Fitch Ratings has affirmed its ratings on Toll Brothers. That’s good news for the company and homeowners alike. If you own a home in Escena, you may feel pain, as Toll Brothers is alleged to be responsible for a water heater leak. They’ve been accused of being “build to rent” developers, meaning they could take control of your HOA board.
Fitch Ratings affirmed its ratings on Toll Brothers
Fitch Ratings affirmed its BBB- rating on Toll Brothers, Inc. This decision is based on the homebuilder’s operating solid model, stable debt protection strategies, and favorable market position as a luxury home builder.
The credit metrics of Toll should improve as the company reduces leverage. However, despite this, Toll’s credit metrics are constrained in the intermediate term.
The cyclical nature of the housing industry could negatively impact the company’s ratings. Supply chain disruptions and affordability concerns will keep the demand for homes weak. As a result, Fitch expects single-family housing starts to increase only slightly in the next two years. In addition, cost inflation is expected to continue.
However, Fitch maintains a Positive Outlook on the housing market. It assumes a slow decline in the rate of housing activity, with low-single-digit decreases in 2023 and 2024.
A crack in the homeowner’s garage
If you’re lucky enough to own a detached garage, you might want to look into a waterproofing service. Cracks are common in this type of construction. You’ll want to ensure the gaps don’t become a recurring problem.
The best way to tell if you’re dealing with a cracked garage is to inspect the surrounding area. If you notice significant gaps between the walls and doors, this signifies a sagging foundation.
Another good indicator is when the ceiling shows signs of wear and tear. This can be a major headache if the garage is attached to the house.
Keeping the moisture out of the basement is no small feat. Unfortunately, waterproofing a basement isn’t cheap and will require a fair amount of work.
Water heater damaged
You may have a water heater in your basement if you’re a homeowner. In many cases, your water heater’s function is to keep your water hot and ready to drink, so it’s essential to maintain it properly. Failure to do so could mean the loss of precious drinking water or, worse yet, a waterlogged basement. Fortunately, you can do a few things to reduce your chances of a catastrophe.
One of the best ways to protect your investment is to regularly check your water heater for signs of damage and replace anything showing its age. The bottom line is that a damaged water heater can wreak havoc on your home. So you’ll want to have a plumber inspect your unit at least once a year to ensure there’s no water in your pipes or the water heater itself.
Contracting out for Toll Brothers
If you’ve recently been contracting out for Toll Brothers, you may have noticed a significant decline in demand for new homes. This has been a result of the continued rise in mortgage rates. As a result, Americans have been using their credit more frequently.
Despite this, Toll Brothers reported strong quarters in New Jersey, Atlanta, and Phoenix. However, a large number of deals fell off the table. In addition, the company has reported a significant number of liens on its properties. A total of 91 liens were filed against the company, with the vast majority for work that was below $50k.
As a result of these events, Toll Brothers has been taking steps to avoid any liquidity issues during the quarter. These actions include stopping any new land spending in the urban apartment sector. They also repaid borrowings on a revolving line of credit.
