Lots of money out there!

[OK2]

I went to a no reserve industrial equipment auction today in Laverton, Melb. I recall the days not to long ago where heavy excavation equipment at the top end of the market would only be purchased by large companies. Today a number of lots sold in excess of $250000 and one went for $550000 to private individuals. Speaking to a number of buyers it would appear that the building boom is yet to peak with these guys not able to keep up with the demand, hence the bigger and better equipment. Payment was 25% cash on the day with the balance in 7 days, the loan shark onsite did not manage one client for a day in which 15+ million dollars exchanged hands. Looking around there were some seriously cashed up construction labourers turned developers. Not often you get to see men in overalls driving a Range Rover, and yes the Rangee was the majority of the top end vehicles in the carpark. It would appear that we are all benefiting from this resource boom.

So much for thinking that I could pick up a cheap repossessed excavator to do the garden. I ended up going to Bunnings and buying a $39 shovel!

 

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a "where are they now" thread?

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[OK2]

I am still in the construction industry and it is just starting to show signs of slowing with last years contracts coming to completion. The builders who tried to be developers and investors all in one are already hurting as are the small/mid cap builders. Many new projects now have a longer time frame for completion as opposed to the throw em' up approach. The larger builders are already quoting on Government infrastructure contracts which should start to come to fruition in the next 12 months.

We really needed to sort the crowd because some of the workmanship that I saw was way outside normal tolerance.

 

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ok2. i wasnt having a go at you mate. i was refering to the easy money of years gone by, and some of the resulting property crashes.

it was a generalisation, not aimed at anyone in particular. hope i didnt offend.


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[OK2]

That is fine, I was just explaining the way that I see it. From my end the change means little or nothing.

There will be a large number of no reserve auctions coming up shortly, now that I can predict.

 

[tech/a]

I am still in the construction industry and it is just starting to show signs of slowing with last years contracts coming to completion. The builders who tried to be developers and investors all in one are already hurting as are the small/mid cap builders. Many new projects now have a longer time frame for completion as opposed to the throw em' up approach. The larger builders are already quoting on Government infrastructure contracts which should start to come to fruition in the next 12 months.

We really needed to sort the crowd because some of the workmanship that I saw was way outside normal tolerance.

Well I'm in Civil Construction.
Just put on 2 + 2 employees in the last week.
Our forward order book is as full as it was 18 mths ago.

Civil works are taking a new direction.
I'm finding that the principals cant invest the money quick enough. While price is important its back to the question of when can you start and whats your likely finish data.

Infrastructure and current projects are getting a massive injection and its NOW not flowing through in 18 mths!

So dont be so sure this will dribble through its flooding through!

There will be a large number of no reserve auctions coming up shortly, now that I can predict

Funny you should mention this.
I have a small fleet of 8 vehicals.
SA Govt Auctions have Falcon and Commodore Utes and Sedans factory gas fitted with 50Kish on the clock 2007 models for $14500 each.
I get $6000 each for my old ones,I can up grade my whole fleet for the price of an average Merc or BM.

Here are the last Auction prices fetched

http://www.auctions.sa.gov.au/price...N&tran_type=ANY&price_range=ANY&Submit=Search

http://www.auctions.sa.gov.au/price...E&tran_type=ANY&price_range=ANY&Submit=Search
Wow what opportunity!

 

[OK2]

tech/a a while back you mentioned in a different thread that you were going to a cash position and I could not understand why when the market was roaring ahead. Not long that after I took your lead because the growth we were seeing was no longer sustainable. I extend my gratitude for you expressing your opinion at the time. So you were right but perhaps a few months early and I wonder if this could be a repeat.

 

[tech/a]

Nothing much has changed.
Been discretionary trading with mixed results not trading with any conviction and have missed one of the greatest short trading opportunities ever seen and I called it! Bugga.

As for the building Industry.
We have and will continue to take an aggressive stance.
I would rather be concerned with how to get the work out than where the works coming from!

There is lots of money out there and the goverment keep throwing it out there.
You need to Go where the Money is and Go there often.

 

[Temjin]

Funny you should mention this.
I have a small fleet of 8 vehicals.
SA Govt Auctions have Falcon and Commodore Utes and Sedans factory gas fitted with 50Kish on the clock 2007 models for $14500 each.
I get $6000 each for my old ones,I can up grade my whole fleet for the price of an average Merc or BM.

Here are the last Auction prices fetched

http://www.auctions.sa.gov.au/price...N&tran_type=ANY&price_range=ANY&Submit=Search

http://www.auctions.sa.gov.au/price...E&tran_type=ANY&price_range=ANY&Submit=Search
Wow what opportunity!

Just wondering Tech/A, have you looked at those repossessed vehicles auctioned through an intermediate dealer on behalf of finance companies?

I heard of stories about getting real cheap vehicles from them nowsday as more and more people are having their car repossessed by their lenders as they cannot afford the loan repayments.

Would be an interesting place to look for a new..ok..almost new (second hand) vehicles at discounted price. Just like what you are trying to do from government auctions.

 

[tech/a]

Just wondering Tech/A, have you looked at those repossessed vehicles auctioned through an intermediate dealer on behalf of finance companies?

I heard of stories about getting real cheap vehicles from them nowsday as more and more people are having their car repossessed by their lenders as they cannot afford the loan repayments.

Would be an interesting place to look for a new..ok..almost new (second hand) vehicles at discounted price. Just like what you are trying to do from government auctions.

No I haven't.
I have a buying agent purchase from Auction for me.
As all vehicles are sign written I always want white.
Frankly for a company vehicle they really do just fine.
Done the mid life crisis and have to laugh as 5 yrs ago I had a S2000 which cost me around $70k Now I can buy 5 cars for that! (No it wasn't white and wasn't sign written--sacrelig)