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Morning Meconopsis,
For me, I think it’ll be a shrewd move by Bdev, longer term. I consider BWY & RDW to be the better run companies on paper out of the six I follow. Redrow’s figures certainly look better than Bdev’s lately and I can see the logic in the merger myself when things improve. Even at the lower end of 180m pre tax profits for RDW it equates to 54p per share. Having said that I did sell Redrow yesterday, sadly. PSN wise, I’m expecting around £1.10 of pre tax per share, so I guess we shall have to see what their future policy is, maybe 40-60p for the year?I was encouraged by their H2 figures over H1 (+34%) Then there’s the additional tax burden coming in. TW have a slightly different approach of….
Our Ordinary Dividend Policy is to return c. 7.5% of net assets to shareholders annually. As I stated on the LGen board over Christmas, one of the reasons I moved over from Bdev to Wimps, along with their estimated profits for the year (470m, which would give 13.3p per share). Personally, I think TW’s dividend might suffer the least? Looking for a re-entry point here when as and when I see fit
Beat me to it abc.
I cannot believe they wouldn’t have attempted to buy Crst in the first place. On level terms they could have taken them for about 700m?
Morning,
Certainly a different approach from when Jeff was in charge. The days of paying out nearly all profits to shareholders has passed (as stated) along with Jeff leaving and lining his pockets with share price related bonuses. (Remember him storming off a TV interview when quizzed about it?) Will we see 3X book value again, maybe not? Based on unit figures, the trading update, stating margins in H2 will be similar to H1, I’m expecting pre tax profits around 350m. Then there is the additional tax implications (6% I believe? ) kicking in. Hopefully no one offs to take that lower. Only my guess though.
Important week ahead kicking off with Bdev, RDW, & BWY on the 7th, 8th & 9th. Interested to see what Redrow have to say, if their lower chain cancellations has improved any since their November update
Here’s a link to previous if interested….
https://investors.natwestgroup.com/share-data/equity-ownership-statistics.aspx
Afternoon Dowsie
I initially bought my first house with my best mate as we both wanted to get on the property ladder in early 1988.It was the only way to get in. I was 20 and just come out of my time as an apprentice at RR. My initial payments were lower and over 25 years. I think there was no such thing as fixed rates back then, or not much interest, but like I said the £546 was in ‘90. I believe the BOE rate was 15.5% so why I was paying £546 I’m unsure. Maybe it was something to do with the good old indemnity?
That was my highest payment. Think it was 08/91. Had a good year or two of the rise in house prices at the back end of the eighties then, well, we know what happened then.
Those figures represent a figure of 18.5%!
In comparison, still owe just over 255k with interest only payments of £353 per month.
Meconopsis, thanks for the reply on Friday. I’m pleased it was a best guess. Having built an extension of my own.
That doesn't leave much headroom is they run low on disposable income.
Might I add, there’s also the mortgage charter that’s been launched by the government that pretty much all lenders have signed up to. You can extend the length of your mortgage, switch to interest only. On the average of 189.5k @4% that would still enable you to live in your own home for £630 a month if needs be. Things really are not comparable to the 1990’s. Attitudes have changed. Oh, I remember my 35k mortgage in the late eighties/ early nineties when I was twenty something myself.
The subject could quite easily read
Housing market still looks uncertain although H2 figures have improved over H1 figures for both TW & PSN.
Maybe that’s not negative enough for some though?
Afternoon Meconopsis
Hope all is well. May I ask where you’ve pulled this data from?……
but it’s far from the build cost, which will be probably closer to £80-100k per property.
https://www.msn.com/en-gb/money/other/entire-housing-estate-worth-40million-torn-down-just-after-being-built/ar-AA1n8DUX?cvid=0bb600376de44cb3b2f4be43580ed2e3&ocid=winp2fptaskbarhover&ei=9
Thanks Strictly
I’ll shall visit the blog later. I do not hold Crest currently. Have done twice but always seems to be short lived. I’m sticking to RDW, BWY, Wimps & here for the foreseeable. I moved out from here into Redrow back at the start of October which represents a couple of % gain as I liked the value. Re-invested here on the update for the reason I highlighted earlier
Thanks for the heads up all the same
Armani,
May I ask, which other HB’s do you hold?
Next week we have Crst’s figures. Bit worried about that update tbh. Then three days running for Bdev, RDW & BWY beginning on 07/02. I’m looking for what RDW have to say on the 8th after stating in their last update they’d taken a hit and projected lower end of the 180-200m pre tax due to lower chain cancellations. If PSN’s update is relative then things should have improved there?
Best of luck whichever you hold
Morning,
I know we’ve had a few negatives on the latest trading statement but for me it was very positive.I can’t believe this hasn’t been mentioned but for me, the main encouragement was the unit figures. H1 figures came in at 4249 and the full year at 9922. That gave us 5673 sales in H2 which represents a near 34% increase in H2 over H1. With a strong showing in Q4.
Can that momentum continue into 2024 or even improve as, hopefully, sentiment improves and rates continue to fall as we move through the year? Here’s how 2024 kicked off if interested (the first 30 minutes is sufficient if you indeed are)
Glad this is back…..
https://youtu.be/XE2zli8D2vk?si=2wiCFsr-H_9Ow1zd