GET USED TO THE ROLLERCOASTER
Yesterday’s Herald on Sunday (2nd Sept) clinically reports that: “Consumer lender Five Star Finance went into receivership last week – the third finance company to collapse within nine days and the seventh to go under in 16 months”.
With 6 Finance House collapses reported prior to our last fortnightly Auctions (Wednesday 22 August) and 14 Apartments on offer, yours truly and all around him had a decidedly difficult Tuesday 21 August and hopefully shared a decidedly sleepless Tuesday night.
Where was the line in the sand to be drawn at 12.30pm Wednesday?
For the first Auction day in memory ALL the flags were out and ALL staff turned up early, although not much eye contact was made with the boss.
And some very heavyweight lawyers and financiers were in attendance.
It was extraordinary.
Thirteen out of fourteen suites sold under the hammer (with the last off my Leighton Smith ZB radio show the next day – 11.25am Thursdays on 89.4am).
Prices were firm - as if people had been reading my Comment and showing it to their banks and valuers.
I was happy.
Anyway, what is the point of this missive?
There’s going to be more bad news ahead but maybe, finally, we are being seen as a safe haven for those smaller investors who see: 1) No vacancy
2) Buying opportunity under replacement cost
3) Very few new units built for years due to the huge difference between current cost and replacement cost.
The only concern is – the supply of discretionary money for our market and the sentiment to invest it.
But are we concerned?
MARTIN
