beechwood homes goes bust, page-69

rather than listen to plonkers skite about how much they have made on property, how many properties they own and how great property is... "you got to be in it" blah blah

have a look at what is happening to the businesses that actually make money from building homes.

eg AVJ, DVN, MGR, SGP

Their share prices are going down. Funny that!!!

OK we know the biggest home builder in NSW , Beechwood has gone bust well now here is good story about Mirvac another home builder
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Mirvac savaged after big Sydney home builder collapses Font Size: Decrease Increase Print Page: Print Maurice Dunlevy | May 16, 2008
PROPERTY giant Mirvac was downgraded to a sell yesterday amid fallout from the collapse of one of Sydney's largest home building companies.

Merrill Lynch cited the Beechwood Homes receivership as one of the reasons for the downgrade, which is the latest setback for the big property companies in deteriorating housing markets across Australia.

On Monday, Merrill Lynch downgraded another property giant, Stockland, from buy to neutral, mainly because of concerns about its exposure to the cooling Queensland housing market, and its British businesses.

Merrill Lynch had previously rated Mirvac as neutral, although Citi had recommended Mirvac as a sell more than a month ago.

Yesterday, Merrill Lynch said Mirvac's residential profits were unlikely to recover quickly, predicting residential markets could remain flat for 18 months. The broker said NSW was an important market for the group, accounting for 65 per cent of its housing lot sales in the first half of 2008.

"While NSW homes have been an earnings drag for some time, Beechwood's receivership, prolonged residential weakness and earnings quality will likely weigh on the stock," the broker noted.

The upside for Mirvac was that it remained focused on Australia, had moderate gearing and long-term growth potential.

"Near-term" concerns about housing markets, and reliance on asset sale profits, would continue to hang over the stock.

Mirvac chief executive Greg Paramor conceded yesterday that housing markets were tough and not getting any better.

Mr Paramor said the Mirvac business model was not concentrated on NSW housing, which accounted for about half its NSW operations, which in turn accounted for 25 per cent of Mirvac's overall business.

"Groups that are well capitalised like ourselves will have to be patient in this market," he said.

"The challenge for the Reserve Bank in our two-speed economy is slowing the part that is causing inflation -- and it's not housing."

Mirvac's share price, which reached a $6 high in December, lost 13c yesterday to close down 3.39 per cent at $3.70.