Burnt Chips

Blue Chip Stadium, Baypark, Tauranga

(Postscript - Following the publication of this post, the Bay of Plenty Times has reported that the Bay of Plenty Rugby Union and Baypark Stadium management are waiting for more than $200,000 worth of sponsorship money from troubled property investment company, Blue Chip).

My final words on investment property. Honest!

The news that a large number of companies associated with Blue Chip have been put into liquidation is no surprise. It has been on the cards for some time. It reflects in some ways the 'bubble end' of the investment property market. Guaranteed rents, guaranteed sale to Blue Chip associates after 3 - 4 years, guaranteed capital gains. Great brochure-ware, but a little light on reality.

I guess my interest is slightly raised because Blue Chip have offices in Tauranga and are the named sponsor of our local sports stadium at Baypark. It is where I watch the Bay of Plenty Steamers in the NPC rugby tournament.

My last posting talked about the malaise in the housing market. The Blue Chip debacle will only exagerrate that. The landing is going to be harder than many investors are expecting. And that really is the final word.