While It’s Not Yet Time To Panic - It’s Almost Certainly Time To Get Ready To Panic
A report from the Albert Lea Tribune in Canada. "Welcome to Tiger Hills. Since the properties went into tax forfeiture, two have sold. Twenty-nine lots — just over 40% of the lots in Tiger Hills — have yet to be sold out of forfeiture. Judy and Richard Carlson purchased their Tiger Hills property as a lot and built on it, moving in in 2011, she said. Later, the purchases slowed way down. 'I don’t know why, but it doesn’t seem like anyone’s interested,' she said."
The Northern Echo in the UK. "A father-of-three who invested almost £130,000 in what he thought was a luxury studio apartment has spoken of his despair. The investor, who lives outside of the UK and has asked to remain anonymous, says he was shown a brochure filled with images demonstrating how the apartments inside Windlestone Hall, near Rushyford, would look and promised a ten per cent return on his investment year on year."
"According to Land Registry, a total of 37 studio apartments were sold between January 2018 and March 2019 for sums totalling £6,047,710, and Carlauren has since gone into administration. The investor said: 'When the first payment was late I knew something was wrong. I had hoped that this investment would be there for my children in the future but we have been told that our investment is at significant risk. I just want my money back for my family.'"
The Irish Mirror. "Big news in Ireland’s crazy property market as the experts say prices are falling and while it’s not yet time to panic - it’s almost certainly time to get ready to panic. Yes folks, it seems a combination of Trump, Brexit and a jittery global economy is doing what our politicians have failed miserably to do for more than a decade."
"But we can hardly call this endless cycle of boom and bust 'bringing sanity back to the Irish property market' can we?"
From Live Mint on India. "It all begins with a smooth pitch delivered either at your home or in an expensive café. You are reminded about the high returns that real estate has given over the years. Finally, the deal is clinched by dangling returns, usually around 12-15% annualized and sometimes higher. However, in most cases, the investors ended up with a loss."
"'I was approached by Aditya Birla Money in 2010. They pitched me this product saying I would get access to real estate at a low ticket size. I wanted to invest to buy a house and I thought I would get ₹50 lakh (from a ₹25 lakh investment) after the six-year term of the fund,' said Dinesh Sharma, 40, a shipping industry executive who invested in the fund. 'However, the fund managers kept changing and they kept extending the life of the fund. Now, I will be thankful if I get back anything at all.'"
"'People with large incomes and the ability to invest aren’t necessarily financially savvy. There is nothing to stop such debacles from occurring again,' said Amol Joshi, founder, Plan Rupee Financial Services."
The Sydney Morning Herald. "Residents from Sydney's cracked Mascot Towers have asked for the NSW government to help fund remediation works because a third of them can't afford to pay a special levy. On Monday, the strata committee wrote a four-page letter to NSW Better Regulation Minister Kevin Anderson arguing a survey of owners suggested 35 per cent wouldn't be able to pay their portion of the levy."
"Applications to extend mortgages have been declined, with owners unable to obtain a personal loan resorting to borrowing money from friends, refinancing by using another property or relying on savings."
"The letter also includes comments from 21 owners, with one writing: 'I will be turning 67 years old early next year ... My husband passed away 15 years ago. Mascot Towers is my only asset. I have never in my entire life relied on government support. The stage 1 special levies alone will erode 50 per cent of my savings, I will not be able to ever retire now. At this stage I really do not know what I will do as no one will loan me any money.'"