Taylor Wimpey Share Discussion Threads

[newkid] 18/11/2010 12:52

Not sure I would agree with views that buying a property is not agood investment. Don't know of any other investment where over the long term you can make one hell of a lot of money. My first house cost me £2700. I sold it for £6400. My next house cost me £21k in 1982. I sold it in 1987 for £87k. I then bought a house for £95k and sold it in 2004 for £300k.

If you rent then you lose all round. If you can afford to pay say £700 per month plus bills then you could afford to pay a mortgage. The only thing stopping you would be the level of deposit needed. IMO I don't think banks should have stopped 100% mortgages as I believe taking the above into consideration property will always win in the long term.

[scars] 18/11/2010 12:26

Nothing wrong with a bit of greed, just look at the bankers - thriving on it!

[sister mary] 18/11/2010 12:02

smurfy2001 - 18 Nov'10 - 10:35 - 5214 of 5220

... l will increase rents @ approx %15

---

Is there no pity in that gread now?

[hiq] 18/11/2010 11:59

Smurf - I'm familiar with that graph which over substantial time (so we can ignore the peaks & troughs) shows property prices going up by a bit more than UK inflation, which you might think would be good proof of your argument.

But what people tend to ignore is that properties have got a lot better over the last 50 years. They've had rooms added on, attics converted, cellars dug in London lol, bathrooms and en suites added/ updated, conservatories added etc etc.

I think property is really only a clear winner if you are lucky or clever enough to buy when prices are at a cyclical lowish point.

[scars] 18/11/2010 11:53

hiq, but the people (lemmings) who bought the end of the property boom are by far in the minority.

[smurfy2001] 18/11/2010 11:52

hiq - agree but property in the long term is a winner. You only have to look at history to see it's true.

Inflation makes it invitable.

[scars] 18/11/2010 11:50

Total mortgage lending in October was £12.4bn, the same as in September but the lowest October figure since 2000.

Brian Murphy, at mortgage brokers the Mortgage Advice Bureau, said he was "mildly encouraged" there had been no fresh drop in lending between September and October.

"As a result, competition for rental accommodation is fiercer than ever, and rents continue to rise."

[hiq] 18/11/2010 11:48

Scars - not necessarily so.

Somebody who bought a property to rent out in any of the last 4 years is probably looking at a substantial capital loss (if they sold) plus in many cases the rent is not enough to cover the real cost of the property ie borrowing 100% of its value + maintenance & insurance.

[scars] 18/11/2010 11:17

Why rent unless you really are not in a position to buy, you are just paying someone elses mortgage and pension. Many thanks to my lodgers!

[smurfy2001] 18/11/2010 10:35

Always believed renting is a mugs game and always will.. I rent out two properties myself and earn an inflation busting yield despite the property prices nearly trebling over the 20 years.

I can retire today if l want but the pay is great (work is boring as hell) so l won't.

Next year is the 3 year rental review and l will increase rents @ approx %15, which more than covers inflation.

[hiq] 18/11/2010 10:26

Yeah but it's very different to last time round (c.1994). Back then, property was cheap and loans were expensive and it still made sense to buy not rent.

This time it's the reverse, ie property is expensive and loans are cheap.

It only makes sense to buy if you negotiate a fair price for the property and plan to stay there quite a few years and fix an affordable mortgage for 5 years or so.

[imastu pidgitaswell] 18/11/2010 10:15

There's always a balancing point on renting vs buying:



Not news, but it would make me wonder why I'm renting (if I was) and whether I should change it. Also some nice comments from the Torygraph readers, almost to a man ridiculing the article and giving 'real world' example of why it is better to rent than buy. I think in my real world, renting £500k properties for £1,250 per month doesn't happen too often...

[hiq] 18/11/2010 08:36

Dinnae worry - just be patient

[newkid] 18/11/2010 08:33

Morning all. We are being held back by the big boys. Why I don't know but with yesterdays RNS we should have put on 5% at least. Going forward I think we may well see the US relisted and long term sold off once the market has improved. That said the share price should be in the 30's now and not sitting at these levels.

[fewdollarsmore] 17/11/2010 19:35

Forecast profits as per Digitalook website are 30m for 2010 and 78m for 2011, the 2011 figure is somewhat challenging unless they have some significant cost cutting measures already in place....

31-Dec-10 £2,591.08 £29.92M

31-Dec-11 £2,735.78 £78.51M

[hiq] 17/11/2010 17:25

The interest on the debt

The interest on the bonds incl new £350m bonds

The housing mkt remaining weak

The pension deficit

[shaws37] 17/11/2010 17:07

Still carries a lot of debt which is worrying the market. If that's not worrying the market - what is ?

[hiq] 17/11/2010 16:58

Independent

Taylor Wimpey said yesterday that its profits for 2010 were likely to come in towards the top end of analysts' expectations – forecasts have ranged from a loss of £10m to a profit of £55m, with consensus at £23m.

[smurfy2001] 17/11/2010 16:51

right thanks

[hiq] 17/11/2010 16:47

We are now fully sold for 2010 and we expect Group profit before
tax to be at the upper end of our expectations.

This has been interpreted by analysts as close to £55m broker forecast Citi

[smurfy2001] 17/11/2010 16:39

hiq, where did you get the 50m figure from?

[hiq] 17/11/2010 14:45

The last statement was yesterday not 6 months ago

[lyntwyn] 17/11/2010 12:19

Taylor Wimpey's interim management statement is a "robust update" says Shore Capital. Says conditions in the UK and U.S. are satisfactory and UK trading conditions are marginally above expectations during the summer but below expectations in the autumn. Says the company has reached full agreement with its banks on the terms of a revised GBP950M credit facility, subject to raising GBP350M of debt capital market funding. Also notes the departure of finance director Chris Rickard. Keeps at hold, as the company carries significant debt which heightens risk factors.