Anyone know why MET is up 3% today? I'm not complaining!
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Anyone know why MET is up 3% today? I'm not complaining!
From what i can see MET and SUM seem to drop around June (maybe tax selling) then have a rebound leading up to results in August. Seems to be a good time to buy both.
Is there any particular reason why MET - and SUM -should be singled out for tax selling? I think it more likely belated realisation that the anticipated increase in ageing retirees in NZ is a much more important driver of retirement stock fortunes than the ups and downs of the property market.
Bull.
Not being funny but look at the average prices of houses down your street.
Then figure out whether you think those people who are about 70 years old living in your street would have a mortgage.
Then ring your local retirement village and find out the price of a two bedroom unit.
Get back to me if the unit is over half the price of the oldies current home.
True that the providers will have to meet the market to some extent, but during the GFC years house prices in real terms only declined 15% and so the retirees that can afford it are likely to still be able to do so (those that can only just afford it now would be the ones squeezed out of that market). So a decline is not going to make as big a dent as people think. Don't forget that even if the provider takes a haircut on the sale of a unit during a recession, they still get the resale in x years time when the property cycle will likely be at a different point. It's not like other businesses where when you sell a product it's gone and you have to make a new one to sell. Excluding the new construction (which they can choose to delay a lot of the time) they're just recycling the same product over and over again to new consumers.
Funny thing is NZ property market never had the cycles as have overseas markets , anyway selling a unit at a lesser margin hoping to gain later down the track doesnt take account of the ever higher debt profiles of the sector and the holding costs associated which means later down the track could still mean a loss.