Retirement village operators

[Blue Skies]

Retirees and their FOMO, they ought be careful what they wish for, given the gathering national anger the next price move might be downwards and the quid pro quo of profit sharing is loss sharing.

Poto Williams, Minister responsible for RV sector said last month govt has no immediate plans to reform the laws around RV's.
Although she might want to see changes, my feeling is the govt has way too much on it's hands already to do a formal review & get stuck with having to pour more time & energy into changing the Retirement Villages Act 2003.
They are not keeping up with what they already have on their plates & it's not seen as a priority.
My guess is, govt hoping a bit of sabre rattling will lead to the industry will make a few changes themselves.
The RV sector can also point to independent polls showing 95% of residents are happy with current situation.

[dobby41]

If the sector is smart they will get ahead of the game and make changes that suit them and don't disrupt their business model too much.
Lack of capital gain sharing is a business decision and people should understand that when they sign.
Taking so long (in some instances) is not something people could be expected to understand and is a rort (IMO).
Having ORA owners pay to fix the oven they don't own (and other issues like it) is also something they could fix with, probably, not much disruption to profits.
They could also redecorate villas every 8-10years.

[Greekwatchdog]

ASB Predict house price growth will slow but not fall...https://www.stuff.co.nz/business/ind...nomic-forecast

[Beagle]

We know we can rely on economists predictions because they proved so amazingly "accurate" last year

[nztx]

What did I read in the past week - 23% or so average house price increase in past year - up to $948 or $984 K

I dont believe either the current bundle of hapless Politicians or RB or any others have any idea or ability
to stem or control Market conditions - regardless of all the feel-good BS they try to feed everyone ..

The same happening globally with large price increases, on the back of their inflationary large stimulus
injections into economies across the globe ..

[Zaphod]

What did I read in the past week - 23% or so average house price increase in past year - up to $948 or $984 K

I dont believe either the current bundle of hapless Politicians or RB or any others have any idea or ability
to stem or control Market conditions - regardless of all the feel-good BS they try to feed everyone ..
.

They know that any effective manipulation of the market leading to affordability would see them ejected from government. We all want affordable housing, but only if it's someone else who suffers the loss in value. Anything that effects "me" will result in a voter backlash. Based on current policies prices may stabilise enough for wages to catch up, but I doubt it. So the standard 2020's feel-good marketing approach is the most effective intervention we have.

[artemis]

Poto Williams, Minister responsible for RV sector said last month govt has no immediate plans to reform the laws around RV's...

Minister Poto Williams has changed her mind. That didn't take long, must have had a focus group plus a couple of spin doctors assigned to help her.

Minister wants 'full legislative review' of multi billion dollar retirement village sector

Paywalled, but nothing new except that Minister Poto Williams said it will take a long time
because it's important to get it right. A phrase which usually means - look I'm new to the job, no idea what to do and all my advisers are busy with other stuff.

A couple of working groups then.

https://www.nzherald.co.nz/business/...EGMRPFGRYLI2Y/

[artemis]

I see Jade Kake has added her opinion to how badly a retirement village review is needed. Her opinion columns are usually focused on the 'Maori perspective' and this one is no different referring to a Whanau Ora research report in 2018 that found Maori could not afford retirement village living.

If the government tinkers with the current model, it will find unexpected consequences based on recent history. Not to worry, the official word from the Finance Minister is to 'look elsewhere'.

https://www.stuff.co.nz/business/opi...r-implications

[mikelee]

I'll be moving into one of these when I retire that's for sure

[ynot]

Any thoughts on this. Family member moved out of the the Heritage life unit she owned 10 months ago. They have not found a new buyer so have not paid her out. I take it there is no limit to how long it could take for her payout. I have not seen the contract but believe there is no reference to a timeframe for settlement.