We must remember analysts are only "the paid help".
They are not investors, and have no "skin in the game,"so their views lack conviction...……………...lol.
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We must remember analysts are only "the paid help".
They are not investors, and have no "skin in the game,"so their views lack conviction...……………...lol.
Counting down to the 21st September.....About 25 days to go,or just 3 weeks this Friday..
5.11% net yield and increasing yearly,means I remain "well positioned."
10cps fully imputed divie is my next milestone
$2.50,then $3.00 all will be passed at some stage, on the way to $5.00......lol.
The Australian Securities and Investments Commission have warned Heartland Seniors Finance among others offering reverse mortgages to not be bastards towards elderly underarm bowlers.
https://www.smh.com.au/business/bank...28-p5007y.html
Boop boop de do
Marilyn
As we know Heartland's RELs in NZ have the backing of Consumer NZ.So no "bastards" or "underarm bowlers" in the team,which will position them well with Australian regulators.Most probably set the standard.
The Australian Government is letting retirees take out RELs,with the draw down being added to their weekly pension payments.So they are promoting RELs,but with no lump sum draw downs.This will add awareness to retirees of RELs, and will see the whole market for RELs grow substantially.
HBL Seniors, and other providers of RELs, offer lump sum draw downs,so I expect the market will expand for them.
May help to explain why Heartland are moving to their new structure so quickly.
Quite surprised the REL business is so small compared to normal home loans. MASSIVE scope for growth in the years ahead I reckon.
Saw an interesting survey yesterday that claimed one third of American's had less than $5K saved for retirement and the average was only $84K and that's including their tax efficient 401K savings programs. Probably similar figures in Australia with plenty of baby boomers looking to tap into the equity in their houses to maintain a reasonable lifestyle in retirement.
Had another look at the look through the near term dividend and what's the yield investment case going forward today.
$1.74 less 5.5 cents back shortly = $1.685 invested on an FY19 investment case basis.
Assume some growth in divvy this year, surely they won't be so mean as to keep it the same again, say 9.5 cps this year fully imputed as always.
9.5 / 0.72 = 13.1944 cps gross / 168.5 = 7.83% gross yield.
Key point of difference with this one as compared to some other yield investment cases is their ability to steadily grow the dividend over time. Pretty solid investment case on a yield basis with low interest rtaes forecast for the foreseeable future. Trading in line with its peer group on a PE basis.
Possibly "Fake News" but I hear a good number of people reach 65 with a mortgage on their home,while the lucky ones have repaid it.
It also appears the average amount people have invested in the share market is about $30,000.
These are "well off" people.
A huge amount of people need to work well past retirement age,
Yes REL business is small fry compared to usual house mortgages.
Yes I agree there is MASSIVE scoop for growth in the years ahead for RELs.
Australia and NZ have seen,and are seeing people living in 500,000 to $1.5mil homes without the income to afford any standard of living, after paying rates,insurance and power.
RELs give them a live.Freedom to stay in their home ,and enjoy some of their capital,which after all is theirs' to do with whatever they want to.Travel,home improvements,medical procedure,grand daughter's university fees,or even heat the old house to a liveable temperature.
It is in governments interests to keep old people in their own home, and that is why governments support RELs.
[QUOTE=percy;727114]Possibly "Fake News" but I hear a good number of people reach 65 with a mortgage on their home,while the lucky ones have repaid it.
It also appears the average amount people have invested in the share market is about $30,000.
These are "well off" people.
A huge amount of people need to work well past retirement age,
Yes REL business is small fry compared to usual house mortgages.
Yes I agree there is MASSIVE scoop for growth in the years ahead for RELs.
Australia and NZ have seen,and are seeing people living in 500,000 to $1.5mil homes without the income to afford any standard of living, after paying rates,insurance and power.
RELs give them a live.Freedom to stay in their home ,and enjoy some of their capital,which after all is theirs' to do with whatever they want to.Travel,home improvements,medical procedure,grand daughter's university fees,or even heat the old house to a liveable temperature.
It is in governments interests to keep old people in their own home, and that is why governments support RELs.[/QUOTEG
Good post I think RELs will become mainstream in a few years, I think this part of the business has huge potential.
The old diversidy target not working too well for Labour at the moment. Two ministers down. Both women. Just goes to show women in power can be equally as incompetent as men. Hopefully corporations are taking this on board and reflecting that proven merit should be the sole criteria for any appointment.
Farmgate milk price down ...but Opportunity for Heartland as dairy farmers might need more working capital
I am looking forward to catching up with deputy CEO Chris Flood, and CFO David Mackrell,on Monday the 10th September,at Heartland's "Retail Investor Roadshow."
I appreciate these presentations.Always learn something.
Thanks in advance Heartland for taking the trouble.