They must get good deals on the bro.
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End of the month balancing I think. Many others are also going up
update on the property market: https://www.stuff.co.nz/business/101...gional-centres
although things looking flat, don't think it'll have much impact on SUM/RYM unless the ar$e falls out of it completely.
plenty of demand out there. still 10-20 parties going through most of the open homes I am visiting and limited stock around.
tailwinds still alive and well.
filthy
Hi filthy. Welcome to ST.
From an affordability perspective, residents currently free up significant amounts of capital when they move into a village so there remains plenty of price-headroom for incoming residence. For example, the current median Auckland house price would need to drop from $1.2million to $900k before a transition into a SUM/RYM retirement unit becomes breakeven. I can't see house prices falling 25%.
But on top of that, and most importantly, elderly people move into a retirement village based on health needs and security, rather than what the housing market is doing.
And further still, demand for SUM/RYM and the likes will be greater than supply for the foreseeable future given NZ's age-demographics. As such, people will take a capital hit, if they have to, on transitioning into a retirement village in NZ.
Based on the above, I believe the property market has no impact at all on SUM/RYM's businesses.
This has been shown to be true when looking at the historical results of these companies compared to what the property market has been doing.
Start of the month and down she goes........ I must follow these patterns and sell at the end of the month and buy in the new month