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09-12-2015, 05:53 PM
#6821
Reverse mortgages work well for folk with nobody they want to leave their assets to. Better to spend up than live frugally so the dog's home gets the assets.
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09-12-2015, 06:33 PM
#6822
Axe thinks if you have the financial intelligence to reach retirement age without having a mortgage and owning your home then you probably have enough financial intelligence to decide whether a reverse equity loan is for you. Otherwise you can find advice here..... http://www.afa.org.nz/
Naysayers seem to harp on about "oh but with that interest rate blah blah blah after 30 years the loan will become 1million blah blah outrageous!!!" but they never seem to think that the house may appreciate in value over the 30 years.
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09-12-2015, 07:12 PM
#6823
Originally Posted by axe
Naysayers seem to harp on about "oh but with that interest rate blah blah blah after 30 years the loan will become 1million blah blah outrageous!!!" but they never seem to think that the house may appreciate in value over the 30 years.
Right on Axe! Fortunately Heartland knows what it's doing with this kind of lending (as you do too) so we don't really need to take much notice of those who haven't the wit to understand how it works.
While it's probably highly unlikely, it is possible that property values could decline over 30 years rather than increase. In that case though I'm pretty sure there would be blood on the floor in plenty of banks and other businesses, not just at Heartland.
"Don't be afraid to take a big step if one is indicated. You can't cross a chasm in two small jumps." David Lloyd George
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09-12-2015, 09:24 PM
#6824
Originally Posted by axe
Axe thinks if you have the financial intelligence to reach retirement age without having a mortgage and owning your home then you probably have enough financial intelligence to decide whether a reverse equity loan is for you. Otherwise you can find advice here..... http://www.afa.org.nz/
Naysayers seem to harp on about "oh but with that interest rate blah blah blah after 30 years the loan will become 1million blah blah outrageous!!!" but they never seem to think that the house may appreciate in value over the 30 years.
Your hypothesis fails to consider a surviving partner (wife or husband) who has never had anything to do with the family finances but is left with property, often the family home.
This in my observation is more commonly a wife left with the family home who in your estimation is correctly more than likely financially lacking 'intelligence' but must somehow and at some stage make the horrible decision to abandon the family home that they have put their lives into, for the sake of a new roof over their head and perhaps the care and attention they deserve until their time comes.
Axe .. gross generalisations and assertions related to financial intelligence related to property assets of the aged, and their options should they have access to informed advice, may be well intentioned but they are ill-informed.
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09-12-2015, 10:48 PM
#6825
Originally Posted by Baa_Baa
Your hypothesis fails to consider a surviving partner (wife or husband) who has never had anything to do with the family finances but is left with property, often the family home.
This in my observation is more commonly a wife left with the family home who in your estimation is correctly more than likely financially lacking 'intelligence' but must somehow and at some stage make the horrible decision to abandon the family home that they have put their lives into, for the sake of a new roof over their head and perhaps the care and attention they deserve until their time comes.
Axe .. gross generalisations and assertions related to financial intelligence related to property assets of the aged, and their options should they have access to informed advice, may be well intentioned but they are ill-informed.
BAA - You seem to be making make a sexist observation that a women is likely to be lacking in financial intelligence.
I did not make a comment that anyone was lacking financial intelligence. Those were your words.
In the process of trying to inform me that my generalization is incorrect you make an (observation) generalization of your own.......
You also completely missed the point of my post. People can make their own decisions and take advice when and where and if they want.
Last edited by axe; 09-12-2015 at 11:18 PM.
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09-12-2015, 11:15 PM
#6826
I think we need to remember that the home equity loans or reverse mortgages are very low LVRs.
A couple that are both 70 years old can borrow a maximum of 25% of their home value, according to the calculator on the HNZ website.
It would have to be absolutely exceptional circumstances for anyone to have to
"abandon their homes" Baa Baa, whether a man or a woman .
By the way Axe I think you´re being a bit harsh on BaaBaa. I didn´t read his post as sexist and don´t think that was his intention at all.
I am sure Heartland fully understands the risks related to these loans.
I don´t have any doubt that these types of loans are well suited for many people and I believe they will become increasingly popular. HNZ has first mover advantage here and from all accounts, appear to be doing a good job with it.
If you read their website and the info on these loans, I get the feeling that HNZ is doing this responsibly and educating people on the pros and cons of them.
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10-12-2015, 10:56 AM
#6827
Read more » Looks like the squeeze is on for motor vehicle finance and new car margins.
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10-12-2015, 11:36 AM
#6828
Originally Posted by Joshuatree
Read more » Looks like the squeeze is on for motor vehicle finance and new car margins.
Therefore Heartland, by virtue of being a bank, and enjoying lower cost of funding remain "well positioned."
I also take from the article "new car" dealers are having to carry larger stocks of cars.
This will put pressure on their banking arrangments,and will most probably mean they will look to sell their MTF shares,which will improve their chances of more funding from their bank.ie cash for their MTF shares and free themselves of the recourse loan liabilities they have with MTF..
Last edited by percy; 10-12-2015 at 11:42 AM.
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10-12-2015, 12:13 PM
#6829
Originally Posted by percy
Therefore Heartland, by virtue of being a bank, and enjoying lower cost of funding remain "well positioned."
..
I wonder how often Jeff will say 'well positioned' tomorrow
Business people being so clever you would think they would come up with something different and a find a new buzz word for being 'well positioned'.
Well positioned is past its use by date and is hearing it so often is getting rather tiresome
”When investors are euphoric, they are incapable of recognising euphoria itself “
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10-12-2015, 12:26 PM
#6830
SIGNIFICANT..!!
used once,=hold
used twice=Buy
Used thrice= Strong buy.
Used four or more times=sell your house and buy,buy,buy,buy.
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