Hi guys,I have got a buy order on FMG since last week, hasnt...

Hi guys,

I have got a buy order on FMG since last week, hasnt been filled yet. I suspect with the dividend they are announcing for next year the only reason it is not going up fast is the price of iron ore which indeed could take more hits. So essentially what you earn in dividend you lose in SP.

IF and thats a big if, iron ore holds or goes up it could mean party time for holders as people will flock to buy pre dividend. Where could you get 15% yield if your risk was low right?

@swecare for sure buddy, I will post photos. The material and trades thing is crazy, really crazy. I recently had to shop around for a bricklayer for my builder as brick work was only half way through. From what the builder was saying his brick layer Mr Ming went to China and didn't return . You could get these guys very easily between $0.7 to $1 per brick laid pre lock down. Now if you mention anything under $1.5 to $1.7 per brick they will hang up on you and thats their minimum! Normally if you dont shop around you would pay higher.

My solicitor was telling me that there are many developers and builders who have sold off the plan and are now approaching the solicitor to see if there is a way to get out of contract because they are not making money and wont finish the build.

There are people out there with a fixed priced contract of build, the builder is not able to continue building as his costs have changed now and the owner is not able to offer more money because they dont want to or the bank is not lending more on construction loan. Its a zoo at the moment.

Inflation in short term will be going up, it will likely twist the banks hand (not that they didnt want to do it) to raise interest rate and I would not be surprised if in a year or two we have a mini GFC in this country due to people being overloaded on debt. I hope not.

I would say right now is a bad time to buy and bad time to build but obviously very good for tradies at present. How are you going?