In terms of gross div yield plus capital appreciation - yes.
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According to the Herald article this morning, house values up 9.7% Nationwide on average over the last year and a normalising of Auckland values (Not a bad thing) I see nothing concrete that will have any affect on SUM's continued growth or an elderly persons ability to sell their house and move into a retirement unit. Buy the shares cheap while Mr Market continues to throw a hissy fit.
Bonds lower cost of capital than equity
That's good
Agree 100%. Some people have forgotten that of SUM"s present 21 villages only 4 are in Auckland. East Auckland house prices which even I admit are outrageous fell a "whopping" 1.1% in recent months while other parts of Auckland's market are still increasing...anything but a dramatic downturn I would have thought especially at a National level. I noted in the Government budget the other day that Treasury is still expecting national house price growth of over 7% in the year ahead ! I will start adding to my position shortly if the price continues to decline as the long term the demographic tailwinds make this well managed company trading on its lowest ever forward PE, (even lower than the market forward PE average), a most compelling long term investment proposition.
I agree with all of that, Roger. Now, let's just drop the subject before we set off a premature buying surge in SUM shares!
:cool:
We've already had that:D
I have been feeling very bearish lately about the global situ hence my cautious thinking about SUM . Hope I'm wrong about the above and thanks for all the info and opinions guys. I do remain well placed on the side watching the Macro situ and SUM.