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Would you rather take out a reverse mortgage from the Australian Federal Government at 4.5%, with lump sums now available:
"two lump-sum advances in any 12-month period, up to a total value of half of the maximum annual rate of the age pension."
which equates to
https://budget.gov.au/2021-22/conten...heet_super.pdf
$12,385 per year for singles, while couples combined could receive around $18,670.
OR...
https://www.heartlandfinance.com.au/.../interest-rate
....borrow from Heartland Australia at 5.6%. Hmmmm?
SNOOPY
Pretty difficult to buy a luxury car, campervan, boat or whatever else is on your bucket list with $18,670...what's 1% per annum more when people are looking to live out their dreams in their latter years ?
Horses for courses, some people will be happy to work within the tight constraints of the Govt system, others will say, you know what, to heck with it, lets buy that dream toy and enjoy our golden years while our health is still okay.
From what I have seen and heard from luxury boat, car and campervan dealers there's an awful lot of people deciding to make "the most of life right now" because who knows what tomorrow may bring...
It is quite ironic for a coalition government to get into a business space occupied by Private enterprise. Nothing like a bit of socialism to fool the voters I guess. As Beagle says the maximum amount is quite limited these days. I guess for their government it beats having to increase the means testing thresholds and/or raising the Aussie old age pension
I think it makes RELs more respectable.
Years ago it was looked down upon to buy a car on Hire purchase.
Now it is "the norm".
With Aussie Govt making RELs respectable ,I expect HGH's Australian RELs sales trajectory to take off,as RELs become "the norm.".
Can anybody remember average size of reverse mortgage taken out in aussie,
The flippant answer is that, if the size of the average loan taken out last year was 'L'. This year the size of the equivalent loan will be:
L - $18,670
The best exposition of the Heartland reverse mortgage situation remains the 19th November 2018 Presentation.
On slide 21, the average Australian Reverse Mortgage at discharge was $113k with a duration of 6.6years.
Assuming an interest rate of 6% over the duration of the loan
That equates to a loan at inception of: L (1.06)^6.6 = $113k => L =$77k
An average is just that, and will reflect the average of a distribution of different sizes of loans. Slide 26 of the presentation would suggest that around 58% of loans are under $50k at origination. What percentage of originating loans is below $20k, the information that would be most useful to know, is not disclosed.
SNOOPY
Rising interest rates are good for lenders because deposit rates go up slower than lending rates. So the NIM widens. That's the theory anyway. But maybe the share price reflects that already.
Global dairy prices seemed to top recently (this time around) and now heading down
Bit like Heartland share price
But if interest today in HGH. Is there a reason for the climb at the end of the day?
Announcement today
Heartland market update
Thought jeez Jeff been holding back this year and he has had to own up and say profit would be much higher than $86m
No - just full year results announcement date
Buyers starting to get in before 24th results great to see.
Always concerned when we see the SP jump like today, usually starts heading back down with more momentum than going up.
Really ? Set your nerves at rest, step back and take a look at the last 12 months or a bit more where the share price has steadily ground its way up from its COVID Low. It will help you deal with those small retractions. I guess it depends on ones time frame for ownership. For myself I am wondering about putting in a sell order should it again reach >12% of my portfolio.....currently 8 and rising.
I'm currently at 8.5% portfolio allocation...feels like that's spot on for me. Happy to let it run up quite a bit further and quite sure it will.