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KIWI FINANCE COMPANIES COLLAPSE

WHO WILL BE NEXT

KIWI FINANCE COMPANIES----

But whats the future look like for those already heavily committed & finance companies ability to invest successfully

  • 1/. April 2010: Vision Securities has been placed in receivership by Perpetual Trust
  • (IMF) estimates the New Zealand dollar is overvalued by 10 to 25 percent .

MORTGAGEE SALES RISING 2010

  • Household and external debt are still high. 8 properties per day under mortgagee sales in NZ as at July 2010 and this will continue. 121 registered mortgagee sales in February, 246 registered mortgagee sales in April 2010 & in July 343 mortgage sales that really is around 24% of total sales of real estate being mortgagee sales. Manawatu has approx 22 sales per month?? This is not the end but the start as costs increase and homeowners find it harder to make ends meet. Electricity and vehicle costs just increased and rents will rise due to the governments inability to stop hikes. Buying a mortgagee property sale is another matter

Kiwi Saver will they follow Hanover

  • Feb 2010: Peter Huljich used his own money to artificially top up his company's three KiwiSaver funds, which have become the first to be investigated by the Securities Commission. Mr Huljich, a director of Huljich Wealth Management with Auckland City Mayor John Banks and former National Party leader Don Brash. In March 2010 70,000 New Zealanders had signed up & now Peter Huljich has been dropped in favour of the Huljich Wealth Management former & Reserve Bank Governor and National Party leader Don Brash has taken over as the company's managing director and chief investment officer. Lets see if this will make a difference??
  • One good thing: March 3rd Reserve Bank governor Alan Bollard has now said all non bank deposit takers (NBDTs) will require credit ratings from one of three officially-sanctioned agencies in order to operate. BUT it does not stop these "finance companies" from making bad investments with your money?????????? so watch out.
  • But also in March 25th 2010 the Securities Commission is worried about unscrupulous marketing of Kiwisaver in getting people into the scheme. Section 35 of the Securities Act prohibits the offering of securities on a door-to-door sales basis. The commission believes high pressure, or coercive, or misleading selling were inappropriate for Kiwisaver so those being canvassed beware.
  • KiwiSaver, just like any other investment, is risky and is not Government guaranteed. KiwiSaver schemes have been set up by both small and large new & reformed "finance" companies---does this make sense.

 

   

 

 

Blue Chips: Finance companies & how they can get away with investor funds

It was reported that Mark Bryers fought off Bankruptcy proceedings after a string of property company failures & got a slap on the hand by the uselss Judge yet many people are destitute & he still is living high --- how can a failed finance company ex owner live in luxury in Sydney and jet back and forth??? but yes he has a good job helping an Aussie Finance developer to do the same thing. NZ Politicians have kept away from this scandel as they cannot do anything. Blue Chip liquidation include investors who paid $42 million of deposits between 2004 and 2006 but Blue Chip collapsed in February last year owing $84million to 3000 investors whose apartments were never built, whose prospectus was disguised by not stating $50,000 was levied as admin fees? & investors with money frozen and creditors got nothing back but heartache. Mark Bryers now in Australia marketing a property investment scheme, the same as Blue Chips to an Australian company-- so heaven help those who invest in this company. Heres another example of how investors trusted the sales pitch of Blue Chips but they have only themselves to blame for losing their money. The sales pitches were hyped up; some lawyers ill advised their clients & got nothing more than a slap on the hand & Mark meanwhile lived the high life & Corporate life that most thought was a way to join in and make money via apartments. This is also a sales pitch ploy that would be investors see as a way to join and make money. Some of the projects were never started nor finished with the false promise that he would be them back??? yeah so investing without seeing an apartment is also not a good idea. This is a ploy many developers use in Thailand!!! & many lose their investments to the developer!

However in the case of Bruce and Dorothy Bartle aged 66 and 65 , with a combined pension income of $21,736, and a house worth $400,000 in Whangarei Blue Chips via GE sucked them into a loan of $629,566 which was oppressive under the Credit Contracts and Consumer Finance Act 2003 allowing them to borrow well in excess of their current repayment asset value. Using a now bangkrupt solicitor who gave bad advise : Jonathan Mathias the ability for them to repay was we feel disproportionate & it seems GE was not aware yet via Blue Chips accepted it??? Their so called apartment in Symonds Street, Auckland bought for $552,000, was later sold for $250,000 after the mortgage fell into default. This couple now appealed and won and a case involving GE could lay a prescedent for others to recoup monies. Basically sucked in by loan shark mentality but lets hope the Court will now act.

Northern Crest Investments--another Mark Byers company keep well away from this company:??

the last surviving business of Mark Bryers' failed Blue Chip group, fell into the red this year after writing off a deal that soured in April. Sydney-based company, removed itself from the New Zealand Companies Office registry, made a loss of $3 million in the six months ended September 30 2010.

Most of that came from a $3.5 million write-down in fees .A warrant has been issued for the arrest of Blue Chip's Mark Bryers for non-payment of a fine.Bryers, who was bankrupted in October 2009 owing personal creditors $230 million, is now living in Australia. He was convicted on 34 book-keeping and record-keeping charges as well as failing to attend a creditors' meeting & sentenced to 75 hours' community work and fined $37,500. Blue Chip collapsed in 2008, owing 3000 investors $80 million.

Remember you are at the mercey of finance companies when you invest in them & many advisers only wish to gain from there advice which in time of boom are in never never land. Then there are those Hanover investors that never listened to Bruce Sheppard whose advice they should have taken with the Hanover debacle--- they would have been better to have gone into receivership yet they knocked Bruce down as they had no foresight that the directors would never be able to pay the money back (how dumb ) --it was just a stalling tactic and those Hanover investors have only themselves to blame for no foresight from someone well conversed in the share market and finance company scams. Those who lost their investments you blame yourself not the directors who are living pretty on some of your money as theres no provisions on what remuneration retainers they took as they took around $91m between them before it collapsed.

However the government needs to put the breaks on where these finance companies invest in to safeguard Kiwisavers? but even as these companies report on their financial situation some will be dishonest and kiwisavers wil suffer as they can pay themselves what they want at investors expense like Hanover the 2 directors paid themselves a nice pay packet of $91m and noone can stop that? Allied Finance came along & decided to buy into Hanover on another dumb move just to add to the turmoil.

HANOVER FUNDS FROZEN:

December 2010: Former Hanover Finance boss Mark Hotchin says he can't live on $1000 a week the amount the Securities Commission will allow him, after a High Court order freezing all his New Zealand assets. The order included his bank accounts and $13.5 million property at Boatshed Bay on Waiheke Island in Auckland's Hauraki Gulf and a $30m not-completed luxury home on Orakei's Paritai Drive. Hanover Finance had 13,000 investors with $465 million worth of debentures & United Finance - another company in the Hanover Group - had 2400 investors with $65 million in debentures. Combined total was more than $500 million.Eric Watson and Mark Hotchin fleeced it. The court froze the assets of Mr Hotchin & 2 trusts on application of the Securities Commission, without notice.[ Read more ]

KEEP AWAY FROM FINANCE COMPANIES

St Laurence a property finance company collapsed in May 2010 . St Laurence has paid back $10 million to investors since it went into moratorium in December 2008, owing some 9,000 people $245 million. St Laurence’s debt for equity swap proposal didn’t look convincing in the first place. So it is no surprise that the trustee, Perpetual Trust, intervened and appointed Deloitte as receivers for the company. Director Kevin Podmore also involved in the Westpac affair & declared bankrupt in Dec 2012 but moved his $2 m home to his wifes name to avoid losing it. Another shister and why people need to avoid finance companies.

 

SO WHATS THE ANSWER BONDS??

NZ Bonds are a fixed interest investment wher one lends money but does not have shares in the company itself unlike buying shares. They can be liquid and usually for a set term at a set rate but this can change. Liquid allows you to sell bonds via an exchange like shares. You can sell before maturity and if the bonds interest rate has dropped then you make more money but if they rise then you lose. Usually amount of interest doesn't change unless its a floating or pertpetual rate bond. If you hold till maturity the your initial capital value has no impact at all. However never buy from newspapers as all good bonds are snapped up by Brokers who on sell. Interest is paid on a semi annual compounding & better than Bank term deposits. A bond is a certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date. Basically one is making a loan to the government or corporation and gets paid a sum of money in the future for letting the government or corporation borrow the money. Bonds are one way the government raises money besides taxes.

OR BANK TERM DEPOSITS:

Well no to this as interest rates are lower than anywhere else & if you quit earkly then the Bank may levy fees as well as a lower interest rate but if you dont mind the interest rate you can allow some funds to be placed in term deposits. But be sure of the timeframe over which you wish to invest your money as you might need it early. The more often interest is both calculated and credited, the more you will earn. For example, $10,000 invested for five years with interest calculated daily then credited monthly will earn significantly more interest than if interest were calculated quarterly and credited annually. The best investment you can make is to pay off your debts. Why pay 9 per cent on your home loan or 18 per cent on your credit card and earn just 3 or 4 per cent on bank savings. Every $100 you use to pay off your debts is another $100 you are not paying 9 or 18 per cent interest on. Remember, a dollar saved is a dollar earned.

OR STOCKS:

Stock shares are traded, bought and sold at a stock exchange. They allow the stock owner to share in the profits of a company. These profits come in the form of dividends, which are allocated according to how much stock one holds in the company. Of course one of the disadvantages is that one can lose money if a stock's price goes down.

[ USA Federal Reserves audit & Bailout 2011 ] [ Whats Rehypothecation -mortgages 2012 ] [ Whats a reverse mortgage?? ] [ Pansy Wong Bad or good ] [ Save NZ Farms for Kiwis: STOP ] [ Building Tax depreciation NZ ] [ Hubbard vs Securities Commission ] [ Finance Report July 2010 ] [ Banks & Subprime Mortgage ] [ Finance Companies 2010 ] [ Property Report May 2010 ] [ Buying Mortgagee Property Tips ] [ Kiwisaver good or bad Providers ] [ George Soros Mortgage answers March 2010 ] [ USA Printing $$$$ 2010 ]

WHY ARE MANUFACTURERS & BUSINESSES LEAVING NZ: [ Read the story ] The issues are economics nothing else and many a time the owner is blamed for moving when in fact he has no say in the matter otherwise he will go bust. However read the reasons why NZ has lost the plot ---[ Compare to Thailand ] & why more factories are heading abroad now. It makes sense.[ Check WHY THAILAND ] is better for Manufacturers & any Kiwi Company. Why NZ is lost [ NZ Deficit increases ] Yes we owe money????? [ Government $250m a week borrowing ] [ Transmission Gully Impact costs ] [ Kiwi Family Savings Plan ] [ Benefit cuts good or meaningless ] [ Quit smoking-heres how ] [ Levin Business dying ] [ NZders lose out ] [ World population exploding ]

" Invest in finance companies--- crazy--- they can do what they like with your $$$$ "

 
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