Best retirement village stock

[crighton100]

Be wary of the retirement sector.I live in a metlife care village & we have most of the above facilities.The problem is you are surrounded by a load of old fuddies,who are in all stages of going to the dogs,so these places are not for everyone.The big problem at the moment is the property market,as it has been going up & up the villages have done very well [our unit cost $350000 9 years ago & sell currently for $620 plus & the weekly rate you have to pay up from $130pw to $150pw,guaranteed for life].Now people wanting to come in are finding it hard to sell their houses as the prices have held or slightly dropped,all you need now is a national drop in house prices & these village operators are going to be in a bit of trouble.Just thought you might like a perspective from a person in a village [I would not buy into this sector as I think they are over priced & a bit risky].

[Investor]

Be wary of the retirement sector.I live in a metlife care village & we have most of the above facilities.The problem is you are surrounded by a load of old fuddies,who are in all stages of going to the dogs,so these places are not for everyone.The big problem at the moment is the property market,as it has been going up & up the villages have done very well [our unit cost $350000 9 years ago & sell currently for $620 plus & the weekly rate you have to pay up from $130pw to $150pw,guaranteed for life].Now people wanting to come in are finding it hard to sell their houses as the prices have held or slightly dropped,all you need now is a national drop in house prices & these village operators are going to be in a bit of trouble.Just thought you might like a perspective from a person in a village [I would not buy into this sector as I think they are over priced & a bit risky].

It's common in New Zealand for retirement homes to offer buyers an option to purchase the house and have the right to sell it at cost or pay extra and have full sale rights. Property is a large part of retirement village business and they will still profit if house prices go down. I have a family member who signed away would of now been a $700k capital gain.

[Beagle]

See my comment today in the SUM thread. This is a company with a well proven track record since listing over 5 years ago of growing underlying earnings at a compound average growth rate of 48% and is set to potentially exceed that growth rate this year ! I put a lot of stock in companies with a proven record of growth as opposed to one-off forecast of growth although I do also hold OCA as a diversification strategy and because if they can achieve their forecast growth their underlying PE is cheap for this sector at 12.2.

[bull....]

Be wary of the retirement sector.I live in a metlife care village & we have most of the above facilities.The problem is you are surrounded by a load of old fuddies,who are in all stages of going to the dogs,so these places are not for everyone.The big problem at the moment is the property market,as it has been going up & up the villages have done very well [our unit cost $350000 9 years ago & sell currently for $620 plus & the weekly rate you have to pay up from $130pw to $150pw,guaranteed for life].Now people wanting to come in are finding it hard to sell their houses as the prices have held or slightly dropped,all you need now is a national drop in house prices & these village operators are going to be in a bit of trouble.Just thought you might like a perspective from a person in a village [I would not buy into this sector as I think they are over priced & a bit risky].

well said , i dont live in a retirement village yet but have talked to people in villages with mixed results so as you say go in with your eyes wide open

[Fatboyj]

+1 for OCA. They currently have the best retirement village ad on tv playing to the tune of Magic Moments and kittens.

[crighton100]

Just to clarify what happens in most retirement villages.When you buy in [take us ,at $350000.00] you lose 10% a year for 3 years,so after 3 years or in our case 9 years] if you move out or peg it,they only pay you out or your estate $245000.00,less any costs above fair wear & tear [such as if you have a heat pump put in & the next buyer do not want it,you get charged for it to be ripped out & the walls put back to normal].So not only have you missed out on capital gains,you have lost a lot of your original input.They also have a clause where they can continue charging the weekly fee for up to 6 months,while they prepare the unit for resale & find a buyer.This is what happens in nearly all villages,there are a few exceptions,but they are not the norm.

[BlackPeter]

Just to clarify what happens in most retirement villages.When you buy in [take us ,at $350000.00] you lose 10% a year for 3 years,so after 3 years or in our case 9 years] if you move out or peg it,they only pay you out or your estate $245000.00,less any costs above fair wear & tear [such as if you have a heat pump put in & the next buyer do not want it,you get charged for it to be ripped out & the walls put back to normal].So not only have you missed out on capital gains,you have lost a lot of your original input.They also have a clause where they can continue charging the weekly fee for up to 6 months,while they prepare the unit for resale & find a buyer.This is what happens in nearly all villages,there are a few exceptions,but they are not the norm.

Sure, this are the rules. Somehow residents need to pay for all the luxury on offer in the DMF retirement homes. None of these costs should come as a surprise to you - the DMF is the exact reason that they are able to offer you such low weekly rates. Didn't you read the contract before you signed it?

I am not quite sure what you are complaining about - do you expect private companies (and their shareholders) to not just house you and care for you, but provide as well for bowling, sauna, swimming pool, fitness club and other amenities without charging you for these things? Who do you think should pay for these amenities and services if you as a user do not like to ...?

Talk about eating your cake and keeping it ...

[percy]

Sure, this are the rules. Somehow residents need to pay for all the luxury on offer in the DMF retirement homes. None of these costs should come as a surprise to you - the DMF is the exact reason that they are able to offer you such low weekly rates. Didn't you read the contract before you signed it?

I am not quite sure what you are complaining about - do you expect private companies (and their shareholders) to not just house you and care for you, but provide as well for bowling, sauna, swimming pool, fitness club and other amenities without charging you for these things? Who do you think should pay for these amenities and services if you as a user do not like to ...?

Talk about eating your cake and keeping it ...

Totally agree.
Most people understand the mechanicisms of "right to occupy" compared to "ownership" before they sign up.
I will be entering a retirement village in the not too distant future, for lifestyle reasons,not finnancial.

[Beagle]

Totally agree.
Most people understand the mechanicisms of "right to occupy" compared to "ownership" before they sign up.
I will be entering a retirement village in the not too distant future, for lifestyle reasons,not finnancial.

Smart move Percy. Average entry age for SUM is now 79. You get best value from this supportive caring environment with all the facilities by moving in a lot earlier than that.
Mum in her retirement village reports consistently hearing words to this effect from new incoming residents, "Wow, what a great place, I wish I'd moved in years ago".
Back in the day at the Peninsula club where she is you could move in as early as 55 and some people have enjoyed having everything taken care of for the last 30 years, (its now one of N.Z.'s oldest retirement villages, (was originally a holiday timeshare resort. She as a wonderful north facing stand alone 2 bedroom condominium of just over 100 square meters with its own north facing sunroom and of course all the community facilities including swimming pool, spa, bowling green library e.t.c.e.t.c.
Fees are now fixed for life at $630 per month which covers everything and seem reasonable to me.

[bull....]

do any of these villages provide personal maid services?