HGH - Heartland Group Holdings

[winner69]

This Chris guy onceGeneral Manager of Commercial Banking for ANZ. National Bank


Percy's mate Jeff once the managing director of corporate and commercial banking for ANZ National Bank.

Probably old drinking buddies from days paste

[Xerof]

Often how it goes. Should be noted that the old NBNZ were NZ's heaviest supporter of agricultural sector, and under Sir JA guided that sector through some pretty dark moments. These guys should know what they are doing, despite being over 35.......

[Beagle]

There's no substitute for experience. Older highly experienced blokes have seen almost all the B.S. there is to be seen and accordingly can see the wood for the trees and smell B.S. coming from a mile off...like an experienced old Beagle dog at the airport...remind me again how many finance companies we saw fall over due too loose lending policies, nuff said.

[vorno]

vorno ... You left out the best bits ...

Chris joined Heartland in December 2013 as Head of South Island and has over
30 years banking experience most recently as CEO of UDC and prior to that,
General Manager of Commercial Banking ANZ National Bank.


Experience in spades!

I only show you the cake!

[psychic]

Don't think anyone was implying it was a bad move for HNZ snaps. UDC is an excellent Company with a great loan book, always poorly imitated by its competitors eg Marac in its various forms (incl under HNZ) So great to get Chris aboard. Thanks Winner for pointing out the "retiring" bit, all fits now.

[percy]

Heading in the right direction ......good question

He did "retire" from UDC so probably bored with "retirement" and joined HNZ when Jeff asked him

Maybe he has some experience in niche areas

But HNZ does seem to be getting pretty experienced ......no sign of energetic innovative people getting on board to pump things up a bit

The Sentinel Reverse mortgages should "pump things up a bit" and will benefit from "experienced" people driving it.

[percy]

An article in The NZ Hearald, headed "Top Shop chain set for NZ launch" may hold the answer for The Carter Group's recent sell down of Heartland.
Carter Group are taking a holding in Top Retail who hold the rights to own,develop and operate the London based brand in NZ.
CEO of Carter Group is Mary Devine,Briscoes director and ex CEO of Ballantynes and ex CEO of EziBuy.

[winner69]

This from an email from Personal Investor - Australian view.

The Commission of Audit has recommended including homes above a certain value in the means test that determines who gets the age pension and how much.

Under the proposal, homes valued in excess of A$500,000 would be assessable for singles, while for couples the trigger would be A$750,000.

The family home is currently exempt from the assets test but the commission argues this is inequitable because it means high levels of wealth are sheltered. It suggests a more comprehensive means testing regime be put in place by 2027-28.

If this proposal is picked up by the federal government, it would see a sizable group of retirees required to call on the equity in their homes to help fund their retirement.

It would be a brave government that "forced" pensioners to sell their homes to release that equity, which makes reverse mortgages a likely tool for retirees who need to convert their home into cash flow.

Even now, a reverse mortgage can be an alternative to "downsizing" into a smaller and cheaper home to release funds for retirement.

A reverse mortgage allows homeowners to access a loan, or a regular stream of cash (an annuity), using their home as collateral. Borrowers continue to live in the property until death - or they move into aged care - after which the loan is repaid from the sale of the house.

The mortgage can apply to the full value of a property, or borrowers may be able to access "residual value protection", allowing them to set aside a portion of the house's value to be available for aged care or as an inheritance.

Interest rates are generally higher than for standard home loan products due to less competition in this sector and higher risks for the lender.

For some years now, on the back of the lessons learnt from the global financial crisis, there have been government-imposed rules around "negative equity" that prevent lenders from extracting repayments beyond the value of the house. This means lenders can suffer a loss if the loan amount exceeds the value of the house at the date of the sale, something that may happen in a softening property market.

Reverse mortgages involve compounding interest, where interest charges are added onto the loan as they accrue. This means the loan amount can rise quickly.

Taking out a reverse mortgage can affect the availability of funds for major items such as aged care and bequests, and it can have an impact on other family members who may live in the house.

Ultimately reverse mortgages demand a much higher degree of financial literacy from individuals, who may need professional advice on issues such as tax and Centrelink implications.

Despite the fact that reverse mortgages helped send mortgage insurer the Federal Housing Administration bankrupt in the US, the market there is returning.

How would increased demand for reverse mortgages change the Australian financial system?

[B]The bulge of baby boomers entering retirement, along with a change to means testing along the lines proposed, could be expected to lead to an increase demand in such products[/B]. In theory, new lenders would be attracted into the market, thus increasing competition and driving interest rates down (in relative terms, against the risk-free rate).

Three main sources of risk are apparent, the first of which is declining real estate values, or the risk of negative equity. The loan amount may end up being larger than expected if the borrower enjoys a long life or property values fall.

Second, with a reverse mortgage the lender generally has no recourse to assets other than the home. Third, at this stage of life borrowers may neglect maintenance and property improvements, eroding the value of the home.

Many of these risks, in particular real estate values and an ageing population, are systematic and may become systemic. Should reverse mortgages enjoy significant growth, as projected, Australian lenders would have increased exposure to house price risk. If house prices dropped, more defaults would occur.

The impact of growth in reverse mortgages on the housing market itself may be limited, as properties are sold only after death or upon a move into aged care. But there may be a decrease in downsizing activity if these products become more popular.

Currently, reverse mortgages are mainly provided by the banking sector, which is already over-exposed to mortgages. At the same time, the superannuation sector is looking for long-term investment opportunities. Why not create financial products where super funds provide cash flow for retirees in exchange for access to the value in their homes?

Some super fund members may not want further exposure to Australian real estate, particularly if they are already house owners, but this could be an additional option in the current portfolio of investment choices offered by funds to their members.

The outcome might be comparable to the situation in overseas pension systems - such as Germany's - where pensions are organised to a large degree as intergenerational wealth transfers, where one generation pays for the next generation.

Such a system could increase the resilience and efficiency of the Australian financial system.

Harry Scheule is associate professor, finance, UTS Business School at University of Technology, Sydney. This article was originally published on The Conversation.

[percy]

Thanks for posting that very interesting article Winner69.

[Joshuatree]

Yes thanks guys and int to re carter selldown. Hope reverse mortgages gain traction.need to break down the sacred cow of home ownership and negative legacy experiences of past reverse mortgage companies greed and hidden/small print details.