Anyone selling their house in Melbourne should be able to buy TWO [or more] Ryman units.
PS Craigs research today have upgraded OCA to BUY with a target price of $1.24.
Printable View
Sorry Percy I find that very difficult to accept at face value. Perhaps you could provide some evidence to support your contention such as the average price of a RYM unit in the suburb in question and the average price of a house in said suburb. The normal ratio is about 75% unit to house and if the value of the house has declined 10% the margin is getting thin for said discretionary choice.
This was certainly not the case for my parents nine years ago with the RYM facility at Orewa. The price of a nice 2 bedroom unit was almost exactly the same as their stand alone two bedroom home. To suggest that RYM's units are dirt cheap as a blanket statement compared to the surrounding suburbs is not something I have seen as being a realistic claim.
Good that Craigs can see the wood for the trees. What's their rating on RYM and SUM if you don't mind sharing ?
is this the end of oca , sum rym arv and met profit grab , probably half there stock prices if it gain traction i reckon
A new retirement village operator is promising residents capital gain on their units
https://www.stuff.co.nz/business/110...on-their-units
LOL Halve their value...more Bull from the bear.
The devil will be in the detail. You can't get something for nothing. I would expect their weekly fees will be a lot higher...people have to pay for the services one way or the other. I bet the directors of OCA, RYM, SUM ARV and MET are quaking in their boots lol
Another VHP Vital Healthcare Property Trust type "management control" fiasco in the making.
Good business angle when we're entering era of static or dropping prices
Yeap...I suspect some people who have a short attention span and didn't even make it through the whole article to read the last bit
"But 90 per cent of older people choosing a retirement village - about 40,000 people - did so for the bundle of services provided, especially access to health care which provided peace of mind. For a certain section of older people the capital gain would be a drawcard".
They will be a small niche player and I predict they will charge like wounded bulls for very limited services and activities because if they're not getting their profit through capital gains they're getting it though milking oldies for all they're worth with weekly management fees.
Not to mention that capital gain is of no use to the purchaser when they are pushing up daisies, might as well enjoy the full package with their hard earned dosh rather than leaving it to some entitled cupcake.