Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: biometricgngboy who wrote (15267)	11/26/2003 11:58:59 AM
From: Jim McMannis	Respond to of 306849

Well, we've had 2 big "economy heating up" scares in the last month or so and rates are still down. If this continues it could wind up where rates have to be raised a whole lot more later on if they continue to wait. Jim

To: biometricgngboy who wrote (15267)	11/26/2003 12:04:03 PM
From: biometricgngboy	Respond to of 306849

Australian Broadcasting Corporation LATELINE Late night news & current affairs TV PROGRAM TRANSCRIPT Broadcast: 26/11/2003 Kaye lies lows after company collapse Creditors in the collapsed property investment businesses run by Henry Kaye now look like getting nothing back from the $10 million they are owed. Receivers tonight said Mr Kaye's companies appeared to have no realisable assets. The collapse has renewed calls to introduce national laws to regulate the get-rich-quick property seminar industry which has been blamed for causing an asset price bubble in inner-city apartments. Mr Kaye was lying low today, only issuing a statement blaming the media for his current situation. Compere: Tony Jones Reporter: Steve Letts TONY JONES: Creditors in the collapsed property investment businesses run by Henry Kaye now look like getting nothing back from the $10 million they are owed. Receivers tonight said Mr Kaye's companies appeared to have no realisable assets. The collapse has renewed calls to introduce national laws to regulate the get-rich-quick property seminar industry which has been blamed for causing an asset price bubble in inner-city apartments. Mr Kaye himself was lying low today. only issuing a statement blaming the media for his current situation. Finance Correspondent, Steve Letts. STEVE LETTS: On Henry Kaye's estimates he's coached at least 100,000 small investors on a blissfully simple way to turn debt into millions. The first step to this enlightenment was to hand Mr Kaye up to $55,000 to attend one of his seminars. HENRY KAYE, INVESTMENT ADVISOR: See, with property investment, you can be an absolute moron, and you can still make money. STEVE LETTS: However in the past few months, under legal pressure from the Australian Securities and Investments Commission and the ACCC, it's been increasingly difficult for Mr Kaye to make money. He's also being forced by ASIC to repay his seminar clients up to $10 million. Last night it all fell apart - receivers moved into Mr Kaye's Melbourne headquarters looking for any money at all left in his business. UNIDENTIFIED SPEAKER: You take a combination of a number of former students seeking a refund from the property seminars - which may total as much as $10 million in refunds and claims, which is quite sizeable - coupled with no new students enrolling on the property seminar courses, the cashflow and the profitability just evaporated overnight, hence my appointment. STEVE LETTS: Despite the ASIC and ACCC actions against Mr Kaye, there's been growing concern about the unregulated nature of the broader get rich quick property seminar industry, an industry which is said to so far have pulled in at least 250,000 punters in recent years. Tom is a creditor who is owed $15,000. TOM, CREDITOR: Quite frankly, I just can't understand why ASIC has just allowed so much time before actually moving in. It's all come so suddenly. It concerns me that it may be too late to get the money back for other consumers. STEVE LETTS: Back in June Reserve Bank Governor Ian MacFarlane started his campaign to have tougher scrutiny and national regulations imposed. IAN MACFARLANE, RESERVE BANK GOVERNOR: There's this widespread growth of these investment seminars where people come along and they get told how to get rich quickly by using the equity in their existing home to gear up and buy a couple more apartments. And ASIC would love to stop that. The problem is they cannot demonstrate that these people are in fact financial advisers. If they were, they would have control over them. STEVE LETTS: The escape clause is that the real estate industry is covered by State laws. MARK LATHAM, SHADOW TREASURER: Now that the companies of one of the real estate promoters, Henry Kaye, are collapsing and thousands of mum and dad investors are in jeopardy, will the Treasurer now introduce stronger national regulation to protect consumers and investors in the real estate promotion industry? STEVE LETTS: The Treasurer says a national approach is being studied by a joint committee of State and Commonwealth members which is not due to report until next year, but the current system is working. PETER COSTELLO, TREASURER: Apart from the Commonwealth agencies being somehow lax in the matter, the Commonwealth agencies were both engaged and it may well be that it was their actions that have led to this current situation. GRAEME SAMUEL, ACCC: I think that the proceedings currently against Mr Henry Kaye and the National Investment Institute will indicate that I think we have the powers... STEVE LETTS: And while get rich quick schemes have helped inflate property prices, a loss of confidence in them could have ugly consequences in a market where prices for inner-city apartments in Melbourne and Sydney are already starting to fall. ANDREW SUDHOLZ, PROPERTY CONSULTANT: But there are more than this one scheme out there, and what it is doing is fuelling the investment demand into some of the inner-city apartment markets and, I think, in terms of how they eventuate, as I said before, I think the outcome is probably going to be different than what the investors had expected when they entered into these schemes. STEVE LETTS: Late this afternoon the receivers were saying it appeared Mr Kaye's companies had no realisable assets and it was now highly unlikely that creditors would get any money back out of the collapse. Steve Letts, Lateline. abc.net.au