RE: Going South15 Nov 2024 21:39
The way I see it is this, Vistry decided to sell houses through contracts from housing associations and managements with huge funds who can buy the whole lot at a fixed price, rather than build houses and then try to sell it on the open market.
Down side on the contracts is that its fixed, if you don't get t your sums right your liable for the shortfall, but get it right
you will make millions. On the open market, you can increase the prices at the end to make up the shortfall, but this could be a long waiting game to find a buyer, which no builder can afford to do.
As far as I know Vistry has done well over these few years (covid, high interest rates). Vistry now has experience in moving forward to make changes to new contracts ( I hope they do). Mortgage interest rates are still high, cost of living is high, wages still low, building affordable houses by contracts is still the way forward.
On a different note, take a look at Ondo InsurTech PLC ( aim ), previously at 14p now at 27p, business seems to be just starting to grow, DYOR as always.