Retirement village operators

[Bjauck]

...

New Zealand certainly has some very wealthy families and no doubt quietly engage staff as required.

Many people would much prefer to stay in their own well-loved homes if possible. However it is very expensive to hire groundkeepers, caretakers and nursing staff especially for round the clock needs. Super-Wealthy families have always been able to do this. Recent years have seen greater divergence of wealth as land ownership and inheritances build up a concentration of wealthy families.

Without underlying change post-pandemic, no doubt we will continue to further head back to a Victorian-era situation where more of the wealthier wealthy will be able to stay in their homes and estates attended to by live-in nurses and staff whereas the rest will need to move in with children or into care facilities struggling to survive with cut-to-the-bones government or charitable support.

A further drop in the level of residential land ownership could have a negative impact on he growth of the numbers of new sales based on the ORA system of retirement village occupation?

[Brain]

This could well be a good business opportunity for someone matching caregivers to the people who need this sort of care. When you consider the loss of capital in a care suite or retirement apartment of say 30% in the first 3 years the economics seem To be quite compelling.

[bull....]

The REINZ national median selling price dropped from $680,000 in April to $620,000 in May

https://www.interest.co.nz/property/...ril-620000-may

[Beagle]

The REINZ House Price Index, which adjusts for differences in the mix of properties sold and is considered a more reliable indicator of the movement in prices than either median or averages, declined by 0.5% in May compared to April and was down -1.6% compared to three months ago.

^^ Extract from the link bull posted.

Not much of a correction from the very high level's prevailing before Covid 19.

[traineeinvestor]

^^ Extract from the link bull posted.

Not much of a correction from the very high level's prevailing before Covid 19.

Not surprising – the population hasn't gone anywhere, interest rates have gone even lower, banks have allowed deferment and full the effects of the recession on incomes have yet to bite. Not a lot of pressure on people to sell at this time.

[Panda-NZ-]

If corona becomes more common I can see these being a risk. spread may be inevitable in every country. I suppose it comes down to the terms of the contracts and MET has the court case at least.

wavering slightly on my oca holdings.. :\

[bull....]

Aged care pressures are mounting


According to the latest Stewart Brown financial performance survey, 60 per cent of aged care homes recorded an operating loss for the nine months to March 20. The same period also brought the first significant decrease in occupancy levels for at least eight years.

https://www.afr.com/wealth/personal-...0200629-p557b7

[bull....]

the biggest risk to the sector is covid and a timely reminder how 1 infected person can lead to a full blown out break ie melbourne

Private nursing homes become the centre of Victorian COVID outbreak

https://www.afr.com/politics/federal...0200727-p55fte

[Bjauck]

Aged care pressures are mounting


According to the latest Stewart Brown financial performance survey, 60 per cent of aged care homes recorded an operating loss for the nine months to March 20. The same period also brought the first significant decrease in occupancy levels for at least eight years.

https://www.afr.com/wealth/personal-...0200629-p557b7

Where are those, who have been assessed as needing care, being looked after if it is not in care homes? Are they receiving care in their own homes - which of course is more expensive and often less suitable?

Is this a story about the Australian situation that perhaps cannot be extrapolated in toto to the NZ situation.

Obviously Covid is an ongoing issue that cannot be ignored by many market sectors.

[trader_jackson]

the biggest risk to the sector is covid and a timely reminder how 1 infected person can lead to a full blown out break ie melbourne

Private nursing homes become the centre of Victorian COVID outbreak


https://www.afr.com/politics/federal...0200727-p55fte

I'm not sure how many times people have to say this to you on this thread, but the Australian care situation is very different to the nz situation in many different ways.

That is not to say Covid is not an issue in NZ - it has certainly impacted virtually everyone in some way, shape or form. Reality is, in NZ covid only entered 1 rest home - with tragic consequences - but in Australia and Melbourne in particular, they never really stomped it out (as it has been done in NZ) - so not only is covid not in rest homes in NZ currently, combined with there rigorous processes in place, but we (theoretically) don't even have that '1 person' to be able to give covid a chance... Might as well start comparing apple and oranges - it would be just as relevant as these types of posts (about Australian care and various issues in it, even prior to covid).