Member Info for 67Sam

MV
not a fast track to riches
Agreed. And fraught with risks of unpaid rent, legal action, maintenance, price collapses and all the rest. I am not saying it's safe but in the long term it's still another income stream. And a kind of effort towards increasing supply but Im betting they will be very picky on their tenant group. If not, I know of 7,000 Afghan people waiting in Hotels for property rents in the private market right now. That would go a long way towards their 10k properties by 2025 target. Barratts appear to be the new build partner and well, we know they are big and slightly less shoddy than rivals. Citra Living are a bit of an unknown quantity and thats where I think the biggest risks lie. Fletton Quays is now showing as all sold, so let's see how their 45 flat portfolio grows from here. L&G have just taken on a £350M investment to build 184 homes here in Bristol and I cant see whats not to like about it. They forecast 51% of those will be affordable housing.

falk
"67, I think you could get better if your equity is more than 40%. "
Yes quite possibly. I couldn't find anything under 1.00% tho. This was 1.29 %, no valuation or product fee. 3/4 of my lloyds holding is in an ISA. I might sell in 5 years to reduce capital owing if no big disasters for them or me along the way. Thanks for your reply.
interstingly lloyds "searched fifty deals" and offered me 1.94%

MV
not even good at their day job some times.

no, me neither some days.
Something going wrong with their diversification plans will be far more trouble for this board than my thoughts going wrong (btw how would you tell?). Diversification seems to be the key plan for LLOY in much of the on line analysis available; Im not the only person saying that.
Ambition always carries a risk of failure. You can see my scepticism in previous posts they may not have fully understood the rental market before declaring plans to be the biggest landlord.
But what would you have them do instead?

Sready
"he needs a bit more spice of Johnson"
please no

.....plus better IT.
i like the ambition though, be the biggest landlord, biggest mortgage lender, biggest wealth management. Lead the Repair uk etc
Good rhetoric to have coming out of a pandemic and I expect future rate rises to cause a few losses, but many more benefits for lloyds profits

Me
"beef up their wealth management business which would not be a bad thing".
agreed, i didnt think embark and schroders tie up wont be enough if they seriously expect to challenge other retail platforms.

stay tuned, its Friday

LTI
Yes thats a fact but it was also sixty five years ago. UK Public Sector Borrowing continues to march upwards. Maybe you're right, governments can endure debt forever, as they don't grow old like people do. But UK GDP looks like it's permanently knocked back by COVID and may reduce further in the short term? And the cheap costs of servicing that debt now might well get higher in the future.

Cardinal
"but doubt there will be a wealth tax"
It may not come next year or until the next election but I have long suspected the pandemic borrowing costs can only be met by a wealth tax, maybe a pensions raid. Where else is there anything like enough to take from, that hasn't already been taken? We owe at least 85% of GDP now and there is no possible way that will stop increasing in the next few years without a seriously redistributive policy of moving wealth away from richer people to reduce the states burden. My guess is assuming the next Government is Tory, they will sell it as a "responsibility to future generations" (while simultaneously spinning lies about reducing UK CO2 output).
I just cant see how else it is possible to sustain the UK debt or to repay it. We hardly achieved anything under austerity - other than a few tax cuts.
I might be way out but what else could fix the mess other than a wealth tax?

"I've always thought you were thick"

your such a charmer xwave, ill remember you for that.

Skier
The Lloyds board are right to have a cautious outlook. Poorer times are ahead.

Completely agree

blb
"This is officially a JUNK SHARE and junk company as far as shareholders are concerned".
As I said before, Im in a much better position than the start of the year. I didn't sell at 50p plus this AM and intend to for years. And tbh I wouldn't be persuaded by a strong announcement from someone like yourself with a history of four posts.
In my earlier post I described my holding at £400 per point - it isn't a SB its a 40k share holding that I built up over three years, hence me averaging down all through this year. Apologies if I used the wrong language, I wouldn't ever try and make money by buying and selling short term.

SReady
"Interest rate will keep going up and up and up IMHO".
I think I agree with you there. I had a remortgage offer today at 1.2% over 5 years and figure its time to switch now. I hope your proved right about LLOY 75p. But I still intend to stay in at £400 per point for years, not months.
Best of luck.

so it is a sale?

thinks *best check previous replies first*

falkland
isn't it an uncrossed trade .....ie. it didnt actually happen?

MVarawa
https://migrationobservatory.ox.ac.uk/resources/briefings/the-fiscal-impact-of-immigration-in-the-uk/

Yes and Tescos too. As well as loads of office to residential conversions waiting in line and re-thought retail spaces in high streets for older peoples housing.
It could well be LBG's big ticket. I just have a nagging feeling that they seem a wee bit complacent. The thing about "People don't pay their rent and trash the house" is that it is sometimes true, for whatever reasons. Eviction processes are time and resource consuming. Repair and relet standards have to be very high and properties built in proven locations to attract the least risk tenants. Barrat Homes might better than some of the other big house builders but neither they or LBG have the cleanest track record for integrity in customer service. That really matters as a landlord. People change tenancies far more frequently than they do banks. Im just a bit spooked by the scale of their ambition in this while underwhelmed by their ambition to provide top class banking services.

I read they had announced a partnership with Barrat Homes.
They must have done there due diligence and concluded this is a fabulous builder of quality homes with a reputation for excellence that is equal to LBG.
What could possibly go wrong?
Oh.

Faulkes
"Don’t be so sure".
I agree with you there. I understand the opportunity ie cheap borrowing and demand for rentals. I am much more uncertain about how LBG acquires sufficient skill and expertise as a landlord while expecting to ramp up to 50,000 units in ten years. Embark looks shrewd but this looks a little desperate and may have far greater risk attached to it. It's another reason for less share of profits to be returned to shareholders. Quite ballsy of them to look at a market they know nothing about and decide they will be the biggest UK player in ten years. I hope they dont screw up.