Jeepers
Member of DD Central
Posts: 818 
Likes: 721
|
Post by Jeepers on Feb 24, 2018 15:01:29 GMT
Is the Loan to GDV a totally meaningless and misleading figure that shouldn't be listed?
Why not replace is with maximum LTV in the key stats ?
|
|
Jeepers
Member of DD Central
Posts: 818
Likes: 721
|
Post by Jeepers on Feb 24, 2018 15:41:18 GMT
I' say loan to GDV or totally irrelevant. The only way it could possibly be relevant would be if later tranches ranked behind the first tranches.
To realise that GDV, more money at equal priority needs to be injected, without that we'll never see the GDV anyway.
All I care about it LTV today and the maximum LTV at any given time.
Also; we're yet to see how accurate GDV'S are. The surveyors are bad enough on actual assets !
|
|
|
|
Post by GSV3MIaC on Feb 24, 2018 18:05:13 GMT
The problem with that is, as is much discussed, if you buy a £1m property, and knock it down to build an alleged £10m of housing, at some point the 'current value' is rather less than you started with. If you build it in shoddy fashion, or contra the PP, the current value may even be decreasing (someone has an expensive mess to fix).
[aside .. IIRC Ly had a toxic waste dump where the LTV was a lot less than 70% in many peoples' opinion .. infact the LTV was probably negative (so mercifully the loan never happened).]
Certainly I've never seen a build where the current value tracked nicely upwards as the tranches were invested, even if the QS reports confirmed the right stuff had been rightly done. The GDV isn't even a real number at the end of the build .. only when someone has actually bought the end product(s). Welcome to development finance..
|
|
