SUM - Summerset Group

[Goldstein]

Interesting that after the OCR rise, the sector is a little flat today. Regardless of whether or not the heat coming out of the housing market will affect the demand for units, it's possible that quite a few investors preceive it will.

[skid]

Leica may I ask if the one you had the struggle in was a Sum or Rym complex,the reason I ask is I know a few sales reps working in these villages personally and know at times it can be a struggle to sell the smaller serviced apartments but not the standard sized ones or cottages,cheers

Still patiently waiting for that research info you promised Couta

[macduffy]

Interesting that after the OCR rise, the sector is a little flat today. Regardless of whether or not the heat coming out of the housing market will affect the demand for units, it's possible that quite a few investors preceive it will.

I wouldn't read too much into the OCR move which was widely picked by the market. More likely, the sector is following the NZ market down - which is reacting to the fall on the US markets overnight.

I hold Sum - and RYM - and MET.

[Goldstein]

Wow, yes, quite a bit or red on the world markets. Just caught up with the news around the place. I'm out of the trading game at the moment as too busy with work.

[couta1]

Still patiently waiting for that research info you promised Couta

Will pm you sometime during the weekend Skid

[winner69]

Some if you still discount the risk that one day the posers to be might possibly intervene to cap the 'excessive' profits being ma by 'greedy' retirement village operators

Today's paper
http://www.nzherald.co.nz/nz/news/ar...ectid=11220355

Already our fellow sharetrader craic is up in arms and belg has even made comment. See the If National Wins thread

Maybe, just maybe, a revolution is starting.

A debate that in the current environment nobody can win ...corporates driving excessive profits for greedy shareholders v some sort of moral obligation to the community and society.

[Jasemc]

every now and again the same argument is raised. Fact is you don't have to go into a village live with your family and see how long it takes for them to move you into retirement home for free? If they ever put a cap on then the government had better start building cause the private wont or not as fast. Supply and demand and choice. Sounds like a greens policy

[ratkin]

Herald makes the villages sound terrible.
Interesting that its usually the children of the residents that complain. Worried about their inheritence no doubt, if they cared that much the old dears wouldnt need to go into a home in the first place.
Main issue seems to be not so much the fees but the companies hanging on to 20-30% of the unit costs when they die/leave

Govt unlikely to do much about it though , would be a major headache if the state had to provide the services themsellves

[BlackPeter]

Some if you still discount the risk that one day the posers to be might possibly intervene to cap the 'excessive' profits being ma by 'greedy' retirement village operators

Today's paper
http://www.nzherald.co.nz/nz/news/ar...ectid=11220355

Already our fellow sharetrader craic is up in arms and belg has even made comment. See the If National Wins thread

Maybe, just maybe, a revolution is starting.

A debate that in the current environment nobody can win ...corporates driving excessive profits for greedy shareholders v some sort of moral obligation to the community and society.

Looks like an opportunity for us share holders to encourage the management working for us to provide fair conditions to the elderly. Long term it is not normally the most greedy who prevails, but the one who offers win-win deals (i.e. good for the shareholder as well as for the customer).

On the other hand - the article doesn't really describe unfair practises - it looks like the conditions have been clearly set out in the beginning and the apartments have been occupied on a willing (and informed) buyer, willing seller basis. If the occupiers would have wanted outstanding capital returns, than they should have invested their money in retirement village shares instead of in occupancy rights.

Sounds a little bit like the people buying a cheap section next to a state highway (or airport) and than spending their time in complaining about the traffic noise.

There will always be greedy operators as well as greedy occupants (or their greedy heirs) who want to have their cake and eat it too. I am however not sure whether I expect a revolution - more likely is that long term in our free market the operators with the better conditions will prevail. As well - maybe an opportunity for Labour to campaign for state run retirement villages and for Winston to campaign for "Kiwi"village - competition is good for the market, bring it on! Competition will sort the conditions out over time, but what will stay is human greed!

[Bjauck]

Some if you still discount the risk that one day the posers to be might possibly intervene to cap the 'excessive' profits being ma by 'greedy' retirement village operators

Today's paper
http://www.nzherald.co.nz/nz/news/ar...ectid=11220355

Already our fellow sharetrader craic is up in arms and belg has even made comment. See the If National Wins thread

Maybe, just maybe, a revolution is starting.

A debate that in the current environment nobody can win ...corporates driving excessive profits for greedy shareholders v some sort of moral obligation to the community and society.

A major part of the criticism has stemmed from the fact that residents do not benefit from the great appreciation in land values we have had recently. SUM et al. pocket that for taking on the commercial risk in developing the villages (did the article mention that?). SUM is also taking on the risk (increasing daily!) that land values will not always go up. Will there be articles from the same sources suggesting that residents share in the losses? MET has that covered - but not RYM or SUM.

There is protection in place for residents...they need to have a lawyer go through the contract with them. If they cannot understand what they are signing and the explanation, perhaps they could seek to annul the contract by way of the exception for mistake or lacking intention to enter a contractual obligation. Otherwise perhaps another layer of protection should be added to ensure that those signing a licence agreement understand what the terms entail. However the existing villages contracts seem to be popular - judging from the increasing numbers entering the villages.