HGH - Heartland Group Holdings

[winner69]

Saw that ad on TV last night aimed at the oldies

Heart wrenching story until the For Sale sign is taken down and a happy ending. Well done Heartland Marketing team. Love the music that goes with it.

Wonder if it is getting the oldies interested? Hope so

They said HER stuff should get some momentum in H2, maybe this media is the trigger

[Beagle]

Yes.... upon reflection although on first viewing I found the advertisement elongated and wondered about the cost efficiency, I can see how this sort of "emotional approach" if that's the right term for it, might have considerable appeal to the target market. Overall management at HNZ impress me, a company that does what it says it will and continues to build a highly credible track record of growth.

[winner69]

Yes.... upon reflection although on first viewing I found the advertisement elongated and wondered about the cost efficiency, I can see how this sort of "emotional approach" if that's the right term for it, might have considerable appeal to the target market. Overall management at HNZ impress me, a company that does what it says it will and continues to build a highly credible track record of growth.

I would think that this sort of approach is the start of a long campaign with an evolving story and not just on TV but on other media.

Hecht Granny looked happy eh

[noodles]

Saw that ad on TV last night aimed at the oldies

Heart wrenching story until the For Sale sign is taken down and a happy ending. Well done Heartland Marketing team. Love the music that goes with it.

Wonder if it is getting the oldies interested? Hope so

They said HER stuff should get some momentum in H2, maybe this media is the trigger

Jeez, I nearly cried with happiness as the sign came down.

No doubt the TV version is shorter?

[ziggy415]

I would think that this sort of approach is the start of a long campaign with an evolving story and not just on TV but on other media.

Hecht Granny looked happy eh

So granny takes $100,000... to tide her over till she dies.....but she,s a tuff old bird and she lives till 95 years old....does this mean heartland gets no return on their $100,000 for maybe 20 odd years

[Harvey Specter]

So granny takes $100,000... to tide her over till she dies.....but she,s a tuff old bird and she lives till 95 years old....does this mean heartland gets no return on their $100,000 for maybe 20 odd years

No cash return but the interest will be accruing at a rate higher than normal mortgage costs.

[ziggy415]

No cash return but the interest will be accruing at a rate higher than normal mortgage costs.

so the HER portion of the business could be years away from recieving any money let alone make a profit...to me it just doesnt add up....throw in the peer to peer lending platform that will be slow to gain traction and heartlands profit may become a bit stagnant......i think they should stick to the consumer finance business,,,,....

[Beagle]

Taking Stock 23 April 2015 - Chris Lee


THE Heartland Bank executive Andrew Ford is no greenhorn, having had at least a decade in executive positions at Heartland and its predecessor, Marac Finance.


At Marac he was one of several senior executives who was let down by the company’s weak leader Brian Jolliffe and by what proved to be a two-tier board of directors, with one tier proving to be inept as well as weak.


Ford was part of the transition team that converted Marac into a successful focused small bank, well led by Jeff Greenslade, and today Ford has some responsibility for Heartland’s move into Home Equity Release Loans, or reverse mortgages as these loans used to be called.


Ford was quoted at the weekend as having been moved by the heartfelt correspondence Heartland has received from senior citizens who have taken out these loans to enable them to maintain their living standards, and stay in their houses, rather than be short of cash and forced to move.


It is easy to believe that the borrowers would record their gratitude for the spending money they have accessed at a time when housing price rises are leading to higher-valued estates but also leading to higher rates and insurances for the home-owners.


One of the Sunday papers sought last week to emphasise the interest rate cost of these home equity loans, now more than 8%, and expressed concern that a borrower might end up ‘’eating his house’’.


Indeed if Heartland lent $100,000 to a 60-year-old taking a mortgage over an $800,000 house, when the owner was 84 years old the house would be fully mortgaged, if the interest rate averaged 9% and the house price rise over the 24 years was nil.


Quite rightly the Reserve Bank would be frightened for Heartland’s future if it made such a loan, and would force Heartland to provide more capital to recognise a higher risk-weighting of these loans.


Of course the example and assumptions quoted – 60 year olds borrowing $100,000 for 24 years, no house price rises, interest rate 9% - are all chosen to produce a ridiculous outcome.


Home equity release loans are currently priced nearer 8%, borrowers begin their loans at ages nearer 75 than 60, the maximum amount to be lent is calculated with common sense, and lenders have discovered the average term of such a loan is eight years not 24.


The newspaper item was prepared on false assumptions, presumably to achieve a ‘’newsworthy’’ angle.


Andrew Ford will have been exactly right when he noted how much these loans have helped some people.


The loans are not intended to meet the needs of everyone.


Many retired people enjoy moving to smaller homes with smaller gardens, some enjoy moving to retirement villages, some have sufficient money to stay put and employ a gardener and a few choose to enter into home equity release loans. The equity in one’s home is available to be used as the owner sees fit.


My guess is that over the next 20 years, people will live longer and have better health, and dare I say it, governments will struggle to finance an ageing population’s expectations of living standards and healthcare.


In this environment, home equity release loans may become much better understood, and more regularly used.


One hopes that Sunday papers will eventually discover that banks and retired people rarely enter into stupid arrangements.

[winner69]

Hey Percy - that a brilliant piece you wrote for Taking Stock this week. Congratulations

You sorted the buggers out eh mate .....stupid media.

I reckon that ad on TV will do wonders and there will be really strong growth starting to come through this year ......might need to readjust my forecast UP

[Baa_Baa]

What are you saying Winner? Fess up, don't leave the punters wondering or in limbo.

Hey Percy - that a brilliant piece you wrote for Taking Stock this week. Congratulations

You sorted the buggers out eh mate .....stupid media.