I'm confident Bull is the exception to this observation of yours.
Having a lot of money in a bank account is certainly a sign of lacking financial education.
Printable View
market does not care if you can read or write
The lesson I got was a humbling one. At a young age I was of the impression only intelligent people were rich. I used to judge harshly about grammar and needed to have my eyes opened. Plenty of school drop outs I know made it better financially than loads of intelligent people I know. As for the free pass on breaking rules on being rich............ Nothing to do with what I was getting at.
Great commentary Maverick
Nov/Dec 2023 may be the nadir of commercial property and thus RV valuations and sentiment. We will find out during 2024.
I spoke to a high performing commercial property sales manager earlier this year who has sold properties for a large trust that I recently retired from as an independent trustee . I asked about the disconnect between interest rate driven property valuation methodology and reality. He said he was selling plenty of properties to astute long term investors who were looking through the under valuations produced by the sclerotic mandated valuation methodology and the true value. These investors are willing to buy on what seems a low yield because they have calculated - the cost of the bare land and the replacement cost of the building including the onerous legal, consenting, engineering etc fees. Where the market price is deeply discounted to the NTA they jump in. That is why I am holding more shares than the directors who have just topped up their holdings in OCA. For me RV stocks are essentially a property play.
Sorry Holding more shares than 2 of the directors but a reasonable percentage of what Liz Coutts holds
All good points and why wouldn’t that stagergy work long term.
I personally see commercial property as a net investment in the future health of the NZ economy. Where as RV property is an investment in the wealth and volume of our elderly.
From my personal observations , over decades, ALL folk change that were once astute business people (who really felt the value of a dollar and need to make more money) to reach about 75-80 year olds who become willing to exchange plenty of that wealth for carefree living and more especially ….living amongst companions. This surely is the only reason why the ORA contract works so well.
Generally, all consider care as needs based and units as a choice of lifestyle. I differ and see units as also needs based - for those who can afford it.
I look down my small but well heeled street and see 5 out of 6 neighbours all living alone. Spouses have died.
Some have family but most visters are few. These are the demographic who can, and will, move to a RV unit suitable of their pay grade.
Working at the high end offering quality to this demographic is where profit lurks.
I think your comment about property now in its nadir is prescient.