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01-09-2014, 11:51 AM
#3431
Member
Originally Posted by Snoopy
IMO your position is tantamount to saying you can decouple the net assets that make up the business from the 'intellectual property' that you bought into that was running the assets. The two have to work together for the business to have value. But I am sure that in your heart of hearts you know that anyway.
SNOOPY
What if you were to simply have bought the HER loan portfolio and not the 'operating business'? The $25m goodwill represents the value HNZ attributes to the future profits from writing new HER business using branding/market position/institutional know-how that they have acquired.
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01-09-2014, 12:20 PM
#3432
HER will be a HUGE earner in the years to come as the grey tsunami gets older.
We are well positioned
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01-09-2014, 01:01 PM
#3433
Snoopy - you got it, yes $25m for a leading HER business. The platform for growth now they have the people, processes, market knowledge and all that stuff,
.
So is $25m cheap or not in your view?
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01-09-2014, 03:30 PM
#3434
Originally Posted by belgarion
You think so? Track record to-date suggests maybe not. Why? IMHO NZ lacks the regulatory framework.
I think the poor record to date was because REL suppliers appeared to have run out of funds after the GFC,there was also a lack of promotion.
NZ's ageing, property loving population, who are asset rich cash poor are ideal customers for this product.
NZ Govt will be like other governments around the world,keen to keep "oldies" in their own home,where they enjoy better health and are less of a drain on social services.Therefore, it is in the Government's interest to have the regulatory framework in place.
ASB,HNZ and SBS will add respect to the REL market.
I expect Heartland will give an update at the agm as to how "the pipeline" is progressing.I believe they started advertising REL in Australia in July.
I did note Heartland said the processing timeframe was quiet long.Yet once they have a good system/s in place progress will follow.
Last edited by percy; 01-09-2014 at 03:31 PM.
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01-09-2014, 04:31 PM
#3435
Originally Posted by belgarion
Um ... only about a third are as asset rich as this urban statistic suggests. That aside ...
My "asset rich" mum was aiming to downsize in Akl by selling her 3-bed home for $1.5 million. Alas, its now only likely to bring in $2.25 million. And while the house is top-notch ... Its the land everyone wants.
Suddenly selling looks better than taking out a reverse mortgage? ... No, I jest. The rest of NZ isn't Akl (and thank someone for that!)
Has she considered selling her home and living on a Cruise ship until her money runs out?
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01-09-2014, 04:42 PM
#3436
Originally Posted by percy
Has she considered selling her home and living on a Cruise ship until her money runs out?
It can run out very quickly if they start needing care. OVer $200k pa if they need 24/7 carers if you go through agencys (maybe cheaper to go direct).
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01-09-2014, 04:43 PM
#3437
Originally Posted by belgarion
My "asset rich" mum was aiming to downsize in Akl by selling her 3-bed home for $1.5 million. Alas, its now only likely to bring in $2.25 million. And while the house is top-notch ... Its the land everyone wants.
Given they have very small LVR for these types of loans, the risk of bad debts has to be pretty small, even if the bubble bursts.
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01-09-2014, 05:20 PM
#3438
[QUOTE=belgarion;501885]No. She's worried her grand children won't be able to afford houses, schooling and healthcare in NZ
She is not alone !
Also a major concern is jobs for school leavers.
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01-09-2014, 05:21 PM
#3439
Originally Posted by Harvey Specter
Given they have very small LVR for these types of loans, the risk of bad debts has to be pretty small, even if the bubble bursts.
And with 8.35% interest rate at the moment can't go wrong can they. Fact sheet says 1.5% to 2.0% over major banks variable rates suggests non of this fixing nonsense either.
I see at the moment they have 3 year term deposits at 5.5% - guy from chris lee's website suggests that possibly reflects demand for equity release products. If this is case nearly 3% points margin is good stuff.
Hope they try to get the 2% premium forever. Not good for the old folks but great for shareholders and that's what's what needed eh. The old folks need the cash - Heartland give it to them ... at a cost.
Those %ages always seem small. People are always surprised that the gaps are quite big. Say HNZ borrow at 5% and lend to the old folks at 8.35% that essentially is a 67% mark up or a 40% gross margin (in retail parlance) .... something that Pumpkin Patch can't even manage some years.
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01-09-2014, 06:22 PM
#3440
Apologies for being lazy, anyone know off the top of their head when it goes ex divvy, (this divvy hound always keen on the next feed)
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