Are you trading this stock or investing in this stock?
If it's the first, there's better trading stocks out there. If its the second, why so impatient?
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I thought power companies were nice and safe too until Labour/Greens came along. Heavy reliance on one sector increases the risk of loss which doesn't correlate to the market.
Admit ably, I wish I was overexposes to retirement villages and not power companies but then that was a risk that wasn't foreseen. To be completely exposes to just one sector is crazy.
It isn't. I have numerous clients with rental properties and almost always there is far more work and many more problems in owning a rental property than people anticipate and that's before we go down the track of an analysis of all the risks involved in rental properties, tenant damage, P Labs, gaps in tenancy, investment in a single building in a single location as opposed to a wide geographical spread e.t.c.e.t.c.e.t.c. Then there's the maintenance / refurbishment, ever increasing insurance and rates bills, tenants that can't / won't pay their rent. Why would you bother ?
The Government is sucking the life out of the market at present, its really that simple.
Dear Roger.With all due respect your comments about rental properties smacks of someone with an agenda (alternative to res prop).In many ways your comments are fairly stereotypical from someone who is a financial advisor or a broker.
I will no ill will here ..honestly.
I have been a res inv for over 3 decades and sure there have been "interesting times"...but overall...I cannot help smiling most of the time.
Cheers troy
Gidday Troy. I don't have an agenda. My advice is based on 32 years of being an accountant and dealing with hundreds of clients from all walks of life who've experienced all sorts of drama's with their rental properties. Many have enjoyed huge capital gains and depreciation write-offs in the PAST, the latter is of course gone now and the days of big capital gains must surely be coming to an end ? There's plenty more I could say but I'll just point out that you're coming from your own personal experience whereas my experience is based on a vastly wider sample size.
Anyway back on topic, personally I am FAR more comfortable putting a few hundred thousand into Summerset where the elderly tenants have a vested interest in looking after their units than buying a rental property where who knows what a tenant might do ? must weigh on the average investors mind, surely ? (Yes I've owned rental properties before, in case anyone is wondering).
Roger thanks for that.A few points.
-Depreciation claimed ...you still have to pay it back right ???..when you sell.
-"huge capital gains must surely be coming to an end "...a very bold statement.Were there not 2 747 planes loaded leaving NZ every week some 2 years ago and now are is there not a reversal occurring.
-has not the building of new houses in recent times slowed down for a variety of reasons....
-Leaky homes...are there not remaining in NZ 100000's of these "poly castles" that will need to be bulldozed/rebuilt...here in CHCH we have 1000's of them ...rows of them in street after street....they aint going away....honestly you can see them when it rains...the timber framing is visible
-having said that I have always believed that the continuing good fortune of the likes of RYM MET SUM is dependent on a healthy residential property market
As an aside me hopes that the above 3 do/did not/have not succommed to any cheap building philosophy blah blah...like some schools have..
cheers troy
To the best of kmy knowledge N.Z. has the third highest house prcies relative to income in the world, sorry don;t have a link off the top of my head to verify that. The timing advantage of previously being able to claim depreciation each year, (negative gearing and tax losses) has been a major driver behind residental property investment in my opinion. Of coruse you have to pay it back but by then you've hopefully got a capital gain to fund that. If our housing is already almost the most expensive in the world relative to income that should be something the average investor might want to take into account.
The reason I went off on this tangent was to answer another posters (perhaps rhetorical), question and to illustrate the difficulties that people face in rental property investment relative to the simplicity of investing in the listed retirement sector. A share in a geographically diversified retirement homes, with a one way bet on the future price movements of same, fully managed, units tenanted by elderly folks with a vested interest in looking after the property and who have to pay a full refurbishment fee when they leave, a sector with extremly favourable tailwinds e.t.c.
With respect, I think we've gone far enough off on this tangent without talking about migration statistics, leaky building problems e.t.c.
My contention is that an investment in shares of say $400,000 in the retirement sector even if that's all in SUM is lower risk than the investment in one rental property. More than happy to back that opinion up with action :)
If this stock isn't $4 or close to it by the end of march 2014 after Sums annual result, failing a major market correction period then I'm out of the market,i can't be bothered putting up with numskulls who don't know true value forever.
Fair call cheers
Bye the way...re investing...Im now 57...one of many things Ive learnt is that the return from putting a bit of effort (like talking to folk and maybe mowing the odd lawn) has by far returned me more dosh/satisfaction than a phone call/mouse click (shares) over 30-35 years.
Cheers again troy
Fair call cheers
Bye the way...re investing...Im now 57...one of many things Ive learnt is that the return from putting a bit of effort (like talking to folk and maybe mowing the odd lawn) has by far returned me more dosh/satisfaction than a phone call/mouse click (shares) over 30-35 years.
Cheers again troy
oops sorry