Retirement village operators

[Snoopy]

Any guesses on how many or few participants will jump at this ?

I wonder how many prospectives will still be intent on sitting on sidelines watching
perhaps looking for RE values to reduce further ?

Further employment shakeouts in another round of business rationalising in my book would be on the cards
with opening things up & businesses adjust scaling things to their new economic landscape on the other side..

I think reducing the deposit required on a house to potentially zero will have its biggest effect on those recent purchasers who had only 10% equity. That equity could be wiped out in a property market correction. So this move will give those buyers a fighting chance of staying in their own homes.

I say a 'fighting chance' because it depends on those property owners keeping their jobs as well....

SNOOPY

[bull....]

I think all retirement village staff , nurses should get a pay rise in this environment. a corona allowance someone should start a petition

[bull....]

pay staff more

[Snoopy]

pay staff more

The problem is Bull, apart from a very few very well off citizens (not enough to provide a stable funding base for a retirement village), effectively the fee income of a retirement village is determined by the government. This funding is insufficient to fund today's wages, let alone provide increases. Most villages find ways to subsidise their care unit worker wages directly or indirectly via villa occupation right sales. But it is government policy that is what constrains care worker wages in the end.

SNOOPY

[bull....]

The problem is Bull, apart from a very few very well off citizens (not enough to provide a stable funding base for a retirement village), effectively the fee income of a retirement village is determined by the government.

retirement villages have been reporting millions in profit they can easily pay staff a temporary corona allowance. Many companies are showing there social side during these unusual times

[Snoopy]

retirement villages have been reporting millions in profit they can easily pay staff a temporary corona allowance. Many companies are showing their social side during these unusual times

1/ Don't lump all retirement villages together.
2/ Even those big listed retirement companies, probably the best placed, rarely offer imputed dividends. That shows that very few of the large reported profits are 'cash profits' from operations. You need cashflow to pay higher wages.

SNOOPY

[trader_jackson]

retirement villages have been reporting millions in profit they can easily pay staff a temporary corona allowance. Many companies are showing there social side during these unusual times

I don't know of many companies who are paying people more during these times, except maybe supermarket stackers - the social side many companies are showing I would think is not a pay rise, but rather just trying to keep someone in a job, and probably cutting their pay, hours or both by 20% or so.

[bull....]

I don't know of many companies who are paying people more during these times, except maybe supermarket stackers - the social side many companies are showing I would think is not a pay rise, but rather just trying to keep someone in a job, and probably cutting their pay, hours or both by 20% or so.

to get people to do this job in the first place now is going to be difficult , i was watching news last night workers are very concerned for there health in these jobs. health vrs money ? hard decision for many and they are probably being asked to do more work than normal due to extra work loads etc i think a temporary corona allowance would go down well with the public relations side of things

[bull....]

1/ Don't lump all retirement villages together.
2/ Even those big listed retirement companies, probably the best placed, rarely offer imputed dividends. That shows that very few of the large reported profits are 'cash profits' from operations. You need cashflow to pay higher wages.

SNOOPY

thats right mostly capital gains on sale recycled into more development. going forward less development might happen due to current developments being not as productive and property taking longer to sell therefore they might sit on more cash to see how things play out so they can easy afford it

[macduffy]

thats right mostly capital gains on sale recycled into more development. going forward less development might happen due to current developments being not as productive and property taking longer to sell therefore they might sit on more cash to see how things play out so they can easy afford it

What strange logic! Do less business, make less profit, therefore can easily afford to pay staff more? Only the govt can manage that - with taxpayers money or by borrowing. That's where the plea for higher wages should be directed.