Looked a bit like an abandoned baby at the end of the day. ;)
Disc: Very happy long term holder
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Certainly not an abandoned baby, maybe you could let it go, it’s not helping imo. ? i know you’re teasing the ta’s, but we’re all in this together
OCA might benefit from the met payout, though it might not, who knows. I think it’s irrelevant really as OCA has already rerated nicely. Just beginning to price in the future state business model
Question is short term whether we can hold these gains, maybe build on them, or wait until the numbers speak for themselves.
Not selling and building a cash position to ramp into my target holding. So close it’s quite exciting
"Looked a bit like an abandoned baby at the end of the day. ;)"
oh no.... a government depart will have to come to the rescue....
spluttering fizzer... how about a buy the big dipper...
Unfortunately I was out and about yesterday afternoon otherwise I would have given it a cuddle at that price.
Probably time I stopped teasing the TA experts. Quite possibly isn't helping.
Just over 2 months until the half year results in January which (if Mav and I are right with our analysis and I am backing myself to the hilt to be right and I know he is too), is going to stun the market and leave the analysts gob smacked and scrambling to revise their price targets. Forsyth Barr will have to dramatically raise their $1.65 price target probably by about 50 cents like they did last time, this time to $2.15 !
"a cuddle at that price"
oh what a relief,,, no need for government support after all.... except for some retirement age care subsidies.
happy to buy more up to about 1.50 when then time is right and i think looking at the chart it stays very steady for long enough to allows some time after the eager beavers have had a bite.
Some people just love to see patterns in the swirling pools of down stream water ways....
stoppa hydraulics
To be fair to the analysts covering this. Maverick and I can apply substantial amounts of time on our analysis. How much time they spend on it I wouldn't know.
the top anallist on sharetrader is back into oca , lets rock i think its going to $2 based on my expert opinion , ive upgraded the number of old people that i think intend to buy oca units in the next 60 days to bump there profits up to the top end of or better estimates
No anal for me please
Go get a Carrot Bull and eat it
Bull with the upgrade. Watch out.
Reminds me of the line from the show "Arrested Development."
I'm an analyst AND a therapist. An analrapist if you will.
Good to see some decent buying support yesterday.
Lets see where these Retirement stock go ....posted on 4/6
Updated -----------4/6----------..6/7--------------5/8.................8/9..................7/10............7/11
Arvida ..............$1.37..........$1.48 ............$1.60............$1.65................ $1.77.........$1.78
Summerset.......$6.34..........$6.73.............$ 7.80............$8.56...............$9.15......... $10.50
Ryman..............$13.35........$13.04 ..........$12.77..........$13.79.............$14.8 5.......$14.70
Oceania............$0.94..........$0.95 ............$1.03..............$1.04.............. $1.20.........$1.36
Metlifecare........$4.28..........$5.76 ............$5.92.............$5.94..............$ 5.98 .........$6.00
I suspect most posters here are pretty well just waiting at this point for the January HY1 result to see for themselves if the point of inflection has indeed been reached and what it materializes as. I've personally got nothing to do now apart from sit on my hands until then.
Sooooo…..just for mental occupation, I've been exploring the effect of these heafty property price rises (currently HPI 15% yoy) and what net effect that will have on the OCA bottom line.
Firstly , there is a huge difference between monetising profit on house price rises from being a direct landlord compared to owning a piece of a retirement village. The landlord can only access this capital gain on the sale of the house. He can not put the rent up just because his asset is now worth 15% more as the rent limit is capped by affordability of the tenant, therefore increased cash return is tied more to wage inflation and less to the new value of the house.
Whereas the DMF structure does fully capture the HPI rises in cash because the incoming resident sells the family home at the new market rate and then pays the new market rate of the OCA unit. Therefore the new DMF price is directly tied to the HPI. Any OCA price increase will always be affordable as the new resident will have the same ratio of increased wealth to pay with.
Then moving on to how much HPI increase flows to the OCA bottom line. It gets tricky here because there are loads of effects intertwined.
For example;
-New sales profit margins are affected disproportionately greater than the HPI rise itself as any dollar earned extra is pure profit as there are no extra costs to earn it. (it also doesn't costs any more to build stuff which is now selling for more).
-Resales margins are also disproportionately higher as noted above.
-Both new and resale downstream DMFs are now also higher.
Enter the spreadsheets…..It turns out it's surprisingly easy to model different HPI assumptions as all the s/sheet cells are already set up interconnected to each other making the above considerations automated. FWIW , until now I had assumed a general 2% HPI going forward even though it has historically been about 3.5% average the last few years, just to stay conservative.
The result turns out simple and consistent;
For each 1% HPI rise equates to about 1% increase in underlying earnings, thereafter about 0.6% for the following 3 years as the increased DMF effect washes through.
So with the HPI increase currently at 15% that implies if OCA was to put in a "no growth" year of $50m underlying once again then this time it would now actually be $57.5m and the following 3 years about $53m.
This simple scenario is based on house price rises alone to demonstrate the net effect. There is no consideration for;
New deliveries ,
high “catchup “ sales volumes from FY 20, completion only finalised post lockdown in FY 21,
inflection points,
or multiple other things which are also currently in play.
Of course this fully applies to all the other village operators too. It's easy to see why SUM is so popular right now being biggest beneficiary by having the most empty stock available to capture this wave.
As previously stated I also have the HY1 forecast at about 12cps (annualized underlying ) inline with Beagles. I acknowledge this estimate seems ridiculously high given OCAs results to date but however I try to fault the numbers and assumptions, this result still sticks.
There is absolutely no doubt in my mind the result is going to be VERY impressive.
Anyone modelled the "house prices never go down " , Helicopter Ben. Yes not likely in the next 6 months.
I like MR M having a spreadsheet model because for this company transforming, the model would need a lot of work and is very very valuable..
ok not usually in on a sunday evening whatching local Tv1.
reports of 250 thousand kiwis returning from world wide over next 2 to 5 years.
house prices?
Already is outstripping supply. Good grief telephone numbers...
In an interesting coincidence a couple of weeks ago I had a good chat with the PWC partner that used to be in charge of the OCA audit, (very bright guy).
His comment was these retirement companies are mainly an asset play and with OCA you're only paying a very modest premium above asset value especially after the very strong year we've had in the market. Of his own volition and without any prompting from me he brought up my pet subject of Ryman's premium to NTA, (last time I looked it was about 3x NTA) and shared his thoughts that's it's much harder to get a decent return out of property when you're paying so much for goodwill.
Reading between the lines I gathered he would be happy to own OCA if he could. Partners of PWC are not allowed to own shares in companies they audit, (perceived and possible real conflict of interest).
Anyway...for what his comment is worth its worth noting now that MET has gone ARV trades at the lowest premium to the last reported NTA at 40% and OCA is 43%. SUM is more than double NTA and RYM just over triple.
Yes just read the herald article on it....
yikes in this very very quiet corner of the golden tri angle one can only here the sound of cows and some horses...but it appears in the quit towns and city of these tiny islands the herald reports with statement like ..
""It's by far the biggest month that we've ever seen and I think part of that is that the banks are under pressure, there's lots more people seeking advice. It's huge numbers, unprecedented numbers nobody's seen before around everything to do with housing"
prehaps we dont have enough OCA and we should be selling assets in other sectors as soon as they return to cost price ... getting close..
i being to think MR B might see his above 2 dollars and then skys the limit?
I was thinking prehaps the partner has a family trust and he can own them at a hand off distance.
my fav read is a 1995 research document on advance trusts in the ACA library... not sure its still on the accounting societies research archives but its worth a good read.
Family trust may breech the associated persons test of conflict of interest rules that I believe the big firms have as a condition of their terms of audit engagement.
https://www.nzherald.co.nz/business/...FD66XAMS3QN7E/ Paywalled article
Nub of it is...nothing is going to stop this real estate market going up.
good reasoning , like i was saying much earlier on the thread do up the shi..ers and sell them for more. basic property play and in a hot market as now as you mention you can now sell the re-no's for much more at a stable cost input. there should be some re-valuation gain backs this half as well which should inflate the result as well. dividend should go back to normal levels at least.
nice post Mav
Just focusing on the DMF tho.
Are you assuming much benefit to the company from the DMF.
The DMF is a percentage of the original purchase price. hence by the time it is collected it is based on an out of date number .
On their website it is actually referred to as a Facilities Fee - correct? It is deferred but runs at 10% per year cumulating to a max of 30% after 3 years.
Isnt this allocated to maintenance of the dwelling though. In which case it is money in and money out unless the fee paid can buy more maintenance than is required. I guess at 30% (lets assume most stay that long) it will cover 3 years of maintenance easily enough. but say they live there 6 or 7 years, will there be any benefit from the payment as it is capped at 30% of the original price (now very outdated) and will most likely be fully spent on refurbishing the unit.
Take an average priced unit Peat, lets call it $700K. 30% of that is $210K. I would suggest a typical restoration and refurbishment of the interior of a unit is a pretty small fraction of that figure but of course the real money is made from reselling that unit (they have reimbursed the estate for at $490K), at a significantly increased price to the new incoming resident.
I believe, although could stand to be corrected as I haven’t looked into this for ages, but the gain on resale is net of refurb costs as well.
Hi Peat, good to get a gritty question from you to chew on especially on such a rainy day.
Winner and I went through your DMF /facility fee (same thing BTW) question about a year ago. We both viewed the DMF quite differently.
Winner originally saw it as you outline here, that it's a fee fully used up for the upkeep of the facilities.
I originally saw it quite differently, as mostly profit under a pretty label of “maintenance” in order to be more palatable to residents.
You decide for yourself how to see it after looking at the numbers from last FY. (Note I'm only using the “village” section of OCA and not including the “care” section DMF for simplicity.)
.................................................. .........................Fy 2020(a) .......FY2028(e)
Village DMF............................................... ................21.4m ............92m
Service fees (this is a weekly cash fee ) .......................6.0m ..............10m
Other income............................................ ................ 3.4m ..............4m
Total income............................................ ...............30.8m .............106m
Net village operating expenses...............................-15m...............-30m
Net Village profit............................................ .........15.8m..............74m
I have put in my own end of pipeline numbers (estimated 2028) to demonstrate how the growth of the DMF is one of the key drivers for OCAs profit expansion, especially important when the new sales margins dry up.
I think these numbers demonstrate that a large chunk of DMF is pure profit and not used for expenses. It also shows that the profit % of the DMF increases substantially as OCA converts more of its product to “high end” and then resells it under the DMF system.
Hope that's helpful Peat, did that answer your question?
Hey Mav, I presume by end of pipeline in 2028 you mean the end of the foreseeable Greenfields and brownfields developments with existing land stock ?
There's no question in my mind the real tidal wave of demand for care suites comes as the baby boomers hit their mid 80's which means this company will have a huge and building demographic of demand growing for the next 25+ years. Plenty more land to be bought in the years ahead to continue building new facilities to meet such strong demand and with their excellent sector leading development margin I foresee this as being a superb long term hold well into the 2040's.
Cheers Mav, yeh its just horrible today , struggling to get over 10 degrees!
Your answer confirms that the DMF is worth investigating rigorously. It really boils down to the cost of refurbishments and certainly 210k (Beagles average DMF) seems a lot to restore a unit and no doubt will go a long way on 3 year stays but after a couple of say 7 year stays there will be roof replacement, full exterior painting - more costly requirements to restore the unit to something that can be sold for a premium price. While these may still come in under that 210k figure I wonder if sometimes a good substantial chunk of it may be required.
What really needs to be understood is the life long costs of maintaining a unit until it is rebuilt entirely. This will depend on the quality of the original construction I would imagine. I would expect these dwellings life expectancy to be less than a normal house due to the higher standards of modernity required by the (choosier) ongoing incumbents.
I have no idea how you model this but I guess it would need to incorporate an increasing rate of maintenance until an expiry date for the original construction ?
Yes Beagle, that's exactly what I mean.
While it seems there is plenty of demand out there already for cares suites, their profitability is certainly good but it really pales in comparison to how much OCA will make by delivering high-end apartments in wealthy areas.(land freed up by building high density care suites off to the side) That's were the real coin is in my view.
I also see plenty of competition coming in from the other players, after all there is not really that much special about a care suite that others cant easily replicate.
So rather than them focusing on just building more care suits at the end of the current pipeline I see them as doing a RYM or SUM and heading over to Oz.
But that's all way down the track and they've got their hands full for now.
Attachment 12070Its good to see the blue candle of Friday after the dangerous looking candle the day before. Winner wondered that ones name - I think it is pretty close to being a marubozu , though they stricly speaking should have no wicks at all.
https://hitandruncandlesticks.com/ma...stick-pattern/
And while it was a bit scary , a strong down day with high volume , putting it in context of the previous hammer made it less so. A trader may have even bought on that low looking for support at the 130 level at the lowest point with a stop close to that. Resistance in the early part of the graph has now become support....
Was talking to Greg Tomlinson the other day (total name dropping there but its actually true), he commented that these facilities have always been up for a full overhaul every 50 years or so. And that's pretty well what OCA are currently doing by knocking down those older 70`s buildings.
As far as the lesser maintenance items goes , I do not think it would cost much to fill a few nail holes on a wall and blow a new coat of half Spanish white around every now and again. The big ticket items such as new roofs and exterior painting surely must be pretty cheap per unit divided by many years in between with the new high density design and modern materials.
Any damage caused by the resident throwing a TV set out a window etc is charged extra back to their estate so those costs are contained.
So I personally see the maintenance costs per unit reducing in the years to come as a combination of the above and also the efficiency of scale due to more high density dwellings sharing the overhead.
I think you will find the average cost of the internal refurbishment of a unit occupied by an elderly person, (especially in a short stay, average about 2.5 years, care suite), is quite low. Sometimes all that's needed is a good steam clean of the carpets and drapes.
"Perhaps you should consider doing some structured professional development so as to ensure you fully understand your responsibilities."
it doesnt mean he has to have a trustee role.
prehaps just prehaps we have been creating a very extensive property data tracking solution for journals data for several years now in relation to the new legislation. due to the fact that most solutions were created before extensive data tracking was though of in base journal data storage.
we have been preparing for the new local legislation for several years now before returning to europe.
One of the main problems with older data solutions is the lack of transaction auditable data tracking solutions specifically for trusts.
It something we had been working on long before the lawyers decided after decades of law suits filling up the mediations of family trusts and estates to bring new legislation on the books.
oh sorry about that... yes we have a HUGE project going for the last oh i dont know... a long time to create a secure journal data monitoring solution so inter entity auto transactional model can exists and the data transfers be tracked specifically for the purpose of auditing money transferred into and out of trusts.
we wish all holders the best of luck and the very best wishes in there investing futures.
Cheers to all and best wishes. Many thanks to MR B.
oh yes i nearly forgot... not wanting to scare the horses but.. when they say they are using AI. what they mean is your on line data is being aggregated..that includes your transactional data. good luck.......
[ : ] & [ : ] ...
Steady on fellas with the glowing scenarios ... I desperately want a few more OCA shares but have to wait to December. I don't want to be paying more for them, please taeho ;)
People are going to natter about shares mate as sure as day follows night, especially when they can sense really good gains coming in the near term.
Good though you're planning on buying in December before the Goldrush in January.
No you're free to talk about OCA as much as you want beagle, mine was a tongue in cheek comment ... i already owned and liked the company before joining ST, and appreciate your posts and enthusiasm. This year has been a profitable Rollercoaster so I intend to keep in
Yeah me too, either that or another shock and get them much lower. Either way there’s another truckload coming in December. For this one, with a genuine long horizon, while it’s early days relatively, it really doesn’t matter too much what the buying price is. 5-10 years from now, a few 10’s of cents buying is neither here nor there.
Right peeps, I wouldn't mind adding a few more of these to my portfolio too, but I'm in a bit of a predicament, and no doubt I'll cheese some off for going "off topic" and bringing up the T word again, for which I apologise in advance, but for me it is very pertinent to this stock and this thread does have a greater portion of switched on contributors, so here goes...
So I've accumulated a good chunk of these (all relative of course) over the last few months and my average is sub 80c. I'd like to buy another parcel with some cash that I may need to pull back out of the market again in the next few weeks or months, but in the interim hoping to make a tidy little capital gain. So let's say I bought a bunch today at 136c and sold them again in 2 or 3 months for say 163, netting a tidy 27c per share / 20% gain in the process. However, because my average buy for all my OCA is 80c, does the tax man consider this as an 83c gain, upon which I'm expected to pay 33%, or 27c per share? In which case all I've done is transfer 27c from other investors to the IRD. And in the quite likely scenario I don't manage to get that 20% gain, I'd be in the red. No doubt this is a grey area and the vast majority of investors / traders probably wouldn't give it a second thought, but unfortunately I am and it's seriously stopping me from plunging deeper into this stock. Any experts out there to tell me I've got it wrong and have nothing to worry about and to just go all in?!
Thanks in advance and sorry for the "off topic" but there's nothing else to do around here until January, right?
You could treat this latest parcel as an on/off trade (LIFO) in which case you would only pay tax on your 27c gain otherwise the tax would be payable on the difference between your average cost price of your total holding and your sale price as you have alluded to.
Cyclical, seriously don't do this. If you need that money in the next few weeks or months, don't go anywhere near the stock market, With the stock market so high, volatility high, and such a small time frame, what you propose is pure gambling. Stick your money in a three month term deposit at 0.4%. That is about as risky as I would go in your situation.
SNOOPY
Great news out overnight from Pfizer. Vaccine with 90% efficacy. WOW. That gives a LOT of hope to a LOT of vulnerable people. Its a wonderful day for humanity ! https://news.sky.com/story/coronavir...anity-12128452
Absolutely - very sensible comment.
Nobody can predict at any time what share market jitters are around the corner, and at current it does not even look like calm waters ahead. No guarantee for a peaceful transfer of power in the US. Northern hemisphere Covid wave will take a terrible toll. Economy will at some stage run out of borrowed money and unprecedented debt mountains might start crashing down on our economies.
Huge opportunities for traders, but even more than usual risks to put money short time into the share market.
Thanks for the advice guys. I should probably rephrase from "may need" to "may want" those funds. It's not money that I'm going to be relying on specifically, so I'm comfortable with the risk and if I'm down 20% or something, I won't sell, no dramas.
Anyway, if what Bull is saying is the case, then it's just not worth it unfortunately. I wonder how many traders out there think like this. I myself was trading this stock back when it was on the 80s gaining a few percent here and there but completely oblivious to the fact that the tax could be reeming me considerably more than my gains :-(
Never let the need for paying tax stop you to do a good deal. Sure - if you are trading, IRD will want its fair share ... however I can't see how they want more than that.
Say you pay the new top tax rate (39%) ... still better to gain 61% of a nice gain rather than to have nothing, isn't it?
Agreed in principal, BP, but I'm not sure you understand my calculations...
Buy @ 136
Sell @ 163
Margin = 27c or 20%
Unfortunately it's not going to be 33% tax on the 27c (9c) because my average buy for OCA over the year is about 80c, so in the eyes of the IRD...
Sale of new parcel @ 163
Average buy = 80
Realised gain = 83
Tax @ 33% = 27c
That's a pretty tough result. Breaking even and that's before you consider brokerage and the risk that it may not see a 20% gain. Surely the system, if it is indeed strictly FIFO, is flawed and that LIFO would be a much fairer accounting method in this instance? Grey AF I suspect, unless it's well documented somewhere...?
Yes that's true but in relation to the question Cylical asked about whether his sale would be taxed according to the avg buy cost of his whole holding if he bought a specified trading parcel now, the answer is no it wouldn't, I'm taking it that the rest of his holding is a long term hold.
There's a separate thread about tax here https://www.sharetrader.co.nz/showth...&highlight=tax
Can we please get back to OCA ?
I would imagine there's huge relief amongst vulnerable elderly folks regarding the vaccine news today. What a great day for humanity. Thank God for our wonderful hard working scientists who have worked so hard on this breakthrough ! More than 90% effective !! https://www.cnbc.com/2020/11/09/covi...infection.html
NZ’s IRD may require you to use a specific sale allocation method in your situation (often FIFO), consult your accountant for information specific to your situation
https://www.sharesight.com/blog/calc...0from%20shares
Thanks Couta, much appreciated, yours are exactly the type of useful responses I was looking for. I'll be in touch and refrain from further off topic comment in this thread...wouldn't want to upset the resident "accountant" any further for polluting his beloved thread :D
I use LIFO to value my closing stock. Although I haven't done it yet, I would also use lower of LIFO cost and market value. In a rising market it would be preferable to use FIFO, but as I don't like to chase a stock when the price is rising, FIFO is not as lucrative. But I am not so sure about changing between the various methods, you could become unstuck. But have to get caught. Like it was said in the end it doesn't matter.
If your interested in OCA then why wouldn`t you? While your there make time to check out SUM`s new Rototuna and RYM`s new Linda Jones. Having a look at all three will give a good representation of different styles between the operators.
If you are tech savvy enough is there any chance of a photo? It was just foundation work for the apartments there 4 months ago.
I've never understood why people would visit the Hamilton gardens when there are just so many retirement villages to tour.
Just do it yourself, study up and listen to people who know what they are talking about, people that haven't used an accountant for yonks and get things right.PS-Havent used an accountant in over 20 yrs and see no reason to use one going forward, no disrespect to Beagle of course who im sure does a top job for his clients.:cool:
I consult with this firm for anything really difficult. https://www.nsatax.co.nz/ I hope people understand I can't put myself in a position of giving tax advice on here without the full knowledge of all relevant details including a full analysis of investing activity in recent years.
Can we get back to OCA finally ?
A truly fascinating case study in the power of compounding annual tax free growth, one that all students of value creation should take careful note of.
RYM listed in 1999 at about the same price OCA is today and 21 years later after a stock split 5:1 = over $15 today.
By my calculations original investors have made 57 times their original investment in capital gain plus all dividends along the way.
SUM listed about this time of year in 2011 also at about the same price OCA is today and they're now worth 8.3 times the original float price just 9 years later plus all dividends.
Nothing like the above could ever happen again, surely not ?...or could it ;)
If I can do it myself, I'd rather invest my funds into shares. Although my last year or two of self employment in the UK I did hire an accountant. He was pretty cheap and absolutely more than paid for himself. He had with him a book titled something along the lines of "Legal Tax Evasion". I suspect there were a whole lot more hand outs, concessions, loop holes and write offs etc over there that could be exploited with the appropriate knowhow...
Yep, happy to learn the ropes, I'm a numbers guy and do find this stuff interesting, plus used to do my own accounting in my self employed days (pre UK).
Thanks for the clarification, Beagle, I had wondered, as you are usually pretty mum on the subject and quick to try steer conversation in a different direction (back on track as it were). Cheers for the link too.
Roger, Roger.
Thanks all for some great discussion and sorry once again for high jacking the thread.
An update on Awatere is coming...
Just arrived here this evening, meetings all day tomorrow before heading back to the Naki, so thought I'd better do as instructed... It was wet and dismal and starting to get dark, so apologies for the average pics.
The first thing that stuck me was how big the site is. From what I could see, and from yacking to one of the residents, we've currently got an apartment building, opened in 2002, to the left end of the site (looking from the road), and the rather flash and modern looking care suites / hospital building to the right end, which said resident was raving about. She told me to come back for the full tour...that will have to be another time unfortunately...
Between those two existing buildings and set back further from the road is the new block that I guess you were saying was just foundations 4 months ago, Maverick? It's now 2 stories high and she tells me this will be 5 stores when done, which I'd expect will give pretty awesome views up and down the river, which is out the back.
Attachment 12079
Attachment 12080
Then out the back of the existing apartment building, left of site, they've laid the foundations for another apartment building which she tells me will be 2 stories plus a carpark underneath. I don't know that this will see the river, unless there is some serious pruning/culling of trees out the back, or maybe it will, hard to tell. This pic shows the foundations for the 2 story, with the back of the existing apartment block on the right and another angle of the growing 5 story in the background.
Attachment 12081
Here's a shot of the care suites complex.
Attachment 12082
Back in my landscaping days, I used to have a monopoly on the lovely big old houses back towards the Fairfield bridge, so I know the area pretty well and it's certainly in the upper end as far as Hamilton goes. Seems to me like a great place for OCA to be doing this development and the visit gave me some appreciation as to why they've gone down the demo/rebuild path as opposed to the greenfields out on the edge of town approach. Was great to meet one of the residents that had been there for a few years and to hear her enthusiasm for what was going on. I somewhat doubt this particular site has reached the "inflection point" but when it does, it'll be a cracker.
Great job Cyclical! Definitely a reputation comment for you.
I can't access the photos but your descriptive story is plenty to go by.
They are building 63 apartments and a community center so I suspect the smaller car park building will be that (but I'm not sure,it wasn't there 3 months ago).
As far as inflection goes , that site is a good example of it being reached. They bulldozed 106 care beds and now have 90 fully operational care suits instead. It will now be mostly full of full fare clients (rather than the existing guys “grandfathered in” from the demolished beds) .
So you can bet your wad of free cash that the site will be making more money now than before the project commenced. That sizeable area of dirt they have unlocked and are building on is not costing them anything.
It's when the 63 apartments get sold that the super profit rolls in. They also have another potential 74 apartments unlocked and available to build after this lot.
I find it exciting and satisfying to do a site visit like that when you see how your money is being spent and to get an understanding of the massive planning and engineering involved. People who will only buy domestic rentals (and not shares)because they can “touch it” would improve their perception of share investing to see a site like this.
Thanks again for taking the time to post Cyclical, Ill bet you are a little tempted to run that “trade” now?
Thanks Cyclical. I can't access the attachments either but your narrative gives a good insight into the unique attributes of this brownfield development.
In this red hot property market I really like how OCA are making maximum use of existing sites which will pay huge dividends down the track and its clear that some of the long established sites have unique attributes than a greenfield site wouldn't enjoy.
If anyone is in St Heliers have a look at the Waimarie site. You can't get on there with it all being fenced off and earthworks underway but just have a look at the view from the street. What a stunning location with breathtaking views ! Might wander over and have a look at the Sands at some stage soon.
Hey Mav, what are your thoughts on the Sands ?
Hey I live close to the Sands; I see it once every fortnight when I go to Browns Bay; it is a jewel of a location - close to all the eateries in flat Browns Bay; it looks extremely well maintained. It is a very impressive property right on the Beach. It made me invest in OCA 6ms ago when I drove past it.. I'll take a closer look next time in down there.
There's quite a bit of construction going on in Browns Bay with an apartment complex being built where the old supermarket once stood (be interesting to see what they are going for $). It is a very good spot in both NZ and the world to put your feet up.
The views are stunning! My Grandparents’ house was 28 Waimarie St (right at the front of the current site) and I can remember vividly watching fireworks from there as a young girl - felt like the view went on forever! And that was only a two storey house. Thought it was a good reason to reinvest in OCA :)
LVR will be reinstated early next year
Welcome to the forum and thanks for your feedback. We did a lot of our boating just out there. Our favorite trip was just to hop around to the north side of Motuihe Island in the summer and relax in the sun...just a short trip from Westhaven Marina but it always felt like we were a million miles from the stress of the city. It will be truly fabulous to have an apartment with such a stunning outlook when the time is right for us. https://www.motuihe.org.nz/
agree Posh. Grew up in Bay Road close to Waimarie, and it was always known for the stunner views across the harbour and city. But the steep descent down to the Bay will test the mobility scooters. .Aarhh, St Heliers, after school wandering down to the Bay for swims, and hanging out. More crowded today but still beautiful. OCA onto another winner with this site. Disc: hold a solid parcel
Jumped on board today, have been watching this one rise for a while now but didn't have the spare capital, good to be in now, I was hoping it would stay down longer but never mind, as mentioned earlier in this thread .10c here or there won't matter in the long run.
I appreciate all the time spent anylising this stock by the likes of Beagle and Maverick and others here it helps reassure ones desision.
Good spot that Deep Creek...I think I mentioned a while back we had a meal and drink with some friends there and it wasn't until we were leaving that I realised what we'd parked directly outside of...The Sands...impressive looking complex indeed and a real jewel in the crown.
OMG the worlds out of control
Hope Oceania et al reprice their units
prices rise nearly 20% in a year to median $725K
https://www.reinz.co.nz/Media/Defaul...ber%202020.pdf