Forum Archive Index - May 2002

[hugh webber <hugh.webber@clear.net.nz>]

But be careful - there have been several backgrounders in the media on
contributory mortgages over the last month or so and I seem to recollect
there were something like 20 or so such public schemes and about two
thirds are under investigation or ordered to be stopped by the Dept of
Economic Development. They usually depend on the real estate development
plan going completely according to plan, sales to be made according to
timetable at an optimistic price, the real estate market staying buoyant,
no development cost overruns, using supplier credit to the max, no interest
rate increases. 
When some of this doesn't happen then they miss quarterly interest payments,
are late paying back capital and are often wound up with a significant 
deficiency.
They are going for contributory mortgage money because they can't get it from
the bank or share capital.
But I do notice there are a few whose names are very familiar who have been 
around
for yonks, I think Lombard is one, and either they are better at it or manage 
to insulate themselves fairly well organisationally so the scheme failure 
doesn't
pull the parent down.
There are some well known NZ Financial Planners and newspaper and tipsheet
column writers who have got carried away and got their clients into a disaster 
in
very recent times.

cheers,
Hugh

----------
> From: Mike Hudson <mikehudson@clear.net.nz>
> To: sharechat@sharechat.co.nz
> Subject: Re: Re: [sharechat] Contributary mortgage
> Date: Thursday, 2 May 2002 13:17
> 
> Harry
> You could go to somebody like Money Managers or scan the Business section of
> the Sunday Star Times; there are usually several ads from promoters of
> contributory mortgages.
> Cheers
> Mike H
> ----- Original Message -----
> From: "Harry Jones" <h.jones@cowan.edu.au>
> To: <sharechat@sharechat.co.nz>
> Sent: Thursday, May 02, 2002 11:55 AM
> Subject: Re: Re: [sharechat] Contributary mortgage
> 
> 
> Thanks Dave or Helen,
> 
> I'm getting the idea that these things can be risky. The thing I don't know
> is : where is the market?
> Perhaps there is a broker who advertises to get the Mums and Dads to send
> their cheques or is there a coffee shop somewhere like the original stock
> exchange? :-)
> 
> Harry
> 
> 
> 
> 
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