Not looking forward to reinvesting my next dividend like I was a few weeks ago.
But conservative 20% CAGR is acceptable.
Just prefer 30.
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Sailor , You will recall that chapter in "Irrational Exuberance" about ANCHORS.
So now we are officially plateauing with property sentiment ( therefore naturally heading to normalized turnover activity), that should mean OCA and its peers are worth instantly a lot more than their current value.
While that might be true ( IMO $1.50-$2.00) it will still be a journey to get there.
An "anchor" is the entrenched memory that we have now gotten used to OCA trading well below $1 and at half its asset backing. It will take time for retail investors to drop those accepted "valuations".
However I do wonder whether less emotional investors ( Instos , pension funds and private equity) will be more willing to ramp the price much quicker - as we saw today.
For those that have endured this pain for nearly 2 years and are still here...you have every right to be smug that this is your time. You earned it.
Agreed, but with the following edit 'So now we think we are plateauing with property sentiment' Sharon has huge vested interest, Westpac dude seems to be bit more bearish.
Nobody can predict it but we're not even at 2020 prices yet.
Job market still super hot, lets see some sticky inflation and some material job losses and some reluctance by the market to hover up big Grants new bonds and some pulling back of credit offshore.
Things can get WAY worse, but I agree with you that it's all about turnover and the things I highlight as possible above could lead to higher turnover too.
You been around long enough Mav, I am sure, to know that there isn't much pain around at the moment!
This is what we're talking about eh? The ANZ report.
https://t.co/2vYvJuIaiN
It has been the most pleasant economy reshape I`ve ever witnessed.
We have all stopped buying jet skis and upgrading our kitchens like good children the Reserve Bank want. In my small world no one has lost ( or even come close to ) losing there jobs or houses.
So our spending is reigned in and no one ( again , in my tiny world) has suffered too much. Text book recession...Job done.
Remember, if you want a 6% net yield, with 50% net margin (way higher than Google)
And you're getting $650 a week rent, the MAXIMUM you can pay is...
280k.
OCA up 7.69% today. NZX minus 0.55%. It's not all roses out there!