Definitely mixed reactions today from the sector. OCA the star up 4 percent, while SUM down a bit
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Definitely mixed reactions today from the sector. OCA the star up 4 percent, while SUM down a bit
the arv result confirms slowdown underway , re-sales maintaining illusion of strong position but the smart cookie's know when you scale back development as all RV'S are doing sales and profits will be less going forward. re-sales not effected to the same degree.
Interesting article
Until now these deals have given the Big Six retirement villages the perfectly integrated business model.
Not only are they in the property development game, which has made them the darlings of the NZX and KiwiSaver, but they also effectively farm old people
Under the Retirement Villages Act it seems stealing from your grandparents has become a market mandated activity.
https://www.stuff.co.nz/opinion/3008...for-untangling
big risk this year ?
Review of Retirement Villages Act begins in 2023
https://www.hud.govt.nz/news/review-...20call%20home.
Perfect business model - makes sense only if NZ is run by rational, smart and far sighted governments.
The current lot is none of that so it is entirely possible that they will force changes to the model. Means retirees in RVs will have to find $$$ and/or take out reverse mortgages to pay ongoing living costs.
Plus a CGT should really be included as part of the revamp.
But will Labour bother? The elderly electorate are predominantly NZ First, ACT and National voters.
CGT in NZ? Who ever bought anything with the intention of profit?
There is the bright line test on property investments and that's about it. And interesting enough, the RVs are not affected by that test.
I personally have no problem with a CGT and it is way overdue in NZ along with a comprehensive tax system revamp.
Aye me neither. Something simple - a 15-20% cap gains tax on everything bar the family home. Or something slightly higher if selling in under 12 months.