Monday, January 24, 2011

Aussie House Prices Hit the Tipping Point

Aussie House Prices Hit
the Tipping Point

Tuesday, 25th January 2011
Melbourne, Australia
By Kris Sayce

  • Aussie House Prices Hit the Tipping Point


Reading The Age reporting on the housing market over the last couple of weeks has been like watching the Comedy Channel.
At any point we expect Jon Stewart or Stephen Colbert to fly out of the page to tweak our nose and give us a cheeky wink.
First we had, “Land sales plummet, adding to price squeeze”.
Fairfax reporter Chris Zappone wrote:
“Land sales have dropped to decade lows, further eroding the nation’s housing affordability as prices continue to rise, according to RPData and the Housing Industry Association…
“Even as the pace of sales slows, Australia faces a roughly 200,000-unit housing shortage, HIA estimates, driven by complicated planning processes, a tax policy that encourages buyers to hold multiple homes, and the slow release of suitable land by real estate developers and governments.”
So what we have is falling demand equalling a housing shortage.
How does that work then?
Surely, if the bulls were right and there is a housing shortage, buyers would be ripping the arms off real estate developers to get land at any price.
Yet as The Age reports:
“Land sales in the city [Melbourne] staged an even bigger retreat, falling 74.2 per cent in the year to September, to about 1500, the lowest since the March quarter of 1991.”
Cameron Kusher from RPData is quoted saying:
“Undoubtedly something needs to be done to address affordability constraints and governments at all levels need to realise that it is a serious problem.”
Turn the numbers around and what you’ve got are buyers saying they won’t pay stupid prices.  Prices are too high.  And they need to fall.  But the mainstream doesn’t look at it like that.
As far as the mainstream is concerned, a lack of demand equals a lack of supply.  Therefore prices are bound to go higher… because there’s a housing shortage.
Of course, as you should know, the so-called housing shortage doesn’t exist.  What you’ve got in most cases is over-the-top expectations of sellers.
I can give you a good example… about two years ago, a house in the Sayce family’s street sold for around $750,000.  That was roughly 60% more than houses in the same street were going for three years earlier.
Today, two homes in the same street are on the market in the mid to high $600,000s.  One of these homes has been on the market for over a year.  By our estimate, they’re dreaming if they reckon they’ll get anything close to what they’re after.
If they knock 10—20% off the price they might be in with a chance… More likely they’ll have to lop 30% off the reduced price to have a chance of selling.
And based on letters we’ve received from Money Morning readers, it’s a similar story elsewhere in suburbia.  Prices on decent, relatively modern homes are 30% lower than similar homes were two years ago.
Trouble is, they’re still overpriced!
Yet so far, this familiar story has failed to show up in the dodgy housing index numbers.  We doubt that will be the case for long.  In fact, based on the comical analysis of the housing market by ANZ Bank [ASX: ANZ], we’ll bet the numbers will start showing up before this year is out.
According to reporting of the ANZ report – which we haven’t got our hands on yet:
“The bank estimates that house prices will plateau this year, at a little more than $550,000, on average.”
Well, that’s something.  At least it’s better than the ‘house prices will double’ rubbish we’re used to reading.
Even so, the banks still can’t admit it.  They haven’t got the balls to say house prices have and will fall.  They’ve always got to put a spin on it.  In their world house prices either go up, plateau or become more affordable… but they never go down.
Of course, the simple reason for that is the banks don’t live in the real world.  They live in the crazy banking world where house prices must go up.
You and I know why the banks have to push house prices higher – because the banks’ balance sheets are so leveraged to the housing market.
It’s similar to if you have a margin loan on a share portfolio.  While share prices go up you’re laughing.  You’re getting a lovely return on your capital.  But as soon as prices fall, unless you’ve reduced your exposure, you’re going to be in a bunch of trouble.
And that’s exactly what the banks are exposed to… falling house prices.
But as we say, even with price expectations falling by 30%, Aussie homes are still way overpriced.  Yesterday the 7th Annual Demographia International Housing Affordability Survey was released.
It shows that housing in every Australian town and city surveyed is either ‘Seriously Unaffordable’ or ‘Severely Unaffordable’.
For example, in Sydney the median house price is 9.6-times the median household income.
In Melbourne the median house price is 9-times the median household income.
And on the Sunshine Coast the median house price is 8.4-times the median household income.
But we thought it would be fun to see how the ratios had changed since the Commonwealth Bank of Australia [ASX: CBA] published its misleading figures a few months ago.
You’ll recall the bank printed the following slide in a presentation it gave to international investors:
Comparing apples with rabbits
The bank was trying to show that Aussie house prices weren’t overpriced compared to cities overseas.  And a quick glance at that chart would make you think the bank was right.
But, we could smell a great big stinking juicy rat…
We were the first to point out at the time that the CBA had pulled a fast one.  Not that the dumbos in the mainstream press noticed.  They simply parroted what the bank told them.
The bank’s crime?  It used numbers from Demographia to highlight the high ratios in overseas markets.  But it used lower numbers (using a different methodology) from UBS for the Australian cities.
If it had used Demographia data for all cities the table would have looked like this:
Comparing apples with apples
Just a slight difference!  Using the Demographia numbers would have shown the house-price-to-income ratios to be 50% higher than the bank claimed.
Needless to say the CBA shifted the blame and claimed it wasn’t trying to mislead at all.  Of course that didn’t stop the bank from keeping the slide in the presentation and embarking on a world tour to hoodwink investors into buying the bank’s bonds.
So, how do the numbers stack up now?  Take a look at this:
Yep, house prices in Sydney and Melbourne are considerably more expensive than other major cities.  And, whereas prices-to-income ratios in other major cities have largely stabilised, in Sydney and Melbourne the ratios have gotten much worse.
But how does that gel when we claim house prices have already started to fall?
It’s simple.  Right now, many sellers falsely believe house prices will recover.  So they’re holding on… for dear life.  They’re still in a dreamland thinking they’ll get the same price that sellers were getting two or three years ago.
But soon enough they’ll start to sell, and those figures will filter through to the dodgy house price indices.  And eventually the numbers will even start to show in the Demographia survey.
That’s when sellers will figure out the glory days have gone.  And that’s when you’ll get the rush to the exit.  Especially when the fabled baby-boomers start flooding the market with their un-mortgaged properties.
What do they care whether they sell for $600,000 or $500,000 when they bought the house for $50,000 thirty years ago?  OK, they will care, because it’ll be a big chunk out of their retirement savings.  But the point is, once they get it that house prices don’t always go up, they’ll sell as soon as you can blink.
But, The Age article did get one thing right:
“Australian house prices are expected to finish this year flat, amid signs that a slowdown in price gains could become ‘entrenched’, according to ANZ.”
The bit they got right is the ‘entrenched’ part… not the house prices finishing flat this year.  House prices will finish the year lower.  There’s no doubt about that.
What will become entrenched is the realisation that house prices don’t always go up.  Investors and buyers have already started to figure that one out.  And the longer prices stay where they are, the more convinced buyers will be that there’s no rush to tuck into the market.
That’s happened in the UK and US where property buyers no longer see housing as a get-rich-quick money-making goldmine.
“But what about the chronic housing shortage?” you may ask.  It doesn’t exist.
Remember the daft numbers from the National Housing Supply Council?  That’s the government body responsible for spreading the myth about the shortage.  The NaHSC is where the banks and property spruikers have gotten their ammo to support the shortage myth.
Before you swallow the myth check out how the NaHSC came to its conclusion.  Here’s the table from the 2008 report:
Source: NaHSC
We remember seeing it for the first time and laughing heartily.  We picked these numbers apart over a year ago.  Yet still the mainstream peddles the myth.
The numbers to support the housing shortage are based on 9,000 homeless people sleeping rough, 35,000 families who live with friends and relatives, 13,000 families who live in caravan parks, and 26,000 people who… well, this one is really ridiculous.
These 26,000 people are imaginary.  They no more exist than the Loch Ness monster…
What it’s saying is that because the rental vacancy rate is, say 2%, another 26,000 homes are needed in order to get the vacancy rate up to 3%.  In other words, there isn’t a shortage of rental properties at all.  It’s just that the vacancy rate is lower than the long-term average.
What it’s saying is that to solve the so-called housing shortage the market needs more empty houses!
We liken it to a shop claiming there’s a milk shortage when they’ve got ten bottles of milk left over at the end of the day when they used to have fifteen left over.
It’s not a shortage.  It’s a surplus you clowns.
But even better than that, the NaHSC wasn’t happy to just add all the dodgy numbers together.  It had to round the number up to the nearest 5,000.  So even if we accepted their dodgy numbers – which we don’t – the number has been exaggerated by 2,000 dwellings that are merely the result of rounding-up!
What a joke.  But that’s the government for you.
Yet these are the numbers the banks and spruikers base their statistics on when they carp on about a housing shortage.
Make no mistake, all the evidence is pointing towards a massive drop in the price of Australian housing.  For many the drop has already happened.  Just look at the houses on the market in your area and you’ll see the asking price is well below the levels of two years ago – and still they aren’t selling.
The UK and US housing bubble made a loud pop when it burst.  It seems in contrast the Aussie market is suffering from a slow deflation as the air comes out of it.
Either way, it’s bad news for sellers right now.  But a year from now it’ll be great news for buyers.  As I wrote a couple of weeks ago, keep your eye on the housing market… but don’t buy yet… your time will come.
Cheers,

Kris Sayce
For Money Morning Australia

Saturday, January 15, 2011

Virgin Mobile and Broadband is a Joke

A few years ago I signed up with Virgin Broadband and regretted ever since the first day I signed up.  It was a 2 year contract because they gave me a modem for free.  Go figure, a cheap piece of shit they call a modem that doesn't even work and they lock you in for two years.  Anyway, to cut a long story short I complained that their product was shit and I wanted them to relief me of the contract because it did not perform as expected and they refused.  They gave me the run around, asked me to try troubleshooting the modem, exchanged one piece of crap to another etc. etc.  I got fed up, took them to the TIO (Telecommunications Industry Ombudsman) and won!

Fast forward a few years and deJavu.  I called Virgin to ask them when my wife's mobile phone contract ended and guess what, they said they could not provide me with the date because they didn't have it.  That detail was with another department and I had to call a 1300 number.  I sent back an email telling them it was BS and proceeded to call the number.  After waiting for 30 minutes (which is good for Virgin, I've known people who have waited for more than 4 hours) this loser answered the phone and proceeded to ask me so many questions around why I wanted to know the expiry date of the contract.  I proceeded to tell her that I ask the questions and her job was to answer them and not the other way round and pleaded with her not to waste both out times and give me the date immediately so we could both get on with our lives.  FINALLY, I got the date and it happened that it expired in August, so it was out of contract and I could finally leave the sorry excuse of a Telco.  The disgusting way in which they gave me the run around and their strategy to try to keep customers who so obviously want to leave is shocking in the least.  This made my decision to leave so much easier.

I was then curious to know if I was one of only a few who had continuous problems with Virgin and decided to troll the net to see what other people thought of Virgin, it's products and it's service and it turned out that the loathing for Virgin was more pronounced, intense and widespread than I had expected.

See below some comments from people about their experiences with Virgin (I've only posted a fraction of the comments as there were pages and pages of negative comments, more pages than would fill ten books of "War and Peace"):

ShaktiPosted: 12/01/2011

re: Ever tried Virgin Mobile Broadband?
for all the comments re the TIO and virgin i actually took them to the TIO and won - none of the telcos want to pay the exhorbitant costs once the complaint goes to stream 2 which i think is about 10 days after the original lodging of the claim number from the TIO with the telco - i went to vodafone - it was worse but upfront said that if they didn't agree to release me if the service was crap i would take them to the TIO also - they agreed to release and were great - i am actually back with virgin on my iphone - yeah its mostly up and down the phone service - and i am now friends with the guy i made the original complaint with and virgin - but in the last few days in sydney the mobile broadband is down to GPRS speeds and it is horrendous - i spoke to someone at a apple mac store today about it while i was in there and they said that both voda and virgin have too many customers for the towers to handle these days - so until the upgrades happen to the towers we are all pretty well much screwed -stay with the TIO anytime i say TIO to any telco they take me more seriously -
happy new year everyone
LoriPosted: 11/01/2011

re: Ever tried Virgin Mobile Broadband?
Pure & simple, Virgin wireless home broadband sucks!!
I have been with them for 3yrs (god knows why I didn't leave as soon as contract ended) & am now VERY CAREFULLY assessing alternatives. Been through weeks worth of outages and helpdesk calls, promises never kept, replacement modems, hours of wasted time & through it all crappy intermittent Internet connectivity. I'm leaving & strongly advise consumers avoid this ISP!
wombatPosted: 09/01/2011

re: Ever tried Virgin Mobile Broadband?
If you want to reach the Help Desk at VB, go to the Sales or Accounts Desk then ask them to transfer you to the Help Desk. My PB was a 4 1/2 hour wait for the Help Desk - and they can never help you. The product is really just pure shyte. Two tin cans and a length of string will do a better job.
I will never buy a Virgin brand product (including flying) again.
AnonymousPosted: 06/01/2011

re: Ever tried Virgin Mobile Broadband?
Virgin mobile boardband is bs, there's a reason why Optus sells mobile boardband service for virgin, because both Virgin and Optus gives out shady products
PhilipPosted: 04/01/2011

re: Ever tried Virgin Mobile Broadband?
I bought a Virgin Mobile WiFi modem E5832 last month which never worked.The software itself is not getting installed properly.Wasted my time and money on talking to the customer support.It is the worst provider I have ever come across.I will never recommend this.I am quite happy with Vodafone now.I wonder how such a company is surviving in a country like Australia
mikeiPosted: 14/12/2010

re: Ever tried Virgin Mobile Broadband?
Why is this company called 'Virgin' when it has been SCREWING it's customers OVER ALL THESE MANY YEARS?!?!
rockyRoadPosted: 15/11/2010

re: Ever tried Virgin Mobile Broadband?
Virgin mobile broadband is a crock!
How can they sell such a dodgy product. Persistent drop outs and go slows. Problems then reconnecting...
What a friggin JOKE!!!
malcolmPosted: 02/11/2010

re: Ever tried Virgin Mobile Broadband?
virgin is a joke!
my mobile broadband was great!
for about a year... now is trash
no reception then full reception
but still no speed!
definatly going to a new provider.
virgin will be getting no more money off me :)
sarahPosted: 26/10/2010

Do NOT use Virgin
This company is the WORST!1. Bought the MiFi and the device never worked.
2. Paid $40 for the monthly service and obviously never had service
3. I called right away, they told me they'd fix the problem. I do not exaggerate. I called at least 9 times and they kept telling me "turn it off and on", "take the battery off and restart your computer", etc. Had me at least 40 minutes on the phone each time and every time I called I had to explain the same thing all over again because there was no record of my problem on their system in spite they always told me they were conducting an "investigation" on my situation.
4. They finally told me they'd reimburse me the $40 for the service and would send me a new device.
5. I received an email saying my new device had been shipped by Fedex overnight.
6. 5 days later, when I had not received the package, I called Fedex and they told me that they had never picked up that package from Virgin and it had never been shipped even though a tracking number had been assigned to it by the company (Virgin) shipping center.
7. I called three times more to find out and they kept telling me it was on queue to be shipped but Fedex had not been over to pick up packages.
8. 13 days later I finally called again. There was no record of anything. I requested my refund again ($40) and said I did not want the new device anymore, to send me a refund for it ($150). They said they just had to start yet another investigation and to call them back 72 hours later to find out what had happened.
9. 10 days later nothing had happened. I called again and they just said "we apologize for the inconvenience. We'll write another ticket to investigate what happened to your claim and will let headquarters know you have still not received anything."
10. It's been another week and nothing has happened yet but at this point, should I keep the faith?
On top of all this, the communication is horrible... it's like talking on the phone with someone with very bad reception. And this is a cellphone company too?
HORRIBLE. Will NEVER get anything from Virgin or recommend this company. It sounds to me like a scam.
CD ParkinPosted: 21/09/2010

re: Ever tried Virgin Mobile Broadband?
Glad to hear that I am not the only one who has been treated with contempt by this company.Will never use Virgin for anything again as long as I live. I cancelled Virgin and signed up with Vodafone mobile broadband instead, only to find them twice as bad as Virgin.
If you try to ring them you get a voice activated menu that's impossible to navigate through, you get put on hold for over an hour and the staff in the shops can't help you.
And they overcharge on your bill and then cut your service off when you won't pay it.
Just thought I would warn you about this. Don't touch Vodafone with a ten foot pole !!!
(And which phone/data compoany is any better? NMOne that I've discovered. -PZ)
DLPosted: 27/08/2010

re: Ever tried Virgin Mobile Broadband?
Yes, they raised their prices right when I went to renew the service after I paid $80 for the device. The customer service was the worst I have EVER encountered. Try another service.
Stephanie V.Posted: 26/08/2010

re: Ever tried Virgin Mobile Broadband?
I LOVE virgin mobile They have saved me and my husband over $800 dollars this year ALONE! It's not always the fastest but it's idiot proof lol And I love it! Would recommend it to ANYONE. I do online marketing and it's AWESOME.
RichardPosted: 11/08/2010

re: Ever tried Virgin Mobile Broadband?
I can't talk about their USB modems and coverage but as for the home phone/internet bundle I have no real complaints. Initially there were issues like Happy Ending and Another Sucker had but after updating the modems firmware the problem disappeared.
I have experienced long waiting times when I have had need to call them but what Telco hasn't?
Happy endingPosted: 11/08/2010

re: Ever tried Virgin Mobile Broadband?
I rang and complained twice regarding the constant drop-outs, but the third call I asked to be released from the contract, which they did without a problem.(Thanks. That's a good tip. -PZ)
Another sucker with virgin broadbandPosted: 07/08/2010

re: Ever tried Virgin Mobile Broadband?
I can not even stay connected for an hour without a drop out - making online gaming impossible, and the chance of downloading anything at virgins slow speeds near immpossible. Eighty percent of the time my speed is less than 5k.
Avoid virgin broad band if you want service or quality.
Mick SpencePosted: 06/07/2010

re: Ever tried Virgin Mobile Broadband?
I was one of the wankers silly enough to go to virgin broadband, I had acceptable service until someone accessed my account and I made a complaint. The Saturday after the complaint was made modem just went dead, does anyone one know if this modem can be tested to see if it was disabled by the company!! When I rang virgin it said that they would send me out a usb modem and I would have to find another telco for my phone. I still 5 months to run on the contract. I complained to the TIO and that was like talking to a brick wall.(Give the TIO another go. -PZ)
Karen ElphinstonePosted: 24/05/2010

re: Ever tried Virgin Mobile Broadband?
I am on a contract with my mobile and internet combined and thats ok but if anyone is considering virgin, then think again. My daughter and myself both have wireless broadband and if we are lucky enough to get each night, then it takes us 15 to 20 minutes to get onto a site..msn..dont even think about it, its impossible to sign in and then if we are lucky enough to get onto a site, we find it will boot us off every few minutes, we dont have a choice but to shut our laptops down. Best time is first thing every morning...night time, don't think about it. Virgin totally sucks!
Malcolm TaylorPosted: 10/05/2010

re: Ever tried Virgin Mobile Broadband?
Virgin Broad band customer service is terrible was advised we could couple our 2 computers to it wern't told we needed wireles modems and our computers are too old anyway ordered the wifi paid up front just received it and dicovered all the problems rang technical support after pressing 6 buttons I think ended up in the wrong area took 15 minutes to get through to teck support no help at all could hardly understand them just told me to log on to virgin mobile broadband kept going away for more information denied access to superviser.Transfered to customer support anouther 10 minutes told definately no use to us will send out satchel to pick pick it up.If you are thinking of Virgin Don't
Rob VettorPosted: 28/04/2010

re: Ever tried Virgin Mobile Broadband?
Virgin Mobile Boradband absolutely sucks. Application screens do not work correctly. The IVR (Phone System) is an absolute piece of crap and the customer service is absolutlely horrible.Do not even think about using these people.
Mark LattawayPosted: 22/04/2010

re: Ever tried Virgin Mobile Broadband?
Ok, back from yesterdays post. Tonight is the last night on this months plan, tomorrow we start a fresh, so like every end of the month i download all my shows through torrents to use up the remaining amount of data i have left. I have saved a couple of pictures from my usage window Virgin gives you.When you click on the link below you'll see that i have circled a few areas.
Red = Same Same... join 1 red circle with the next.
Green = Time from when the first picture was taken to when the next picture was taken.
Pink = Data usage from one picture to the next.
Yellow = .... when Virgin cuts my bandwidth for going over the 5GB for the month period :(((((
Green Circle =
1st Pic = 1:54:12
2nd Pic = 2:04:36
Diff = 0:10:24
Data Downloaded
1st Pic = 451.48MB
2nd Pic = 675.58MB
Diff = 224.10MB
(over a 0:10:24 period) thats approx 1.2GB an hr!
I have been downloading for the past 40minutes, i only caught the last 20mins you might say (from the start of the 1st picture to the yellow circle.
Once again i state from my previous posts... these types of download speeds are only in the last 4-5days of the plan i've found.
Cheers Mark
http://i565.photobucket.com/albums/ss99/roamin_oz/Virgin/VirginUsage2.png
Mark LattawayPosted: 21/04/2010

re: Ever tried Virgin Mobile Broadband?
Well i'm back from a 5 month absence and once again i can't help but have excellent coverage from Virgin, honestly i have only 1 complain with this crowd. That is, the coverage in New Farm Brisbane is crap still, but apart from that 10/10. In my last post i talked about maybe if i had the ariel it might improve it, well the ariel did nothing, wasted 30buxs but oh well.I don't know if there are others that are on the plan I'm on but from next month an extra 1GB is allocated to my usage, so it will now be 6GB for $34. Man that is cheap as for wireless.
Seriously, i don't know why these people are having so much trouble, guess i'm glad i'm in my shoes and not theirs?
Cheers Mark
Kelly HarveyPosted: 14/04/2010

re: Ever tried Virgin Mobile Broadband?
I have to agree whole-heartedly with the negative sentiments on this forum. And let me add that I am a long time, loyal Virgin follower; mobile, credit cards, airline and my partner even worked for them in the UK, BUT I do NOT recommend their mobile broadband service - dial up would be better. I am on the $34 a month, 5GB deal and despite my best intentions, couldn't use that if I tried cause the connection is so useless. I get between 0-3kbps in both Sydney (Randwick) and Brisbane (Newmarket). The service frequently drops out and is very frustrating to use.In their defense, it is certainly very handy to have the internet by just plugging in a USB, but the speed is disgustingly slow.
I never write blogs but I feel strongly about the poor quality of this product and wish someone had warned me. Sorry Virgin, you've lost my support on this one.
SimonPosted: 22/03/2010

re: Ever tried Virgin Mobile Broadband?
Thanks everyone for the great advice. My two year contract with 3 has just ended and I'm looking for a new mobile broadband provider. Thanks to this site, I'll avoid Virgin/Optus and their resellers at all costs. Any point looking at Vodafone or should I stick with 3 (which has been pretty good for a while now). Thanks guys.
Grumpy Broad Band userPosted: 24/02/2010

re: Ever tried Virgin Mobile Broadband?
Virgin Broad band are terriable. Thier customer service lied to me about porting my home number, the service sucks, I;m lucky to have a night on internet access that doesnt drop out every 20-40 times over 4 hours, support line feeds you bullshit.
I activaily suggest to everyone who asks to avoid Virgin.
Matthew BiggPosted: 12/02/2010

re: Ever tried Virgin Mobile Broadband?
I was considering purchasing, VMB but am very glad I stumbled across this page.
Nigel PayPosted: 10/02/2010

re: Ever tried Virgin Mobile Broadband?
Just to give an update - it is now a over a month since I let Virgin know of my problem and two months since anyone from another network has been able to phone me. Virgin promised to waiver the monthly fee until it was fixed. I checked my bank statement today and surprise surprise the debit has been made. Needless to say it is with the TIO. Lets hope they have more luck than me!
Older PersonPosted: 18/01/2010

re: Ever tried Virgin Mobile Broadband?
I susoect this is Optus under another clothing. Correct?
thommoPosted: 17/01/2010

re: Ever tried Virgin Mobile Broadband?
this is ridiculus third time ive tried to write this using virgin broadband and yet they make it hard to even have a winge about them as I have had problems since day one reguarding falsely advertised prices and the typical constant cut outs as so many people have complained about. i have rang them up and even threatened to complain to the communications onbudsman and yet all i was offered was the advertised price as a one off only if i could prove it, then after i proved it the person that offered me the crummy one off was then uncontactable and ever since i have had problems with the running software and cut outs. something really needs to be done with this crappy service.(TIO. -PZ)
AlpalPosted: 14/01/2010

re: Ever tried Virgin Mobile Broadband?
I am at the end of my tether regarding the sub-standard performance of both my Virgin Broadband and Virgin Home Phone.I believe I was amongst the earliest subscribers to Virgin Broadband and have had to deal with an endless list of service difficulties with little help from Virgin Broadband. For about 18 months their "Customer Support" was just not contactable. I have tried on 2 occassions to contact customer support in the last fortnight regarding the unusable broadband service. My broadband service was rendered almost unusable and is still dismal.

My troubles are:
Modem regularly refuses to connect connect to the internet.
The email server is often uncontactable.
The modem often needs to be reset.
Requires multiple attempts to log on to email server.
Requires multiple attempts to obtain a web pages.
Often times out.
Callers often complain my phone didn't ring and went straight to voice mail. When instantly called back again, it would be OK, except it cost them 2 calls.
Last time, it took me 14 attempts for the phone to "ring" customer support (just as well I wasn't needing 000).
Regularly when I call someone I get "Hi this is Virgin Mobile, you cannot call this number, etc."
The list goes on.

I have alway updated my modem, my signal strength is always "Good" and have alway accepted and followed the advise from customer support. Customer support has yet to solved any problem I have had.

I am literally pissed off, and certainly don't want to pay for the service I'm not getting. My personal belief is that their network is now over subscribed and they have not the bandwidth to supply the contracted service. I am literally being charged for a full tank of petrol when the tank is only quater filled. I call it theft. Where is the ACCC?

The conseqential inconvenience has been substantial.
(If you ring the TIO they will give you a hotline number in the telco you are having trouble with. In this case Virgin. I'd be seeking compensation too. -PZ)
Mark ShawPosted: 12/01/2010

re: Ever tried Virgin Mobile Broadband?
i havent tried virgin mobile broadband, and i dont think i will because of all the bad rep i hear here. i used iPrimus and sometimes it would drop out in a full coverage area. then i tried vodafone broadband... it is a cheap easy way to get the net as well. you spend $19, thats right. $19 and you get 550 mb of data for the month, but if you really want to test it out, ask to activate the network roaming feature, it works a treat!
expecially in willeton. vodafone rarely works where i am currently staying but telstra is abundant here. so that goes onto "roaming networks" and you still get the same data you paid for. no roaming network fee, no hidden costs to use the network for how long you want. and i believe you can take the dongle over seas as well. this is the best prepaid wireless broadband and i wont be changing any time soon.
Nigel PayPosted: 07/01/2010

re: Ever tried Virgin Mobile Broadband?
I have been on Broadband at Home for the past two years (yippee out of contract). For the past month (that I know off) the internet works but I cannot receive any phone calls from any other networks apart from Virgin. Thats right - noone can ring me unless they are on the Virgin network. All other callers are told the number is not connected. Virgin have been "looking into it" since early December and each time i ring the Indian call centre I get the same responce - the problem is being looked into...try restarting your modem....aagggghhh!!!!!!!!!!(I hope you're demanding a partial refund then Nigel. I would have said "asking for" but I really mean "demanding". -PZ)

What Your Facebook Profile May Be Telling ID Thieves

What Your Facebook Profile May Be Telling ID Thieves

by Jennifer Waters
Monday, January 10, 2011
Seemingly harmless information can help ID thieves unlock key to your identity.
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Your pet's name is a fraudster's best friend.
You may think you're revealing precious little when you tell your Facebook friends that you're dressing your pooch, Puddles, in your favorite color, red, for brunch at Grandma's on Sunday. But you've actually just opened a Pandora's box of risks.
The information consumers willingly, and often unwittingly, post on social-media websites can be a gold mine for fraudsters looking to steal everything from your flat-screen TV to your identity.
What's more, tidbits like your birth date, birthplace and the last school you attended are typically the challenge questions posed by bank websites and online retailers to verify your identity.
"Despite all the awareness that people have about identity fraud and privacy on social networks, there is a disconnect between [that and what they are] disclosing in online space and social environments," said Thomas Oscherwitz, chief privacy officer for ID Analytics, a San Diego-based consumer risk management firm.
More than 24 million Americans 18 years old and older are still leaving their social-network profiles mostly public, meaning they aren't activating privacy controls that limit who can see their information online, according to a Harris Interactive survey conducted in October for ID Analytics.
The survey also found that nearly 70 million U.S. adults on social-networking sites include their birthplace — one of the most common security questions asked by financial institutions — on their profiles.
"The information people are disclosing is not the entire piece of the puzzle but it's certainly helpful," Oscherwitz said. Thieves steal identities in pieces, he said, and layer them on each other for a clearer picture.
Say you post on a social-media site that you're at a tanning salon ahead of your week-long trip to the Bahamas the day after your birthday. You're telling potential burglars that not only are you away from home for an hour or so, but beginning Tuesday, your home likely will be empty for seven days.
"Even listing daily activities can let strangers know your routine and put you at risk," said Gail Cunningham, spokeswoman for the National Foundation of Credit Counseling.
Too much information can hurt you in other ways. John Sileo, a Denver-based identify-theft expert, said your online chatter could equip an ex-spouse with ammunition for a court challenge. Future or current employers could have a problem with information about your personal life that they deem inappropriate for a member of their staff, he said.
You also could be furnishing a would-be stalker with information about your whereabouts. "We are giving people the little pieces of our trust or access to our trust that allows them to get bigger things out of us," said Sileo, founder of the ThinkLikeaSpy.com newsletter.
Tips to Stay Safe
Here's some advice from Sileo, who wrote the "Facebook Safety Survival Guide," about protecting online privacy on all social-networking sites:
• Never post your exact date and place of birth. It's invaluable information to identity thieves, particularly when the two are bundled together.
• Never post your address, phone number or email address. This is plum information to scammers and marketers who are looking for nuggets of your identity.
• Control who can see your personal information. Many social-networking sites have privacy features, but they change often. Know what they are, stay on top of them and restrict your page to your real friends, not friends of friends or someone you met in a bar.
• Limit information about your activities. If you must brag about a trip or a fabulous party, do it after the fact.
• Remember that what you post is public and permanent. Don't put up embarrassing photos that you wouldn't show your grandmother. Don't complain about your job or your boss. Don't say something to or about someone that you wouldn't say to his face. Don't threaten others.
• Know the four types of Facebook users: friends, outsiders, businesses and enemies.
• You should know exactly who wants to be your friend or is asking you to link into their network. Some people will befriend your friends to get to you or your company.
• Be wary of seemingly harmless quizzes. When someone invites you to take a survey, say, "10 Things Others Don't Know About You" or "My Favorite Things," it may be designed to harvest your data. The name of the street you grew up on or your favorite vacation spot could be clues to your passwords.
• Before you share any information anywhere online about yourself or your workplace, ask this question: What would the consequences be if this information fell into the hands of my boss, competitor or people who don't like me?
Jennifer Waters is a MarketWatch reporter, based in Chicago.

7 Things to Stop Doing Now on Facebook

7 Things to Stop Doing Now on Facebook

by Consumer Reports Magazine
Wednesday, May 12, 2010
provided by
ConsumerReports
Using a Weak Password
Avoid simple names or words you can find in a dictionary, even with numbers tacked on the end. Instead, mix upper- and lower-case letters, numbers, and symbols. A password should have at least eight characters. One good technique is to insert numbers or symbols in the middle of a word, such as this variant on the word "houses": hO27usEs!
Leaving Your Full Birth Date in Your Profile
It's an ideal target for identity thieves, who could use it to obtain more information about you and potentially gain access to your bank or credit card account. If you've already entered a birth date, go to your profile page and click on the Info tab, then on Edit Information. Under the Basic Information section, choose to show only the month and day or no birthday at all.
Overlooking Useful Privacy Controls
For almost everything in your Facebook profile, you can limit access to only your friends, friends of friends, or yourself. Restrict access to photos, birth date, religious views, and family information, among other things. You can give only certain people or groups access to items such as photos, or block particular people from seeing them. Consider leaving out contact info, such as phone number and address, since you probably don't want anyone to have access to that information anyway.
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Posting Your Child's Name in a Caption
Don't use a child's name in photo tags or captions. If someone else does, delete it by clicking on Remove Tag. If your child isn't on Facebook and someone includes his or her name in a caption, ask that person to remove the name.
Mentioning That You'll Be Away From Home
That's like putting a "no one's home" sign on your door. Wait until you get home to tell everyone how awesome your vacation was and be vague about the date of any trip.
Letting Search Engines Find You
To help prevent strangers from accessing your page, go to the Search section of Facebook's privacy controls and select Only Friends for Facebook search results. Be sure the box for public search results isn't checked.
Permitting Youngsters to Use Facebook Unsupervised
Facebook limits its members to ages 13 and over, but children younger than that do use it. If you have a young child or teenager on Facebook, the best way to provide oversight is to become one of their online friends. Use your e-mail address as the contact for their account so that you receive their notifications and monitor their activities. "What they think is nothing can actually be pretty serious," says Charles Pavelites, a supervisory special agent at the Internet Crime Complaint Center. For example, a child who posts the comment "Mom will be home soon, I need to do the dishes" every day at the same time is revealing too much about the parents' regular comings and goings.
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