LOL, Love it Iceman!!!
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LOL, Love it Iceman!!!
https://www.stuff.co.nz/national/hea...rement-village
Warning about the financial 'fish-hooks' of moving into a retirement village
applies to all retirement villages
Interesting that the article talks about fish hooks, pitfalls and losses. And not much about that retirees entering independent units in these villages, and paying big money for them are compos mentis and have had their own legal advice. People don't usually retire one day and their brains turn to mush the next day.
The issues appeared to be with the offspring not getting "their share" rather than retirees suffering.
Doesn't hurt to read the fine print all the same.
Agreed, our brains go mushy well before retirement.
Speaking of positivity on this thread, i was thinking about the latest announcement recently. Specifically in the way we perceive things differently depending on how they are presented to us.
The announcement said that new sales had dropped, and resales had benefitted from unit growth. Overall sales were down compared to last year.
Didnt feel good to read that. Let's take the same info and put it another way:
Number of units have increased. Resales have increased in line with that growth. A load of extra units have been sold, growing the business just under the record rate of growth last year which saw a 50% increase in SP.
Suddenly doesn't sound so bad.
On a different note, do you think im wrong to suggest that the main driver for the current SP is ursaphobia? Or are we waiting for the next announcement to rerate this thing?
Personly i was sitting on ~55% cash but then i bought a business so I'm now on about 30% cash. Kinda wish I had more in case i see a bear.
That "resales have benefitted from unit growth" puzzles me somewhat. Shouldn't resales be constrained, rather than benefitted if there is more choice from new units?
:confused:
Post #6886 - Been mulling that over this past week or so. No denying that sales have under-performed new build since Q4 last year. Julian Cook is confident of a big Q4 and building 450 units.
I am not especially confident they will sell any more than the ~ 380 they sold last year even with a big Q4. Why are new sales an issue ? We hear the much talked about multi level construction being an issue but one wonders a little seeing as their development margin has expanded to 33% whether they're simply asking too much for some of these new units ?
One could also ponder whether with the royal commission of enquiry going on in Australia and some real negative momentum in Melbourne and Sydney real estate prices whether this is the right time to be spending serious money looking at expanding into Australia ?
macduffy - resales benefiting from the fact that as whole the company has more existing stock to resell, (450 new units built last year). New sales continue to underwhelm but according to Julian Cook its all going to be solved in Q4....we'll see.
Shares have enjoyed a big run this year up 50% from $5.00 in December 2017 against a backdrop of sales underperforming since then. I took some money off the table regarding SUM today. Not because its a bad company fundamentally per se but because I see OCA as a better opportunity. I do note that SUM broke down through its 100 day moving average today so from a TA perspective that's not good. I think RYM are extremely overpriced at the current price and SUM probably fair value but questions about SUM's ability to push through consenting on difficult sites, first Boulcott and now issues with ST John's have me scratching my head a bit.
Why on earth would they propose a 7 level retirement village at St John's when the maximum height there is 3 level's ? In light of OCA's brilliant track record of obtaining consents, see post #2022 on OCA thread, I have been reflecting upon SUM's chequered track record a little lately.
Sold out of SUM today also. Was a nice ride from $4.70
Perhaps I'm looking through the wrong end of the telescope - but if it was a car dealer, having a sudden intake of new stock wouldn't benefit sales of used vehicles. I think your suspicion that the new units are overpriced, at least in comparison with existing units, is more likely the explanation.Quote:
macduffy - resales benefiting from the fact that as whole the company has more existing stock to resell, (450 new units built last year). New sales continue to underwhelm but according to Julian Cook its all going to be solved in Q4....we'll see.