Thanks Maverick for your thoughts and the time you spend on it.
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Thanks Maverick for your thoughts and the time you spend on it.
Ditto thanks Maverick so generous sharing your analysis, much appreciated.
excellent insights Mav, thanks for all the hard mahi
fabulous post Mav. you are the one I always trust and follow.
Thx Mav. You are not Graeme by chance?
Regretting not taking up recent share issue. So many hick ups with getting $$$ together time ran out due to busy week before issue closed. Never mind, will lock for opportunities elsewhere.
OCA in good shape. Expecting yield to be up and dividend up. Property prices merely a blimp in overall picture.
It is the silent generation in villages at the moment. With property prices and trend in ownership rates in NZ, many Zoomers will need to inherit property in order to become owner-occupiers.
However with tax reform and changing attitudes, real estate ownership may not remain the financial and investment lynch pin it currently is for NZers. So for retirement companies other ways for offering village membership to customers/clients may be developed. Anyway that is some decades away.
Back in the day, after the 2017 election, Tracey Martin floated the idea of forcing retirement villages to provide a % of affordable housing (whatever that means), and that it was being discussed in Cabinet. AFAIK it died a death, but of course it could be revived. Just needs a captain's call since affordable housing is the political imperative du jour, at least in theory.
Good point about inheriting. Plus there is a huge number of properties in trusts, probably many already rented by the next generation/s as beneficiaries. Rented although they are now counted as owners in the census (using the Briggs adjustment).
Having expensive real estate, with gains beyond the increase in incomes, is a two-edged sword. Younger earners pay a large percent of their earnings in GST and income tax whilst older (on average) have been getting hefty untaxed gains from their owner-occupied homes. With so much of NZ’s wealth in housing worth many multiples of median earnings, it is little surprise that younger generations have their eye on their senior family members houses!
The people entering rest homes would be about 70 years old plus. There kids would be 40 to 50 year old range. I think they would already be established on the housing ladder by then. If an adult son or daughter is trying to manipulate their parents for their own greed, they are bad people to put it politely.