HGH - Heartland Group Holdings

**iceman** · 29-06-2014, 08:06 AM

An interesting and informative article for people interested in reverse mortgages. I agree people need to be very careful and the providers should be responsible and explain thoroughly what people are doing.
But I also see this as good way for older people to enjoy the fruits of their life of hard work and savings.

I found this comment interesting :
"SBS Auckland area manager Matthew Isbister said one in 10 of his bank's customers were in the market for a reverse mortgage in Auckland.

"We're seeing a lot more interest in the product than three years ago."

http://www.nzherald.co.nz/business/n...ectid=11283811

**percy** · 29-06-2014, 08:30 AM

Thanks for posting the link iceman.I thought the article was very fair.Certainly growing demand. The SBS area manager confirms Heartland's comments "This has produced higher numbers in the sales pipeline than anticipated."
From what I am told you can tee up a home loan in a few days while a reverse mortgage takes a good few weeks.

**artemis** · 29-06-2014, 06:46 PM

I see from the article that Heartland has 4000 customers, presume that means reverse mortgagors. Agree they are not for everyone, but for folk with no close rellies, better than leaving the house to the cats' home.

**winner69** · 30-06-2014, 11:19 AM

Interesting interview with Bruce Mclachlan from Coop Bank
http://www.interest.co.nz/news/70645...business-5-yea

He was on radio this morning and mentioned Heartland

I get feeling that Bruce and Jeff have a lot of respect for each other and for each others businesses.

Maybe one day a get together

**percy** · 30-06-2014, 11:23 AM

Originally Posted by winner69

Interesting interview with Bruce Mclachlan from Coop Bank
http://www.interest.co.nz/news/70645...business-5-yea

He was on radio this morning and mentioned Heartland

I get feeling that Bruce and Jeff have a lot of respect for each other and for each others businesses.

Maybe one day a get together

Would make very good sense.

**percy** · 01-07-2014, 03:04 PM

I am sorry I do not keep the kind of records to correctly answer your question.I started to buy in reasonable numbers about May 2012.I think the share price was about 52 cents.As the company has progressed I have continued buying.I usually buy in 10,000/20,000 share lots.My last purchase was a few weeks ago at 89 cents.I would guess my average cost would be about 75cents.
Today's share price is 95 cents.At present we know the dividend has been 5 cents per share net or 5,26%,This works out at 7.39% gross.HNZ dividend is fully imputed.
On my 52 cents per share purchase the net yield is 9.61%
On my average of 75 cents per share the net yield is 6.67%
On Forbar's projected dividend year 2014 of 6.5cents my yields are [52cents] 12.5% and average cost [75cents] 8.67%and on todays sp[95cents] 7.8%.
And on Forbar's projected dividend year 2015 of 8 cents my yields are [52cents] 15.38% and av cost [75cents] 10.67% and today's sp [95cents]8.42%.
You have some astute friends belgarion.lol.

**iceman** · 01-07-2014, 06:45 PM

Interesting questions and friends you have Belg,

My first purchase, for about 40% of my current holding, was in November 2011 at 49c. I have slowly accumulated on several occasions since then, in 10,000 – 12,000 shares lots. My current average SP is 65.74 c. Last purchase 84c.
With a 5c dividend, the yield on my current HNZ portfolio is 7.60% net.
With the forecast 6c dividend, this will increase to 9.12%.
By utilising the 2.5% DRP, the above yield numbers increase to 7.79% and 9.35% respectively. Another way to look at the DRP is that I will effectively get all my money back, based on a steady 6c fully imputed dividend (?) , in 9.4 years (compounded).
But with forecast increased profits and dividends, I expect this to be 6-7 years in reality

I hope this is of interest to your friend and my fellow members of the Percy fan club !!!