I will be happy with any figure between $34mil and $37mil this year.A great achievement on year end 31/6/2013.
18 months out figure is the "pie in the sky" to me.
Australian business I may have to reserve judgement?
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You see this is where we are quite different Percy. If management give a range, I want them to deliver at the top half of that range. So for me, anything below $35.5mil will be a reduce signal. If they miss $34mil and I'm still holding, it won't be for long.
DISC: Still holding some(albeit at a reduced level)
Would you really want to be taking one of these, does'nt sound like such a great idea to me . Remember Banks don't have morals....................just the desire to earn money , lots of it, without worrying about the personal costs to their customers.
5 Reasons to Avoid a Reverse Mortgage
Watch out for these drawbacks of using a reverse mortgage to fund retirement.
One of the retirement planning resources that has gained interest in recent years is the reverse mortgage. For many retirees, it seems like a solid idea. You get access to the equity in your home, and the bank makes a mortgage payment to you. It turns your home into a source of income.
It’s a nice thought, but the truth about reverse mortgages is far from ideal. In fact, there are a few reasons to avoid getting a reverse mortgage as part of your retirement plan. Most of these reasons revolve around the fact that this type of income stream is actually a loan against your home’s equity that has to be paid back.
Here are five reasons to think twice about getting a reverse mortgage:
1. The fees are often high. Since a reverse mortgage is a loan, you are going to have loan-related fees. Origination fees and other fees on a reverse mortgage are typically rather high. A reverse mortgage is a home equity loan that isn’t decided based on your income or your credit score. As a result, there are unique risks to the lender, and some of those risks are offset by charging higher fees at the outset.
2. High interest rate. The interest rate on a reverse mortgage is often higher than the rate for a more traditional home equity loan. Between the up-front fees on the reverse mortgage and the high interest charges, you might be surprised at how little money you actually end up getting. It’s your equity, but the bank gets an awful lot of it.
3. Your heirs might not get the house. When you get a reverse mortgage, you aren’t expected to make payments on the loan. Instead, the loan is paid off when you sell your home. So, if you die, the home is supposed to be sold so that it can cover the loan amount. This means your heirs can’t have the house. It is possible for your heirs to keep the house if they pay off the reverse mortgage after you die. However, this usually means that the money has to come out of the estate, reducing the total that your children and grandchildren end up with. For someone hoping to leave a legacy, this can be a real drawback.
4. You have to repay the loan when you move out. Dying isn’t the only way that repayment on a reverse mortgage is triggered. In order to avoid making payments on the loan, you have to be living most of the time in your primary residence. You are considered “moved out” if you haven’t lived in the home for a year. This includes if you enter a long-term care facility. So, if you are no longer able to stay in your home, but you haven’t died, you have to start repaying your reverse mortgage—at a time when money is likely already tight. This can put a real strain on your budget.
5. You’re still responsible for home costs. Throughout all of this, you are still responsible for your home costs. You have to pay property taxes, keep up with the homeowners insurance, and pay for regular maintenance on the home. If you have enough equity, you can get a reverse mortgage big enough to cover all these expenses, but it can be a difficult situation nonetheless
But, but, but....
as a shareholder in HNZ, surely you will be delighted for them to write this sort of business?
I think we all would agree with you,yet govts in USA and UK say people doing this and remaining in their own home is the best thing for them.
I would not borrow money to buy a car.
Yet people are wanting to borrow money for cars,houses,farm,stock,school fees,medical expenses,boats ,planes and much more.
It is freedom of choice whether someone wants to stay in their own home or not.Sentinel are supplying a service to those who want it.They make sure the person wanting the loan get their own legal advice. Why is the demand there?
I think people having a "trusted bank" in Heartland owning Sentinel will give people more comfort/security in this product.
I suppose far too many New Zealanders have all their wealth/capital tied up in their home,so I expect Sentinel will grow very quickly with our ageing population.
Kiwigold - Agree but if people want them fine.
A much better way to do (in a one kid family) would be to gift house to kid. They then get loan taking advantage of lower interest rates and fees (maybe even a free tv) on the presumption they have a job to service. Their inheritance will be more. You should be able to structure better but you get the point.
Result out.
Net profit $16.7mil.
EPS 4.5 cents.
NTA.89cents
Dividend 2.5cents [you were right Paper Tiger]
Equity Ratio 15.3%
Non core property down to $99.2 mil and projected to be $67.5mil at 30/6/2014.
All boxes ticked.Well done Heartland,and new acquisition is both substantial and exciting, being focused on NZ's ageing property owning population.
We shareholders remain "well positioned."!!!!! [sorry Paper Tiger]
We might be "well positioned" in a number of shares. However I would like to move to "reaped big rewards" at some stage before I retire from these well positioned shares :)
Good result and look forward to the full year result.
Not everyone has offspring of course, or even rellies they like. Some offspring are not willing or able to be involved. And there might be rather a lot of older folk whose aim in life is for the cheque to the undertaker to bounce. And good for them! (OK, not so good for the undertaker.)
Yes a steady and healthy result Percy. NTA 89c according to report. Very pleasing to see the benefit of becoming a Bank clearly coming through in this report with a big reduction in cost of funds.
Non core property being worked on nicely and also exiting some lower margin and higher risk rural lending from the PGW loanbook.
But we are seeing increased competition in the business and rural sectors which they have to deal with, but they seem to be trying to stay away from direct competition with the big banks and focus more on livestock lending in the rural sector.
Motor vehicles showing a healthy increase while they continue to reduce the home mortgage book with more than 50% of the re-financing moving to Kiwibank where we clip the ticket.
So a pleasing steady as she goes result with a nice little divie. We are well positioned indeed.
I don't hold these but have looked into Sentinel reverse mortgages as a future option and if you want to use your money rather than leaving it to others who don't need the money then why not? At least you get to enjoy the fruit of your labor whilst still alive Disc-Held Marac bonds previously
NTA is at least 1.5cps higher than I calculated recently, lose one point.
I actually said that this dividend would be 2cps -lose another point.
The accounts are actually a little better than I expected at first glance.
A quick look at the disclosure statement shows that the banks tier capital ratios are 14.69% at Dec13, for those of us who like to worry about such things.
Best Wishes
Paper Tiger