Sealine & Fairline

Re: Sealine & Fairline

ACB
It may well be that luxury goods manfacturers, including boat builders, are in for a very tough time. But historically, when money is tight it is always the bottom end of the market that is hit first. So it has made absolute sense for companies like Fairline to move up market - increasing turnover and profit with fewer numbers of more expensive products.
Even now, the economic downturn doesn't seem to have filtered through to the superyacht industry.

Best wishes
Tony
 
Re: Sealine & Fairline

I'm not sure, but I suspect it may be the opposite. The market for small boats that are bought on mortgages on a fairly tight family budget is, i think, bad. The market for £1m + boats is much stronger, and the market for £10m+ has never been stronger. So Fairline might be less exposed than they would have been if they had kept up the smaller boats.

Edit: oops, I see TJ has already said the same, sorry!

I agree with you on the separate issue of deposits and credit risk there. While some dealers are finacially sound, others aren't, and it can be hard for Joe Public to tell the difference

Incidentally i was chatting to one of our employees today who has got into an awful state re credit crunch. She sold her old flat and got the equity in cash and banked it, £50k. She exchanged contracts on new flat and paid deposit £25k, with the other £225k to be funded by £200k mortgage and her other £25k still held on deposit. Completion is next week. The £25k is in Icesave and she can't get it becuase the guarantee will take months to pay out, and she can't get more mortgage in the credit crunch. So she will default on the contract to buy new flat and lose her £25k deposit. How incredibly cruel is that?
 
Re: Sealine & Fairline

Sounds like her incredibly caring employer should loan her the money? /forums/images/graemlins/smile.gif Could she not get a £25k on overdraft or on credit card?
 
Re: Sealine & Fairline

Yep, there will be a bail out plan, don't worry! I was just illustrating the knock on effects of Icesave etc. Strange times eh? Lots of folks I know are prepaying now their 31/1/09 tax bills!
 
Re: Sealine & Fairline

Hi jfm

Isn't there a chance that although it'll definitely sting to lose 25k on the purchase of the flat, she would have had an evens chance of losing more than that through property depreciation anyway over the next year or so - especially if it was a brand new property. Might be a slight consolation praps?

Cheers
Jimmy

PS (with apologies for fred rift) has the PV season finished now?
 
Re: Sealine & Fairline

JFM, I would check the conditions of sale in the contract.

This will advise how the issue of failure to complete is to be dealt with in the agreement.

Amongst other routes it may advise that interest will be payable in addition to the completion monies for a period which may help. Alternatively it may reveal that the vendor can keep the deposit and recover any losses incurred, which could be a much bigger problem as your employee may be eventually sued for the difference if and when the property is sold at a lower price.
 
Re: Sealine & Fairline

Yep, all correct. She can indeed be sued for more than the £25k. A bail-her-out plan will be hatched, don't worry!
 
Re: Sealine & Fairline

Yup suppose so, though she wants the flat, just likes it. Dunno really, depends on your forward view of the property market, though I'd agree with you.

PV season not finished, not at all. Last weekend was glorious and i got out to sea. Plenty of folks were swimming in the La Garoupe anchorage. I expect to get a few more nice weekends in during the next month or so, at least. I've got some sunshiny pics and can post when get a minute. Let me know when you next have to go and visit your customer in Antibes!
 
Re: Sealine & Fairline

We're in SofF the week after next. Might see you there!

Talking of bad luck stories, a mate of mine is a mortgage broker (doing self cert stuff). Was earning £150k basis plus £150k annual bonus. Bonus has been stopped and he's had to take a 33% pay cut. So that's £300k down to £100k. Problem is that he's got a £750k mortgage and is used to having a £300k lifestyle. By my reckoning he's not even making enough to pay his bills.

Pete
 
Re: Sealine & Fairline

Blimey. I think I read that UK monthly mortgage lending in Sept 08 was 3% of the Sept 07 figure. He must have hardly any work to do. Tough times

Yep PM etc if you are around. Actually i wont be on the boat the 25/26 Oct weekend cos I'm supposed to be in Corsica, but will be there on 23rd and 28th. At least that's the current plan. I'll leave the keys in the boat and beer in the fridge in case you fancy a spin :-)
 
Re: Sealine & Fairline

[ QUOTE ]
Blimey. I think I read that UK monthly mortgage lending in Sept 08 was 3% of the Sept 07 figure.

[/ QUOTE ]
I'm guessing that Self Cert has completely vanished. It's so bad that I don't even bother asking him anymore.

[ QUOTE ]
I'll leave the keys in the boat and beer in the fridge in case you fancy a spin :-)

[/ QUOTE ]
Don't forget a tank of diesel as well. I'm not made of money!

Cheers, Pete
 
Re: Sealine & Fairline

[ QUOTE ]
We're in SofF the week after next. Might see you there!

Talking of bad luck stories, a mate of mine is a mortgage broker (doing self cert stuff). Was earning £150k basis plus £150k annual bonus. Bonus has been stopped and he's had to take a 33% pay cut. So that's £300k down to £100k. Problem is that he's got a £750k mortgage and is used to having a £300k lifestyle. By my reckoning he's not even making enough to pay his bills.

Pete

[/ QUOTE ]

This exactly why the housing market is donald ducked. A guy earning 150k gets a 750k mortgage. In the new government owned/controlled banking world it will be back to 3 times salary so all those with heavily leveraged mortgages (and there are a lot) will either (a) not be able to re-mortgage or (b) pay a massive risk premium to retain the same loan. Either way it's bad news.
 
Re: Sealine & Fairline

I feel lucky to have sold my House in May just weeks before prices started to really slide...renting at the moment and will do so until this storm is over...I know what it's like having a big mortgage and I'm happy not to have the stress of one at the moment..
T
 
Re: Sealine & Fairline

Does this financial wobble mean the market will be flooded with <£200,000 second hand boats ?
 
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