not following the "teachings" 24/7?

[Social_Media_NZT]

would be interesting

to know the percentage of "mentored" LL's going under

or

like amway

would any failure be their own fault

for not following the "teachings" 24/7?

Why is it that there seems to be so many members in here against Mentors and training ?

Is it a bad thing ?

Am I missing something ?