Stuff just reported that it cost 21% more to build a residential home today than it did a year ago. So much for the scaremongering that house prices will collapse and so will OCA asset base. From here it is only onward and upward.
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Stuff just reported that it cost 21% more to build a residential home today than it did a year ago. So much for the scaremongering that house prices will collapse and so will OCA asset base. From here it is only onward and upward.
Further to that, OCA recently reported that their locked in build pipeline is fixed price.
You'd be misinformed at the least to think any of the RV's are seriously exposed to cost of builds, or their suppliers who are their preferred supplier business partners enjoying continuous build work pipelines at good margins. These things are planned out years in advance with sufficient wiggle room on both sides to navigate materials price fluctuations.
But, you won't know about that reading financial reports. It pays to have the inside knowledge which is easily found, just by asking.
Your point appears to be that costs can be passed on to new ORA's. I think that underpins my point that it is largely irrelevant what it costs to build a property, when ultimately the RV and builder have flexibility on managing costs, but the RV has ultimate right of pricing the property for sale.
And the end product, the property, is sold (or de-facto leased really) at market, which takes into account all of those factors.
Re bolded point: yes go baa baa
And in any event, I suspect we are at peak building price inflation right now. ANZ's property focus, released today, the graphs on page 2, summarise it too well for any other words
https://www.anz.co.nz/content/dam/an...s-20220628.pdf
500 m loan based on green stuff.
I think the price being what it is I would love to buy in right now. Much better than the 1.60 it got to. When it was just over 1.00 the share was spruiked and some did buy. However as I keep watching I see the price going down and is firmly under a buck. There is no way it will be 1.80 anytime at least not for a long time.