https://www.nzherald.co.nz/business/...NLRAE32JC7P54/
Surprising data that should give encouragement to all investors in this sector.
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https://www.nzherald.co.nz/business/...NLRAE32JC7P54/
Surprising data that should give encouragement to all investors in this sector.
https://www.interest.co.nz/property/...wn-just-43-may
More to support as above from MR B; investors in this sector.
And more of these to come..
https://www.stuff.co.nz/business/property/300312456/plans-for-threestorey-150-apartment-complex-in-rural-horowhenua-stuns-neighbours
possible several years for the effects of investor changes to show up or more.
immigration back on the demand side to lift GDP
government may be forced into increasing numbers which may again keep demand for housing increasing.
Where are all those skilled machine operators going to come from?
The equation that is missing is the reinvestment of capital for housing to cater for the rental market and where that comes from.
We've all been there, would of, could of, should of, the most used phrases used by share investors.
Only those share investors that did not pay attention in English classes though. Those that did pay attention 'would of' (sic) used the phrases 'would have', 'could have' or 'should have'. Or the contracted versions "would've", "could've" of "should've". When spoken those " 've" endings sound a bit like 'of'. And if you write down what you think you hear, that is how the "would of" grammar corruption got started.
SNOOPY (on behalf of the grammar police)
"good knowledge of grandma in investing"
but a knowledge of gamma?
In reply to "would 've could've, should've"
And it will continue forever. But sometimes we do get it right. OCA is an inflation proof investment. It has an aging population intent of getting into its villages. Or perhaps forced into its villages. There are always very few alternatives. Even competition does not take your business away as there is excess demand. I am so overweight in this company its not funny, but I am happy and have levels where I will continue to buy and times where I will sell.
There is a threat to OCA and others in that sector and that is government intervention. I have a meaningful ( to me that is) investment in OCA and Sum (20% of my portfolio) but I am very wary of what the political muppets can conjure up. Landlords cannot claim interest expenses/costs as a tax deduction is a very good example. I rest my case.
Be very careful out there.
Yes, the government may decide to take onboard the recommendations that have been made re the sharing of capital gains. What that might look like is anyone’s guess. What I do know however, is the government needs these providers, as there are literally no alternatives. Small NGO/non-profit aged care providers such as the one I work for, have limited capacity, limited (financial) resources, and simply cannot meet the need for care, hospital and dementia level services - current or future - alone. The government may ask for some cooperation from the big boy providers, but common sense tells us they can’t dictate to any major extent. If the likes of RYM, SUM, OCA decide to pull out of government contracted care, the government is screwed. They cannot provide standard care on the scale needed, any other way. This applies equally to whichever party is in power.
At the risk of being labelled “emotional” again, I personally have no objection to some kind of capital gains sharing. I’m not talking a 50/50 split or anything like that, but I think there is room for negotiation. But no, I don’t expect anyone to agree with me ;)
In the last 12 months, banks lent just $9 billion towards investment in NZ businesses, compared to $30 billion towards loans for us buying houses off each other.
With rampant house inflation & some of the most unaffordable housing in the world risking crashing the economy & an epidemic of social problems, do you not think something had to be done?
I think the link with a harsh govt intervention threatening the whole retirement sector is tenuous at best.