Merchants Share Discussion Threads

[ctrader3] 21/3/2021 08:58

Representative Example
£218,000 mortgage over 25 years initially at 2.84% fixed for 123 months reverting to 4.09% variable for term. 123 monthly payments of £1015.73 and 177 monthly payments of £1105.46. Total amount payable £320,976.21 includes loan amount, interest of £102,601, valuation fees of £275 and product fees of £0. The overall cost for comparison is 3.3% APRC representative.

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the total cost for a 25 year mortgage is shown, can't see
any downside only upside.
u have somewhere to live for 25 years, the value when u
have finished paying off your mortgage doesn't matter
as u still have somewhere to live for free and
u will be paying off the interest at inflation reduced
values.

[ctrader3] 21/3/2021 08:43

SMT doesn't belong in a dividend/yield portfolio but this is
a dividend hero portfolio.
It is clear that SMT has outperformed, well done
to any one who has owned, of course the future performance
may be different, it often has years of doing very little.
If we look at MRCH 10k invested would be worth 24k.
u could have most probably have beaten the TR figure if
u re-invested the dividends wisely.
24k x the current yield 5.47% = £1,312 a yield on buying
price of 13.3% and if u don't have grand children
leave your capital to your local cats and dogs home.
If the current price falls the yield rises and the
figures stay the same.
If MRCH change their dividend policy, which is unlikely,
there are plenty more fish in the sea.

[ctrader3] 21/3/2021 08:34

I'm going to take the dividends as an annuity
and pass the capital to my grandchildren.
where as u will have to take an annuity paying
peanuts if u haven't already done so.
at least u won't have to worry about your
capital as the pension company will own it
and not u.

[superiorshares] 21/3/2021 07:56

Ctrader3
There you go again with your selective examples .
Please do your example on a 40 year mortgage and not a 25
Catch up with event's.

I hear all this I'm never going to sell stuff. What are you going to do with it all ?. Bury it with you , in your pyramid .

[ctrader3] 20/3/2021 08:09

House mortgage rates and MRCH.

MRCH if u never intend to sell the price doesn't matter
as long as they continue to pay the dividends.

House prices if u never intend to sell the price
doesn't matter, always better than renting as it
turns a liability into an asset.
Also inflation on the monthly charge and the asset price
should work in your favour.

Representative Example
£218,000 mortgage over 25 years initially at 2.84% fixed for 123 months reverting to 4.09% variable for term. 123 monthly payments of £1015.73 and 177 monthly payments of £1105.46. Total amount payable £320,976.21 includes loan amount, interest of £102,601, valuation fees of £275 and product fees of £0. The overall cost for comparison is 3.3% APRC representative.

[tim 3] 19/3/2021 23:47

Fair points guys.

Only time will tell, a drop would certainly be nice for those unable to get on the ladder, seems to unfair on them at present.

[jeffian] 19/3/2021 22:25

Not just housing. Zero interest rates inflate all asset values, including the stock and bond markets. Governments are caught in a trap of their own making.

[che7win] 19/3/2021 20:58

Superior, I agree, it's easy to afford housing when interest rates are record lows, what if interest rates normalise to 4-5%, what would happen to house prices?Rather than the government agreeing to cover the banks risk of taking on borrowers with 5% deposits, why not let housing fall to an affordable price?

[superiorshares] 19/3/2021 19:34

Tim 3
I am an old duffer !.
The past rises are from non repeatable events .
Ie the liberalisation of the mortgage market.
The youngsters are all buying them on 40 /50 year mortgages . As long as they can put up 5 per cent deposit ( bank of mum and daddy ). The government gives them 20 per cent of the remaining purchase price ( help to buy ).
I think they will be over the next 30 years one of the worst long term investments ?
The City I live in the new builds are through the roof !!!!
The second hand ones a bit static I think . Will have a trawl over the weekend .
What I can't get my head round on the new builds . I believe the 20 per cent help to buy is only on the new builds . The people who purchase them get the loan because they can't afford them .
When they want too move , who will they be able to sell them too ?

[tim 3] 19/3/2021 18:33

Property is probably one of the best long term investments you will ever makeimo.Over the last 50 years with the odd blip it has gone steadily up.Don't see that changing.There will always be demand and there seems very little prospect of interest rates going up at present .At the moment round here demand is through the roof with property's going well over asking price.Just need to be careful you buy in the right areas.People have been predicting a crash since I purchased in 2000 and it's gone up over 400%.I don't invest in it myself as it's to much hassle but if I was younger I would.

[superiorshares] 19/3/2021 17:52

Rahosi .
On house prices . They were not affordable a long time ago.
I bought my second flat in Greenhill Rd Harrow a few years after my first one . The second flat cost 112,000 and it happened to be above my head . I then owned the house .
What happened then with the London market . My two flats where 2 and half x joint , 10 per cent deposit over 25 . That was the max you were allowed.
Now the mortgages were not affordable thereafter. They just became up to ten times joint . Self Certification ( ie lie on the form ). 40 /50 year mortgages . Go to a broker ( lie a bit more ) etc etc
I agree with you The Government will not be able to afford interest rate rises , it will cause chaos everywhere , the debt levels throughout are insane ! But I don't think it's necessarily their choice ?
Which is why I say . Keep your eye on the ten year .

[ctrader3] 19/3/2021 11:38

The stars are align for UK equities

With recovery in prospect, could this be UK equities' moment?

J.P.Morgan Asset Management

1 March 2021

We believe a rare set of events have combined to make the UK equity market a highly attractive prospect right now - and Claverhouse Investment Trust could provide an attractive vehicle to capitalise on it.

The income outcome

Investors around the world have grown accustomed to dark times. The effects of the pandemic continue to crush income hopes. In the UK, dividend values fell by 44% in the course of 2020, hitting their lowest level since 2011.

The case for UK equities

Claverhouse managers firmly believe that having a UK focus will give investors a positive advantage in the market of early 2021. With Covid-19 vaccine programmes rolling out, recovery is tangible. The investment skies are clearing. Given the heavy fiscal support delivered by governments to bridge the pandemic, interest rates are likely to be suppressed for some time. But the US election and the long-awaited resolution of Brexit have bolstered political stability on either side of the Atlantic.

“At this pivotal point of the pandemic, UK stocks offer a tantalising prospect”, says Will Meadon, Claverhouse portfolio director. UK equity prices are currently trailing well below recent performance: a glance at the records shows them hovering near the lows of the 1980s. “They are not only historically cheap, but attractively valued compared to overseas markets – notably the US, which is dominated by sky-high tech valuations,” Meadon says.

[jeffian] 19/3/2021 11:10

#1355,

"At Murray Income Trust,...."

Eh? Or was it just about dividends generally?

[rahosi] 19/3/2021 10:08

House Prices are determined by the affordability of house buyers' monthly mortgage payments, which are a calculation largely based on interest rates.

It would be a brave government that substantially raised interest rates. Property prices would plummet. Negative equity and homelessness would seriously escalate.

Let alone the massively increased interest bill on Covid borrowings the Gov would have to pay, to be funded by raised taxes.

Not the greatest way of getting the electorate to vote for the 'interest rate rise' instigating party.

[ctrader3] 19/3/2021 09:50

The hallmarks of quality.

The UK equities market also benefits from an abundance of good-quality companies that are still paying attractive dividends. In nearly all cases where dividends were vulnerable to cuts, they have now been rebased. We can, therefore, have more confidence in the UK market’s income level, with previously over-distributing companies returning to sensible pay-out ratios.

A company’s dividend is a useful touchstone for its health. From our perspective, we place great store in the simple premise; to consistently grow your dividends over the long term, you need to grow your earnings. Good-quality companies are best placed to do just that. As income investors, it’s important to remember that dividends provide a significant part of an investment’s total return. In addition, the yield acts as a backstop for a company’s valuation.

A more optimistic outlook.

In the aftermath of the pandemic, and in a world of low interest rates, high debt and pressure on corporate profits, the quality of a company will remain as important as ever. At Murray Income Trust, we believe that quality companies are more likely to be able to pay dividends even when conditions are challenging.

From here, we expect to see the following waymarks.

Investors will pay a premium for companies capable of delivering attractive and growing dividends.
Those companies with strong balance sheets that can undertake merger and acquisition activity, or continue to invest in their businesses through the cycle should emerge in a stronger competitive position.
Structural long-term earnings potential in a world of modest medium-term growth will continue to be prized.
Therefore, companies with sustainable competitive advantages and pricing power should benefit disproportionately.


Final thoughts …
As we’ve highlighted, there are several positive drivers at play in the UK equities market. For income investors who may have disregarded it, we believe now could be a good time to reconsider investing in the UK.

At a time when quality counts, we maintain our disciplined and measured focus on financially strong, resilient companies that can thrive whatever the conditions. These businesses offer the potential to grow their earnings, and hence their dividends, over the long term.

[superiorshares] 18/3/2021 20:45

Mister MD
My first flat Greenhill rd Harrow
£54,500 :-)

House prices there's a thing . The most heavily Taxpayer subsidised thing in Britain I would have thought ?
The only way to prevent a house price collapse over the next decade , will be to extend mortgages once again .
What's the average now 40 years .. push that out to 50 /60 .
Problem is it already has created a two tier system being there is no subsidy to buy the second hand homes .
The importation of 500,000 people a year will ensure demand . The majority of that demand will be paid for by the welfare state .
So new housing will probably continue to rise ?
Those youngsters with a 50 year mortgage who want a divorce will find it an unpleasant situation .
Investors keep your eye on the 10 year

[mister md] 18/3/2021 18:04

Superior - you remind me of the kind of person who continually says 'houseprices have peaked, you need to rent' and then a few years later discovers that prices have gone up another 30% or so.....

[speedsgh] 18/3/2021 14:52

Latest Edison research note...

Meaningful improvement in relative performance -

[superiorshares] 17/3/2021 20:11

Tim 3
It will be back too £3 over the next couple of years . Who advised you to buy at £3 ?. That was almost the exact bottom They must be very clever !.
I did say I wasn't short this , problem with shorting Trusts . You are shorting all the company's in it . Some in Mrch I really like . Some I wouldn't touch with a barge pole !
Should this get back to that high of about £5.50 then my shorts are going on
Regards Investors