Legal & General Share Discussion Threads

[mcunliffe1] 07/9/2023 23:24

Denziiil, I moved up to a larger house about 32 years back just before the mortgage rate peaked at 15%.
The current max of about 6% is therefore manageable.
When rates dropped I continued to pay the higher amount, having become accustomed to it and repaid my mortgage years early as a consequence.
This in turn allowed me to take cruises.

[123trev] 07/9/2023 22:42

I think it’s very healthy to shoot the breeze on other matters not directly L&G related especially while we seem to be in the dead zone of course it’s all in some way interlinked so relevant and being able to post what you like within reason much less restrictive. My conversation with Steve gave another perspective on how a few decades change you equally I’m sure Steve understands things that would be slightly lost on me but make me think perhaps more than I would have. Sometimes it might seem I’m abrasive but it’s not personal it’s an alcohol issue lol. Ps I can’t remember ever butting heads with you Ron pmsl.

[rongetsrich] 07/9/2023 20:43

My salary sacrifice goes in on the 20th, it's a long time to wait when I think this will start recovering soon! Lol. Before we know it it'll be Xmas!!

[coxsmn] 07/9/2023 20:02

Barclays Lifts Legal & General PT, Maintains Overweight Rating

[stevelauren23] 07/9/2023 19:21

Well put Ron, I like other views, there is no benefit if we all agree. As long as opinions are valid and relevant then I'm always happy to listen. So far here I've found people to be fairly knowledgeable, even if I don't necessarily agree with their views.

Hopefully Trev is enjoying the pub this afternoon, I've got a few years before I can just go to the pub mid afternoon 😂.

I wasn't planning on buying more unless the price dropped to 200p, but this morning I bought a few more at around 212.4p. I'll still get more at 200p if it drops that low, but I'm hopeful for a recovery shortly.

[rongetsrich] 07/9/2023 19:09

Different views are what makes the team! I butt heads with many people; I challenge and assess. We have a good team here, and an invaluable ideas and approach club. Trev and Jubba have butted heads with me, but at the end of the day I read every single word... for and against my personal narrative.The shame, after all this, is the illogical ongoing share price volatility.Later this month I will buy more; I have faith in the present board, and the figures!

[denziiil] 07/9/2023 18:14

Interest rate rises have defintely impoverished the 20-30 yr olds and passed the money on to anyone lucky enough to have retired and have paid off their mortgage.Always feels uncomfortable for me that it seems a very unbalanced way to bring inflation down.I guess it falls down to the old adage of time in the market, and Marks and Spencers is definitely loving this right now.

[mcunliffe1] 07/9/2023 14:17

A brief thought on the ability to fill large cruise ships.
Having been on many I note the average age is upwards of 60.
As a pensioner myself I now have more available money to spend given pension and savings pots coupled with reduced (active) lifespan.

[stevelauren23] 07/9/2023 12:12

I agree that there are always price corrections where the market drops, but if the rates stay where they currently are now then it wouldn't be a correction it would be a bloodbath. I've not seen anything from others within the financial arena regarding it, what I've said is purely my own view, not what I've seen or heard other people say. Ultimately though, no-one really knows. All anyone has is an opinion, and in reality mine is no more likely to be right or wrong than yours and vice versa. It's all educated guess work.

I own a few properties myself, if rates stay high then it will cost me more, but then I'll also be in a position to buy more houses after they crash in price, as the majority of my income doesn't come from the properties I own. If rates come down I can borrow cheap money again, either way I should be well positioned to benefit from it.

[dope007] 07/9/2023 12:08

Sadly for those holding it, this debt needs purging from the system. And thanks to ALL the central banks and politicians, it is going to be painful

[coxsmn] 07/9/2023 12:05

LGIM expands in Asia with Singapore office opening and key hiresLegal & General Investment Management (LGIM), one of the world's largest asset managers, today announced the opening of its Singapore office. The expansion of LGIM's footprint across Asia underscores its ambitious growth strategy for the region, as the firm further expands its presence internationally. In Asia, LGIM has been growing for more than ten years, having opened offices in Hong Kong in 2012 and Tokyo in 2017.6 Sep 2023

[123trev] 07/9/2023 12:04

Steve your point is clear and been addressed already by many in the financial arena but the situation is very different now to then as regards people who now actually own their homes without a mortgage and you can explore that in detail which will lead you to new assumptions! The idea that prices just keep rising without a correction is absurd and the arguments of a limited property supply that helps fuel it misleading it’s the ability to afford the debt that’s paramount hence the cycle creates the mechanisms to prevent that leading to the correction and then restarting the next.

[stevelauren23] 07/9/2023 11:41

As very rough figures to back up my point, the average cost vs wages in the 80s was around 4x average annual wage, now it is around 10x the annual wage. So 2.5x more expensive now in relation to wages, but this has been made affordable by low interest rates.

We'll use a price of £100k for the 80s to make it easy, and a 15% interest rate. That makes the monthly mortgage payment £1281

So the house price today we'll use £250k (2.5x the 80s price because of the difference of affordability in wages.)

£250k at 6% interest rate would make a monthly mortgage payment of £1611. More expensive than the crippling rates of the 80s, it would lead to even more repossessions than the 80s, and if it was long term then it would destroy the market as we know it.

That is why I don't believe the rates of today are here to stay.

[123trev] 07/9/2023 11:30

Once upon a time when people first started out they bought a cheap terrace did it up over the years and had a standard dated car now it’s a four bedroom detached in the suburbs with a brand new German car on the drive as a starter for ten lol.

[stevelauren23] 07/9/2023 11:27

Trev, I'm 37, so too young to remember the rates of old, which means everything i know is based on statistics I've read. The problem is that prices now are based on the rates of the last 15 years. So to keep them at the rates we have now would send the market into a crash we've probably never seen before. The rates now compared to the highs of the 80s are more expensive in relation to an average wage/price comparison. So in the same way that rates of 15% weren't there forever in the 80s, rates of 5%-7% won't be around forever now.

[123trev] 07/9/2023 11:23

Agreed these low rates have fuelled a monster in the housing market and all areas of personal debt from credit cards,loans and car finance and as such created an illusion in expectation exploited to the limits.

[dope007] 07/9/2023 11:14

Low rates have crippled the housing market by smashing up prices due to people taking on far too much debt they could never normally afford

[123trev] 07/9/2023 11:08

Don’t take this the wrong way Steve but how old are you? I ask because these are normal rates what we have had since 2008 is abnormal in every way and couldn’t carry on indeed they should have gradually been hiked long ago.

[stevelauren23] 07/9/2023 10:59

I'll have to disagree regarding interest rates, if we have longer term interest rates at 5%-7% it will cripple the housing market. The government have always done what it can to support house prices. So I can't see them staying high long term.

[cwa1] 07/9/2023 10:57

Nice to see that Barclays have fairly whacked that price target up by a whole 3p :-)

I suppose we should be thankful it is an upwards revision and they are "overweight" rather than "sell" on the stock...