I better use the HPI numbers
Nationally 2.0% up from August ....last three months +6.4% and last 12 months +30.4%
Whew ... pleased with that
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"+30.4%"
:eek2:
wall street 1920's , they will be plastered this new years.... dont drink and drive!!!
I've always used HPI, not sure why anyone bothers with median or mean when much more accurate metrics are available. I guess people just pick and choose whichever more aligns with their bias.
Very positive for OCA and the whole sector, especially OCA whom haven't increased their prices by as much as the others in the sector yet. Huge amounts of embedded value.
The average age of entry to OCA is about 85, (they are targeting the older demographic compared to other sector players).
Most residents shifting in are significantly downsizing from a larger home and accordingly the price they pay is significantly less than what they sold their home for.
Most are making needs based decisions irrespective of what's going on the in the market and they are selling their homes and buying an apartment or care suite on the same market.
Only a small fraction of the gains in real estate over the last year appears to have been factored into OCA unit pricing and there is significant headroom for price increases in their units absorbing previous gains in the market overall, (source recent Forsyth Barr report)
A drop in the Auckland market while we are under lockdown surely is already expected by most on here.
I am not expecting a change to level 3 restrictions in Auckland anytime soon.
Two policies, zero cases outside auckland, suppression in auckland.
as interest rates rise cyclical factors come into play.
high prices for land and building now the New Normal.
Amended, here for another year then.
They cant do another 20 percent can they?
Then thing could really get ugly.
Rough concept for you.
The major companies have a 'deferred maintenance fee' of 20-30%.
So you buy a right for $500k
You pay your fees for years
You die, your heirs get $500k minus the DMF (doesn't matter what the place is worth now).
You also only get that once the place is sold.
The company refurbishes the place and sells for lots of $ more.
They share that 'profit' with the shareholders.
Its about now the the gold stuff in the ground starts to look good.
If this stuff goes another 20% in 12 months nerves will start to twitch.
And some draconian tax law will be passed late at night.
Then you will hear a lot of loud barking!