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19-12-2018, 11:04 AM
#11751
Junior Member
![Quote](images/misc/quote_icon.png) Originally Posted by iceman
ANZ NZ has come out and said they will need additional $ 6-8 BILLION to meet the new capital requirements. BNZ, Westpac and ASB have all said they need large numbers. All the aforementioned, as well as Kiwibank, have said there is no question mortgage and other lending rates need to go up.
Lets see if the Reserve Bank actually goes ahead with this. Can't imagine the Government being excited about it.
Interesting times as we move towards a period of rising interest rates and reducing credit availability all the whilst central bank interest rates remain at all time lows with their hands tied in this regard. When both begin moving up......
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19-12-2018, 11:19 AM
#11752
![Quote](images/misc/quote_icon.png) Originally Posted by Fred_Rubble
Interesting times as we move towards a period of rising interest rates and reducing credit availability all the whilst central bank interest rates remain at all time lows with their hands tied in this regard. When both begin moving up......
Interesting times indeed. I think HGH REL holders wil be in an OK position They wil be capital rich and can afford any increase in interest rates and they will still have access to a REL due to HGH's low equity requirement.
The people I am very concerned about are those that bought property with a bank mortgage when the market was at a high. Taking a flattening / reducing property market will push people closer to negative equity. Add in increased costs of servicing that debt - well things are potentially going to get very ugly.
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19-12-2018, 07:08 PM
#11753
Member
The Aussie house market is down 10% which is worrying
At the moment it is only a consultation paper seeking out public views on proposal to increase min level of regulatory capital.
Cut off end of March, so the uncertainty will drag on for months.
Last edited by alex f; 19-12-2018 at 07:14 PM.
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19-12-2018, 07:14 PM
#11754
![Quote](images/misc/quote_icon.png) Originally Posted by alex f
The Aussie house market is down 10% which is worrying
Yes for Australian Banks who are heavily exposed to residential and commercial property lending.
No affect for HGH's Australian REL lending.
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19-12-2018, 08:00 PM
#11755
![Quote](images/misc/quote_icon.png) Originally Posted by percy
Yes for Australian Banks who are heavily exposed to residential and commercial property lending.
No affect for HGH's Australian REL lending.
Yup!. HGH have a huge amount of equity fat in their REL's. 10% drop is neither here not there to them
(Disc HGH just avoiding my stoploss trigger)
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19-12-2018, 08:09 PM
#11756
I said I would not buy any more HGH.
However, I changed my mind and brought a few more for myself as a Christmas present today.
Only present I know that will keep paying me fully imputed divies,and if a couple of brokers' forecasts are right, they will be increasing divies.!
Last edited by percy; 19-12-2018 at 08:25 PM.
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19-12-2018, 08:30 PM
#11757
![Quote](images/misc/quote_icon.png) Originally Posted by percy
Yes for Australian Banks who are heavily exposed to residential and commercial property lending.
No affect for HGH's Australian REL lending.
Can you explain why there is "no affect" [sic], i.e. nothing zip nada effect, on HGH REL lending regardless of the market valuations on the property that the punters converting to REL are exposed to? I think you're pushing the boat out a bit far here, but still keen to understand why you think that the market valuations of ones residential property have no effect on a conversion to a REL.
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19-12-2018, 08:40 PM
#11758
![Quote](images/misc/quote_icon.png) Originally Posted by Baa_Baa
Can you explain why there is "no affect" [sic], i.e. nothing zip nada effect, on HGH REL lending regardless of the market valuations on the property that the punters converting to REL are exposed to? I think you're pushing the boat out a bit far here, but still keen to understand why you think that the market valuations of ones residential property have no effect on a conversion to a REL.
Read HGH's 19th November announcement; Heartland Investor Day Presentation."Reverse Mortgages"
Then should you disagree with my "no affect" comment, I think we will have to agree to disagree.
Last edited by percy; 19-12-2018 at 08:51 PM.
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19-12-2018, 08:59 PM
#11759
![Quote](images/misc/quote_icon.png) Originally Posted by percy
Read HGH's 19th November announcement; Heartland Investor Day Presentation."Reverse Mortgages"
Then should you disagree with my "no affect" comment, I think we will have to agree to disagree.
Thank you, I will read that, again, maybe I missed something important. It doesn't stand to reason that a bank would disregard a property's market valuation when considering how much they would lend on the said property.
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19-12-2018, 09:00 PM
#11760
![Quote](images/misc/quote_icon.png) Originally Posted by percy
I said I would not buy any more HGH.
However, I changed my mind and brought a few more for myself as a Christmas present today.
!
Cant go wrong with that. Even a pair of socks would wear out in a couple of years and you would have nothing to show for your gift. (I treated myself to a santa sack load of OCA)
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