OCA - Oceania Group - retirement villages

[mistaTea]

https://www.rnz.co.nz/programmes/the...ement-extremes

Geez I wanna retire today and go live in The Helier.

Sounds…expensive.

[Bjauck]

Haha.
I going to be a bit sexist now, but sounds like an old woman's club with nothing better to do.
But please by all means follow their advice if you want. I don't care one way or tother.

I wouldn’t be surprised if I was in a minority on this board, but I think that is not just a bit sexist. It is very sexist.

[Daytr]

My point is your opportunity cost you talk of is not 4 to 5% due to the earning the dmf, the dmf value over the average occupancy time frame you mentioned earlier is going to be close to your opportunity cost I'm guessing? And the refurb costs is irrelevant is it not, as a rental also requires maintenance to be paid for by the land lord.

So your rental scenario would be the return you mention only, less maintenance costs vs the current ora up front, with the dmf earned. And one thing you haven't mentioned is the difference of getting the cash up front vs paid weekly or monthly over the course of the rental agreement (in your rental scenario).

I have stated on several occasions it does not include the DMF & the DMF is the kicker.
However if you do the calculation over the average 7 years the lost rent outweighs what the net DMF is.

Prior to a unit being resold, it's gets a renovation, I.e perhaps new kitchen,.New curtains, carpets etc. This comes out of the DMF.

I have mentioned the benefit of the money up front, but what's knew about that? All 'loans' you get the money up front & use of cash. It doesn't mean there aren't interest costs on the loan. And of course they make money on that money, hell if a business doesn't make money on borrowings that is a company heading towards bankruptcy.

The problem with what many are saying is that OCA gets free loans & the DMF, it's double dipping.

I have also said on many occasions, it's a good deal for OCA, it's just not free.

[SailorRob]

Float is just leverage, so earning a loss or insufficient return relative to what you paid for it can cause some hefty losses.

On fire Value as usual.

Chasing float only makes sense if you can get it for an appropriate price, as with everything else.

What is the work you have to get back to at 10:30pm?

[SailorRob]

Worth a read and to think about carefully in OCA model context.

Think about each of the risks highlighted and how they apply to OCA.

https://www.oaktreecapital.com/insig...impact-of-debt

[bull....]

This is all most people need to know , never mind the gospel chorus from the bagholders on the goldmine of the float.

From fletcher building. no wonder most RV satocks are heading towards lows again

There has also been a notable slowdown in house sales in the New Zealand market and an end to the house price momentum seen through the first half of FY24.

https://www.nzx.com/announcements/430952

[Daytr]

This is all most people need to know , never mind the gospel chorus from the bagholders on the goldmine of the float.

From fletcher building. no wonder most RV satocks are heading towards lows again

There has also been a notable slowdown in house sales in the New Zealand market and an end to the house price momentum seen through the first half of FY24.

https://www.nzx.com/announcements/430952

Got to wonder what Fletchers are doing wrong in Australia though, the property market over there has been booming compared to here.

[Bjauck]

I wouldn’t be surprised if I was in a minority on this board, but I think that is not just a bit sexist. It is very sexist.

I looked at the Oceania diversity report. A majority of the directors are men, but the overwhelming majority of employees are women. There was no breakdown of clients, but the demographics of the elderly, plus observation when visiting villages would indicate a large majority of clients are women too.

[mistaTea]

I looked at the Oceania diversity report. A majority of the directors are men, but the overwhelming majority of employees are women. There was no breakdown of clients, but the demographics of the elderly, plus observation when visiting villages would indicate a large majority of clients are women too.

Not a suprise really, as they will have a lot of nursing staff which will be overwhelmingly female.

Not a surprise either if the majority of occupants are female too as those with a muff tend to live longer than than those with a sausage.

[ValueNZ]

On fire Value as usual.

Chasing float only makes sense if you can get it for an appropriate price, as with everything else.

What is the work you have to get back to at 10:30pm?

I'm working at a supermarket stacking shelves from the afternoon until midnight. Nothing fancy but it works in well with university, still in the privileged situation to be able to invest nearly all of my wage.