Ha ha - glad you finally learnt :t_up: .....and seen the light of day
Printable View
I thought I saw many recent advertisements of new units or house type developments within villages saying buyers get to keep part capital gains too ...also they are resalable property thru them of course ...so thought maybe overall there is some criteria of sharing capital gains ...after all occupants buy their accomodation not rent it
So one can safely assume it will follow long term property appreciation rate of 7% plus some business value appreciation too . So investing in aged care is almost investing in property plus more ...as residents dont get any capital gains as per BP so shareholders get all that !!
Interesting .... haven't seen these ads (maybe you can give us a link?), but anyway - if they propose this now, it is new. None of the retirement villages in NZ used to do that.
And just one other clarification - the residents (nobody calls them occupants ...) do neither buy nor rent their accommodation. What they actually do buy is the right to live in this accommodation for the reminder of their natural life. Different thing.
Back to the income, though - beagles comment above applies, i.e. no matter whether the providers share at some stage part of the capital gains with the residents or not, they will do the accounting for you and tell in their books which part is theirs (and with that the shareholders :);
Thanks BP for your help ...IMO then larger the land and closer its to big city more valuable is that village thus company so the SP ...also they should be as safe a buying residential house for investment ...instead of rent ...u get dividend ...rest all same on business model ...plus EV of aggressive management