OCA - Oceania Group - retirement villages

[justakiwi]

Which is precisely why Care Suites will, in my humble opinion, become the standard for "continuum of care" over the next decade.

No need to guess which provider is "best positioned" to meet that need.

Ya just gotta have a retirement village operator that offers continued care as one’s health circumstances change.

https://i.stuff.co.nz/business/prope...ement-villages
https://i.stuff.co.nz/business/prope...ement-villages

[Maverick]

Which is precisely why Care Suites will, in my humble opinion, become the standard for "continuum of care" over the next decade.

No need to guess which provider is "best positioned" to meet that need.

I got my wife to read that article to double check own reaction to it. She`s far , far more empathetic than I. But even she came to the same conclusion...what a dumb /misleading article.

The first lady has effectively paid $5k DMF fee for each year ( and reducing as she lives another year) to live in a gated community, presumably with a social calendar and with zero maintenance costs (saving a fortune over 20 years). Her financial advisor at the time of signing recommended she keep investing elsewhere as she aged which she obviously chose not to. Now she is grumpy and wants things sorted .....retrospectively!
Next poor soul is moaning basically because she bought a $2m unit which she now wishes she had bought the $1m one. She knew she had 90 days to withdraw but didn't.
The writer of this article is clearly trying to pull heartstrings of her readers. In reality things must be very well in RV land if this is all the fuss the author can conjure up...2 clients who want to blame others for their own choices and inactions.

What is of more interest to me is the words of Nick ( independent property expert from outside the RV space)...

Core Logic head of research, Nick Goodall, says retirement villages’ ORA model makes it difficult to measure the market, but, given the ageing population, he would not be surprised if values in the retirement sector held up better than the rest of the market.
“Especially as ‘buyers’ of these properties are likely to have equity built up from other property ownership and are therefore less affected by the affordability pressures faced by other owners/buyers due to increasing interest rates.”

This, coupled with multiple other sources indicate RV prices are not falling in fact the latest round of results show rises even as NZs average HPI has reduced 15% from peak. Brent also said recently "OCA are price setters not price takers". It is clear prices are not retreating nor looking like they will. The article also states the client pool is about to double in the next 20 years.

So while this article is obviously attempting to villainize the RV industry, all I see is more underscoring that's it a terrific place to invest with 98% happy residents.

[justakiwi]

I agree with you Mav, which is why I didn't bother to comment on the actual article, but to dubya's comments re continuity of care.

I do stand by what I said though - continuum of care is going to be a game changer in my opinion. People needing to move out of their home in their 80's are going to find the care suite model very attractive in more ways than one. They are the option that will provide the highest level of "peace of mind" both for the resident and their families.

If you had asked me five years ago, I would never have believed I would say this ... but if I was in the financial position to move into an RV at 80, I would choose a Care Suite without any hesitation whatsoever. Guaranteed home for life (barring the need for secure dementia care), continuum of care as my needs change, and a really pleasant/attractive suite with everything I could possibly need. OCA will be very well positioned.

As you say, the vast majority of people living in RVs (all levels of accommodation) are very happy. One should never underestimate the value of "peace of mind" in one's senior years. Its a damned shame the general public and media, are so quick to condemn. RVs are the future for Aged Care whether they like it or not, and I for one am happy about that, providing of course, those who need full government subsidisation, have access to care. As far as I am aware, OCA is the only provider that has committed to always providing that lower level of care.

I got my wife to read that article to double check own reaction to it. She`s a far , far more empathetic than I. Even she came to the same conclusion...what a dumb article.

<SNIP>

So while this article is obviously attempting to villainize the RV industry, all I see is more underscoring that's it a terrific place to invest with 98% happy residents.

[Baa_Baa]

Do any of the 'residents' in any RV, in any of the various types of accomodation, actually "own" their accomodation?

[Maverick]

If you had asked me five years ago, I would never have believed I would say this ... but if I was in the financial position to move into an RV at 80, I would choose a Care Suite without any hesitation whatsoever. Guaranteed home for life (barring the need for secure dementia care), continuum of care as my needs change, and a really pleasant/attractive suite with everything I could possibly need. OCA will be very well positioned.
.

Always good to hear your perspective JAK, especially you working at the coal face. My mum has just gone to a RYM dementia and I cant speak highly enough of the care she`s getting.
Those care givers are angels with the patience of a saint, they really are.

UBS did some work on what influences the choice for an RV.
No 1 - Care
No 2- Price
No 3- Location
No 4- Weekly fees.
No 5- Brand
No 6-Ease of visitation
No 7- Amenities
No 8- DMF/refurb cost on exit
(the ist 3 factors where far more important than the rest)

You are totally right ( of course) that care is paramount. Fletchers can build all the gated communities they like and even share the capital gains......without full on serious care offerings they are dreaming.

[Beau]

Always good to hear your perspective JAK, especially you working at the coal face. My mum has just gone to a RYM dementia and I cant speak highly enough of the care she`s getting.
Those care givers are angels with the patience of a saint, they really are.

UBS did some work on what influences the choice for an RV.
No 1 - Care
No 2- Price
No 3- Location
No 4- Weekly fees.
No 5- Brand
No 6-Ease of visitation
No 7- Amenities
No 8- DMF/refurb cost on exit
(the ist 3 factors where far more important than the rest)

You are totally right ( of course) that care is paramount. Fletchers can build all the gated communities they like and even share the capital gains......without full on serious care offerings they are dreaming.

Totally agree my Mums in Rymans and started with Townhouse to Resthome / Special Care Dementia / Hospital all with the care and attention top grade and piece of mind for the family. Smooth transition with each move huge difference when they cater for all.

[dobby41]

Totally agree my Mums in Rymans and started with Townhouse to Resthome / Special Care Dementia / Hospital all with the care and attention top grade and piece of mind for the family. Smooth transition with each move huge difference when they cater for all.

How did it work with the sale of the townhouse and the DMF loss etc?
Did money have to be added along the way to make up the time difference at each stage?

[Habits]

Just making you aware that ZB has been running several shows on the retirement industry, these last two days. This afternoon Simon Barnett and the other guy after 1pm, last night after 10pm Nathan King, and also Francesca Rudkin yesterday afternoon.

I only heard a few snippets, none positive. In case you want to look it up

[bottomfeeder]

I can't see the review coming up with anything materially different.

It seems the more you moan the more you think you are going to get. The big bugbear of the elderly is getting a share of the capital gains on the sale of your unit "Lu ence to occupy".

Now there are some differences to owning a licence to occupy and actually buying a unit outright.

Cost - An outright purchase of a unit will cost (in the initial outlay) much more than a licence to occupy.

Maintenance - Will an elderly person have sufficient funds to carry out the required maintenance or in fact want to for the relatively short time of ownership. Can you imagine a new roof, leaky home, outside repaint, garden maintenance, new fences. I could see the condition of units deteriorating rapidly which would erode prices. Where will the capital gains be then. There would be covenants to make sure regular maintenance and upgrades are carried out in a timely manner and to standards set out, in regard to materials, colours, etc.

Capital loss- Currently if you owned your unit, you could be facing losses rather than capital gains.

Continued ownership - The next purchaser will be specified as to standards that fit in with the village. Age, state of health, number of occupiers, visitors, etc which will reduce the marketability of the property. This will further reduce demand and value.

Interior- There would also have to be covenants as to standards of interior maintenance and refurbishment, which residents may not be able to afford.

I think when it is all thought out, this would scare the derley more if things were changed.

After all RV's are not Government Departments ir charities and are not making money hand over fist.

[Beau]

How did it work with the sale of the townhouse and the DMF loss etc?
Did money have to be added along the way to make up the time difference at each stage?

She was in The Townhouse for 3 years the DMF was pro rated over 5 years at 20% of purchase price.
The Town house sold straight away went into each stage of care paying extra monthly care premium
There was a couple months lapse with settlement because of covid lockdowns at time but the difference for premium was done at settlement.Weekly fee of $100 that was to never increase for duration in townhouse ceased when she moved out.