coldingham
07 Feb 2017
Re: Trading Update The problem is where to invest the proceeds to produce a similar return?I agree that with 50% appreciation since I bought the time might be right to take some profit, but forward forecast looks well managed unless the government does something stupid. (Always a possibility)
Boring Bernie
07 Feb 2017
Trading Update Bunging the numbers quoted in a calculator shows operating profit for H1 should be up around 9%, which is pretty much what I expected.It's getting periously close to the point where I'll likely be reducing here.
villafan1
03 Feb 2017
Re: Leasehold Scandal Yes, I think it's underhand too. I must admit, the conveyancing thing baffles me. One would think the solicitor would be able to decipher it. But I (on Vic Derbyshire) they did allude to the fact that wording was so deliberately ambiguous with regard to the lease/ground rent that it was almost impossible to clarify. I never realised so many houses were leasehold till I watched the programme. In a way the buyer is completely stuffed because they factor in the costs of the ground rent before signing on the dotted line. And it's even more scandalous that the 'new' companies are hiking up costs when so little maintenance is carried out. The developers must be on a back-hander with the new freehold companies and it must be very lucrative, or they wouldn't deliberately choose to develop leasehold over freehold. So greedy! Should there be enough legal action against developers, I can see big problems arising in the property sector - all their own doing really. It's on a parallel with motorists being encouraged to buy diesel cars...
villafan1
03 Feb 2017
Re: Leasehold Scandal Yes, I think it's underhand too. I must admit, the conveyancing thing baffles me. One would think the solicitor would be able to decipher it. But I (on Vic Derbyshire) they did allude to the fact that wording was so deliberately ambiguous with regard to the lease/ground rent that it was almost impossible to clarify. I never realised so many houses were leasehold till I watched the programme. In a way the buyer is completely stuffed because they factor in the costs of the ground rent before signing on the dotted line. And it's even more scandalous that the 'new' companies are hiking up costs when so little maintenance is carried out. The developers must be on a back-hander with the new freehold companies and it must be very lucrative, or they wouldn't deliberately choose to develop leasehold over freehold. So greedy! Should there be enough legal action against developers, I can see big problems arising in the property sector - all their own doing really. It's on a parallel with motorists being encouraged to buy diesel cars...
shovelier
03 Feb 2017
Re: Leasehold Scandal A large portion of blame must lie with the buyer's conveyancing solicitor for not making the buyer fully aware of the situation and all its implications.When I've bought 'buy to let ' properties ( all flats in blocks) I've always been offered the freehold a few months into he ownership as this, I believe, is a legal requirement often process. Usually the leaseholders ont bothe andthefreehold goes to a property management company such as OM. Traditionally flats in blocks have always been leasehold due to the difficulty of managing the common parts in separate ownership and detached properties have been freehold as it's much more straightforward.On the Victoria Derbyshire show the woman who featured as a first time buyer should have been more aware of what she was getting into. If you're struggling that much o raise the money then be a bit more careful about what you're buying. The carrot for someone in that position is of course that the purchase price is slightly lower as leasehold than it would be freehold making it more affordable. The guy with the frizzy hair who was interviewed seemed a bit more clued up.IMHO it is rather underhand to be jacking up the ground rent to the extent that the sharks in the businesses are doing.
villafan1
02 Feb 2017
Re: Leasehold Scandal I agree on the market sentiment, BB. Been reading more recent articles on this. It seems thousands of buyers are affected. While it may be slow to change legislation, from what I've read buyers may be able to take legal action on the basis they weren't made fully aware of the leasehold/freehold buying processes. I accept that it's not illegal to sell on the freehold to other companies, but if those companies then hike up the prices (which of course they will and do), then that's hardly fair. I hate the idea of folk being shafted - which is why I'm not rich! Haha!
Boring Bernie
02 Feb 2017
Re: Leasehold Scandal Re "or the fact that the share price seems unaffected"Well, it might sound cynical, but, first of all, the news presumably means that Bellway are making a few quid when they sell the freehold on, and secondly, it won't be massive amounts of money and, barring legislation or some code of practice, it's not likely to change very quickly anyway.From a general public perspective, it's bad publicity, but from the city's perspective, it's likely just a bit "meh"
villafan1
02 Feb 2017
Re: Leasehold Scandal ... Forgot to add, I'm not sure what shocks me more: this morning's tv report, or the fact that the share price seems unaffected!
villafan1
02 Feb 2017
Re: Leasehold Scandal Yes, but in general new houses are usually freehold, especially estate-type houses. It's come to light that some major developers are keen to avoid freehold. The scandal element is not only in the ambiguous conveyancing wording, but in misleading buyers that they could buy out the lease at an 'affordable' cost: the developer then selling on the lease to another company who then offers the lease to the home-owner for an extortionate price, and/or the annual ground rent rising also to extortionate amounts. It stinks really! Particularly in this climate where buyers may struggle enough to secure a mortgage and indeed make the payments. Plenty of home owners in this position now realising their homes are deemed unsaleable.
coldingham
02 Feb 2017
Re: Leasehold Scandal Nothing new. Bellway (originally JT Bell) sold leasehold houses along with many other builders as far back as thhe 1960s. The freehold was always available to buy
villafan1
02 Feb 2017
Leasehold Scandal Just watching Victoria Derbyshire BBC2 highlighting the growing trend of property developers selling leasehold houses. Bellway is identified as one of the developers, and not in a good light![link]
coldingham
22 Dec 2016
Nice bounce today Don't know why, but good to see
coldingham
14 Dec 2016
Re: Trading Update At this price I think hold is about right. But certainly my purchase in the Brexit dip is showing a gain of over 30% added to which the dividends continue to make the investment well worth whileThe other factor of course is to ask where you could invest the money if you soldOne of the best managed housebuilders. I would buy again on a dip
Boring Bernie
13 Dec 2016
Trading Update Today's update wasn't massively surprising, but, back in October I was wondering if we could hit 20 to 25% eps growth this FY, but, given we're now forecasting a volume growth of ~5% that doesn't look likely to give growth of eps of 20%+.If selling prices are firm or increase and margins improve, maybe we'd be looking at ~10% growth in eps ?I think last time I typed I was looking at £28 as a short-term target, but that's looking a bit optimistic now. I'm still just about happy to hold at ~£24 but I'm not as bullish as I've previously b
II Editor
09 Dec 2016
NEW ARTICLE: The week ahead: US interest rates, Micro Focus, Bellway, Carpetright "As the City starts to wind down for the festive season, company reports will be noticeably thin on the ground. Keep your eyes peeled for news from Micro Focus and the US Fed.Monday 12 DecemberAGM/EGMConchaTuesday 13 DecemberThere should be no ..."[link]
