In no particular order….
“THE Gold Coast has some of the worst performing suburbs in the country when it comes to mortgage delinquency, according to the latest Fitch report.”
From the local paper –
“SALES of more than $34 million have been racked up in the $850 million Soul supertower in Surfers Paradise. Property records show sales of seven apartments in the 77-storey tower settled at the end of last year for a total of $12.02 million. Since December, 17 new deals were stitched up worth $22 million. The highest-priced property was a $4 million two-level subpenthouse….”
I like the use of the phrase “stitched up” – bit of a byword for the Gold Coast sadly. This article rabbits on about “Sales Success” but its the very last sentence (that no-one really reads anyway) that tells the real story, and I quote, “…..serious buyers were returning to the market in the wake of a number of projects being relaunched with more competitive pricing structures.” Ha Ha Ha Ha – in others words – some serious discounting! The poor plods who paid full price are facing massive losses if they try to sell as the Receivers have effectively lopped 35 – 50% off the original value…Valuers are being told to go “super conservative” by their bosses..
Local papers are also full of how Millionaires Row in Southport in the so-called TSS (The Southport School) district is now the proper place to live for wealthy folk with reports of sales nudging $10m apiece. Again, there is some serious discounting going on but its hard to tell because the new owners, going back several years, have had their lawyers get suppression orders against data resellers so you can’t see what prices were paid unless you go the Valuer General’s Department direct. Interesting huh? But there are some details – I won’t name street numbers in case someone who lives there comes after me with an axe but some sales in that area are as follows. House A – March 2007 – $5.8million. November 2011 – $3.75 million and December 2012 – $3.0 million. Ouch! House B. July 2004 – $7.85 million and March 2005 – $6.0 million (and that was when the market was “rocketing”). House C. 2005 – $5.7 million and and this month $4 million and change (very small change). There is no more data available – little secrets huh?
I really “like” the blather about Ray White’s “THE EVENT” where there were sales aplenty. What they don’t and won’t say is that people were nearly passing out at the low bids and equally frightening low sale prices. Does anyone remember going to Olson’s Bird Gardens? What a pretty place on a gorgeous block of land. It’s 41 Hectares or over 120 acres in the old measure. It was bought in 2002 for $2 million and sold for just $851,000 including a liveable 4 bedroom home! Now that’s a bargain.
The Commonwealth Bank’s (CBA) profit has it scratching it’s corporate arse and nose for its customers are mightily pissed off. Shareholders of course, are delirious with the share price rise. The bank is talking about dropping rates independently of the Reserve Bank – now there’s a turnaround! In my humble opinion – anything to take the focus off the Bank itself. When the Bank finally either has to by regulation or the market forces it to reveal how many of its residential and commercial mortgages stink like a bag of old mullet, the share price will fall like Humpty Dumpty. Go to asx.com.au and take a look at the Chart! If I had a lazy $100,000.00 lying around I would “short” CBA to the max and ride that sucker to $40.00 or less this year! (Gordie’s prediction for CBA in 2013 – if I’m wrong, 10 strokes of the rattan!)