Business

 
Inching home tonight in the bumper to bumper, I had my normal entertainment release on - MTR. A station so bereft of listeners my mere tuning in increased the audience by 20%. MTR is great lulzy fun though, a bunch of dudes who don't believe in much of anything - except lining their own pockets - lead a group of buffoons around by the nose all day. What's particularly fantastic is how those buffoons have learned all the lingo and now parrot it back when they call in raging against the latest Labor/Green screw up - "socialism" "redistribution of wealth" "moozlums on boats" "dey took er jerbs".

Don't get me wrong, I'm no fan of Labor, nor Green, nor Liberal. I have nothing but contempt for most politicians, I'm a fair guy on that front - I hate everyone equally. What gives me the giggles though, is how easily these people slip into parody - kind of like some unhinged lunatic on a blog ranting about real estate...

What kept me sitting in the car, after arriving home, was the story of some dude. Yep forgotten his name already, but Some Dude (now his name for the purpose of this story) found the Sheriff pounding on his front door yesterday, suggesting he pack his toothbrush and vacate the joint because the locks were being changed. Some Dude had fallen behind to the tune of $9,000, he was 56, had substantial equity (no figure given) in his $600k home and crashed hard because people were behind paying money owed to his engineering business.   

Now he might have been blowing smoke up Martin King's arse and being that Martin King is an imbecile of considerable standing it wouldn't be such a feat, but as retail and smaller businesses begin to suffer more and more, you can't help but think this will become common place. Especially given most small business lending is secured against the family home.

As the HUN said on April 9, of repossession writs in Victoria...
STRUGGLING Victorian home owners are the target of almost five repossession writs lodged every day in the Supreme Court.

In the year to March 31, lenders filed 1727 repossession writs in the court after home owners defaulted on their loans.

Consumer experts warn Australians are over-reaching as they strive to achieve their dreams of home ownership.
The totals in 2009 was 2586 and 1799 last year, though you could rightly expect last year's figure will be surpassed, with current numbers you could at least expect another 400 in the final three months. Although the numbers of stressed homeowners sticking their nose in the superannuation honey pot as a last resort is on the rise again.

On those businesses...
A WOMAN whose property was at risk after she mortgaged it to secure a credit facility for a business. When the business exceeded the credit limit, the bank stepped in, launching action to take the property near Geelong.

A WARRAGUL woman who lost her home after using it as security for a business credit facility.
Last week I was ambivalent about letting the hell fires rage, but it's shown in a different light when you consider people who've put their arse and house on the line for their business, and no I'm not talking about the, "oh I consider my property investing a business" bozos. If those fires rage, businesses against houses - it will get ugly if it's not beginning already.

And speaking of smoke signals, the most interesting thing about Melbourne is the levels of stock currently on the market against where they were in the wrist slashing days of 2008. We know what happened next, the first home vendors' boost helped kick the can down the road and clear that stock out. Most capital cities are below or edging towards those previously high levels. Melbourne's already overshot that previous mark by a considerable margin.

If you're behind on the mortgage, you might not hear them, but the snakes are slithering towards your door. If you're expecting some reprieve, remember the bank only cares how much they're gonna get back when you default. And who is it best not to default with?
The National Australia Bank issued more repossession writs against home owners than any other lender, with 232 writs.

The Commonwealth Bank issued just five.
More give, less take eh?

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