Bank stocks

[BIRMANBOY]

As a concept directed to what aim? Are you looking to trade the shares or as a dividend stock? Its returning 1.29% as a dividend but that is based on last year when the dividend was reduced to Au $0.31 from AU 1.74 to 1.88 for previous 6/7/8 years. Will it return to paying out those pre-covid dividends? Hmmm.what do you think? As a concept of borrowing on your house to fund this transaction not sure if that is prudent but interest rates are certainly low (at the moment) and who knows where that will go. As a buy and hold for growth if you look at the 5 year chart you might consider that you may have missed the boat? There may be better targets for your interest?

I am considering buying shares in Westpac NZ. I am not seeking advise on WBC as that is not appropriate on this forum.
What i would be interested in is any any comments on my proposal as a concept.
I am 63, have 95 % equity in our residential property with a market valuation around $800 K. I have a superannuation plan which I have been contributing to since 1990 I work for a district health board and plan to work for another 4 year. I have no interest in investment property and remain somewhat concerned about this sector once interest rates return to normal ( I well recall the mid 1980s when my mortgage was 21%l.
I am considering an add on to our mortgage to purchase 2000 shares in Westpac NZ. Any comments would be of interest

[percy]

I am considering buying shares in Westpac NZ. I am not seeking advise on WBC as that is not appropriate on this forum.
What i would be interested in is any any comments on my proposal as a concept.
I am 63, have 95 % equity in our residential property with a market valuation around $800 K. I have a superannuation plan which I have been contributing to since 1990 I work for a district health board and plan to work for another 4 year. I have no interest in investment property and remain somewhat concerned about this sector once interest rates return to normal ( I well recall the mid 1980s when my mortgage was 21%l.
I am considering an add on to our mortgage to purchase 2000 shares in Westpac NZ. Any comments would be of interest

I can only say what I did.I concentrated on paying off our mortgage. I worked until I was 69 as I loved ,selling books to school libraries .
Having three sources of income was great once we were debt free.Book selliing income,Govt super,and divies. Wife and I cashed in our Kiwi Savings when we turned 65 ,and invested the funds in the market,.[with great success].
So I would suggest paying off your mortgage.Great feeling.

[percy]

I am considering buying shares in Westpac NZ. I am not seeking advise on WBC as that is not appropriate on this forum.
What i would be interested in is any any comments on my proposal as a concept.
I am 63, have 95 % equity in our residential property with a market valuation around $800 K. I have a superannuation plan which I have been contributing to since 1990 I work for a district health board and plan to work for another 4 year. I have no interest in investment property and remain somewhat concerned about this sector once interest rates return to normal ( I well recall the mid 1980s when my mortgage was 21%l.
I am considering an add on to our mortgage to purchase 2000 shares in Westpac NZ. Any comments would be of interest

I can only say what I did.I concentrated on paying off our mortgage. I worked until I was 69 as I loved ,selling books to school libraries .
Having three sources of income was great once we were debt free.Book selliing income,Govt super,and divies. Wife and I cashed in our Kiwi Savings when we turned 65 ,and invested the funds in the market,.[with great success].
So I would suggest paying off your mortgage.Great feeling.

[Scrunch]

I am considering buying shares in Westpac NZ. I am not seeking advise on WBC as that is not appropriate on this forum.
What i would be interested in is any any comments on my proposal as a concept.
I am 63, have 95 % equity in our residential property with a market valuation around $800 K. I have a superannuation plan which I have been contributing to since 1990 I work for a district health board and plan to work for another 4 year. I have no interest in investment property and remain somewhat concerned about this sector once interest rates return to normal ( I well recall the mid 1980s when my mortgage was 21%l.
I am considering an add on to our mortgage to purchase 2000 shares in Westpac NZ. Any comments would be of interest

At the current super-low borrowing rates, there's a decent chance that equities could provide a higher return than the cost of borrowing. While conventional wisdom is to repay the mortgage then invest, it isn't silly to invest first. There is basically no substitute to actually investing to learn.

One stock with a $50k investment. There can be a place for a focused portfolio of only one or a few stocks. BUT it adds to the risk profile and should only be used by experienced investors who properly understand the risks they are taking. Read some of the ATM thread. In your situation I would suggest choosing at least 5-10 shares across different industries (so not ANZ, WBC, HGH). If you see a $60k+ portfolio as the end-game in 3 years, consider making three sets of 20k investments across 2021, 2022 and 2023. This way you aren't trying to time 100% of the investment at one time. Also if you find equity investments aren't for you, you have learnt that before going more all-in.

As an aside, check your mortgage as to whether there is any age limits. When we refinanced recently we had a shorter than expected term as the bank effectively imposed an age 70 limit on the borrowing provided. If you had similar terms, any redraw may need to be repaid quite quickly.

Good luck

[Waltzing]

amazing performance by the banks as all our under water position except WBC bounce past cost price from the days of the royal commission on banking. In fact we are miffed that had we held on another month generous profits would have emerged after being underwater for 3 years in some portfolios...

i get very nervous when things start to look too good to be true..

[Waltzing]

The banks are where the fight between the reserve banks and the market is being played out.

Anz shares are an extreme example of what a rising 10 year black hole does to the market.

It s hard lesson to learn when positions that were struggle for the last 2 years are blow sky high in the space of 2 months.

This is where the damage to the market is being done. The banks are now a big trade again.

We are looking to rotate if the bond buying programs look to be ineffective at the long end of the curve.

[Waltzing]

Reports of AUS banks may start share buy backs as they have access capital.

DI SNOOP got any thoughts on the capital reserves of AUSSI banks?

certainly not applicable to NZ banks.

[greater fool]

Reports of AUS banks may start share buy backs as they have access capital.

DI SNOOP got any thoughts on the capital reserves of AUSSI banks?

certainly not applicable to NZ banks.

https://www.smh.com.au/business/bank...28-p57eon.html

Banks are under pressure to start raising interest rates on longer-term fixed rate mortgages to preserve profits amid a blow out in funding
costs on global financial markets.
The Commonwealth Bank last week became the first of the big four to move upwards on long-term rates, blaming higher funding costs as it
increased its four-year fixed rate by 0.2 percentage points to 2.19 per cent, as it also cut two-year rates.

[iceman]

https://www.smh.com.au/business/bank...28-p57eon.html

Banks are under pressure to start raising interest rates on longer-term fixed rate mortgages to preserve profits amid a blow out in funding
costs on global financial markets.
The Commonwealth Bank last week became the first of the big four to move upwards on long-term rates, blaming higher funding costs as it
increased its four-year fixed rate by 0.2 percentage points to 2.19 per cent, as it also cut two-year rates.

I question whether there is any need for NZ banks to increase even their long term rates anytime soon. They are currently flush with money on short term deposits and have hardly touched the $50 or so Billion dollars the RB has printed. It's just sitting there and the RB paying the trading banks 0.25% interest on it in their accounts. The RB will not want to do that for too long so what to do ? Reduce OCR or even make it negative to force the banks to actually lend it out into the economy. The FED is in the same situation. But hang on, they can not lend it to residential properties as the Government doesn't want that. They're in a real bind on what to do but I'd be very careful in "fighting the Fed" on this one. The World's reserve banks are hellbent on keeping interest rates low and flooding the World economy with cheap money to raise economic growth & inflation.

[dabsman]

Looking forward to share buybacks with the massive reserves the banks currently have. Prefer a buyback to a dividend with no access to franking credits