Wake-up call for investors

[roe]

More than 1000 investors are facing upwards of $75 million in losses from the collapse of two companies specialising in property investments and developments, specialists involved in the clean-up say.

http://www.afr.com/p/personal_finan..._investors_in_property_ADyFddij1sP0SVospvQGwM

 

[datto]

there's only 3 lines to read lol

 

[roe]

AFR is subscription only, they have a freebie article here and there but you
have to be a subscriber to access most of the articles.

I dont know which one are free or locked as my browser automatically log me in when I go to afr.com

sometimes you find the same article free on their sister sites like theage or smh

 

[datto]

must be locked.....I'm too much of a tight wad to subscribe.

 

[DaveM]

must be locked.....I'm too much of a tight wad to subscribe.

You can take the boy out of the druitt but you cant take the druitt out of the boy

 

[datto]

You can take the boy out of the druitt but you cant take the druitt out of the boy

Fair go, I can't seem to jimmy open the article

 

[DaveM]

Fair go, I can't seem to jimmy open the article

Have you tried popping the lock with a sliver of metal? Theres prob a decent Sony Xplod head unit inside

 

[datto]

Have you tried popping the lock with a sliver of metal? Theres prob a decent Sony Xplod head unit inside

With speakers and woofers? if I get it out they're yours for fifty!

 

[Rhinsor]

Might be this

http://www.propertyobserver.com.au/...arterhill-owes-11-5-million-to-creditors.html

 

[datto]

Thanks RJD

Moral: don't trust other people with your money.

 

[vaughan]

IMHO there is a B-I-G difference between buying investment properties, and buying shares in companies that buy investment properties as their business model.

 

[D.T.]

Sensationalism again

 

[strongy1986]

Ok the article is rubbish

But the title got me thinking

A lot of people I speak to and even a lot of 'newbies' on here seem happy to spend their money on anything just so the can have that peace of mind that they have invested their money.
They buy overpriced new apartments , house and land packages and majority do not grasp the concepts of supply and demand and land appreciates / building depreciates
They tick the wrong side of both equations

What % of investors would be in this boat , would it be 50% or greater? Remembering that a lot of people on here are more informed yet you still see some ridiculous posts about people asking for advice on a house and land in the sticks that a developer said was a good thing
I think we may start to see a lot of people losing money over the next few years, I know it's already started , will the banks bring in some control measures to protect their loans?

 

[Scott No Mates]

Even the set and forget crowd buying DHA are guilty of this. Fortunately shouldn't go bust.

 

[Spades]

How did the company collapse?

Did George Nowak siphon off funds or bad investment choices?

And George has filed for bankruptcy in July and he's still a practicing member of the Australian Institute of Chartered Accountants?

 

[Moneyman_85]

what I dont get is why the "new people" to the forums ask about where to buy a $5-600K property for a first investment

Possibly they have alot of equity/money but why buy 1 asset worth that much?

 

[BayView]

what I dont get is why the "new people" to the forums ask about where to buy a $5-600K property for a first investment

Because we are in a fishbowl here on SS...not of the normal world of folks.

 

[Moneyman_85]

Sounds like an every day normal person strategy to me

Buy new 2 bed unit for $500k rent out.

For that money good if it's a big lot of land with future potential