SUM - Summerset Group

[percy]

I'd be interested to know if there has been an approach from govt on mandatory affordability units.

I have grave doubts about affordable units.
Recently a retired ChCh couple brought a 2 bedroom unit, in a small new development.Downsized for their retirement.The developer then sold some units to Housing NZ, who put in "social misfits".Swearing,fights,abuse is the norm from these people.The value of their unit has decreased,and is really unsaleable.
I know the reason I will buy a retirement village unit is for security and safety.Last neighbour I would want is a "social misfit" in an affordable unit.
Should the Govt want affordable retirement units, they are best to build them themselves,and remember the present retirement village models are providing NZ retirees with plenty of choice,and saving the Govt having to provide them.
Where would the Govt be without ARV, OCA,MET,RYM and SUM.?

[iceman]

I have grave doubts about affordable units.
Recently a retired ChCh couple brought a 2 bedroom unit, in a small new development.Downsized for their retirement.The developer then sold some units to Housing NZ, who put in "social misfits".Swearing,fights,abuse is the norm from these people.
I know the reason I will buy a retirement village is for security and safety.Last neighbour I would want is a "social misfit" in an affordable unit.
Should the Govt want affordable retirement units, they are best to build them themselves,and remember the present retirement village models are providing NZ retirees with plenty of choice,and saving the Govt having to provide them.
Where would the Govt be without ARV, OCA,MET,RYM and SUM.?

Totally agree Percy and that's why I hope they'll tell the Minister in no uncertain terms they are not interested in this

[artemis]

I have grave doubts about affordable units.
Recently a retired ChCh couple brought a 2 bedroom unit, in a small new development.Downsized for their retirement.The developer then sold some units to Housing NZ, who put in "social misfits".Swearing,fights,abuse is the norm from these people.
I know the reason I will buy a retirement village is for security and safety.Last neighbour I would want is a "social misfit" in an affordable unit.
Should the Govt want affordable retirement units, they are best to build them themselves,and remember the present retirement village models are providing NZ retirees with plenty of choice,and saving the Govt having to provide them.
Where would the Govt be without ARV, OCA,MET,RYM and SUM.?

Agree, and I have similar doubt about the Unitec development with (initially) 20% social housing. Which % could rise a lot if there are not enough sales and developers have to be paid out. Vicious circle right there.

Social housing tenants have more than average issues.

[minimoke]

Agree, and I have similar doubt about the Unitec development with (initially) 20% social housing. Which % could rise a lot if there are not enough sales and developers have to be paid out. Vicious circle right there.

Social housing tenants have more than average issues.

The advantage with providing social housing for social misfits is that it devalues neighbouring properties which make them affordable.

[mondograss]

You guys have actually been to Mt Albert right? It's not what you'd call a wealthy area.

[mfd]

Agree, and I have similar doubt about the Unitec development with (initially) 20% social housing. Which % could rise a lot if there are not enough sales and developers have to be paid out. Vicious circle right there.

Social housing tenants have more than average issues.

Mixed developments are not unusual in the UK, for example my parent's street is detached 3-4 bed houses and one street over is blocks of council flats. They've been there over 30 years without issue.

[Beagle]

Pretty sad if you've got into your late seventies and can't put $400K together from the sale of a home or other investments to afford a modest unit in one of SUM's villages.
SUM and other retirement village operators already provide some very reasonably priced retirement options.
If the Government want to lower the bar even further they should make their own alternative arrangements in my opinion.

[dobby41]

SUM and other retirement village operators already provide some very reasonably priced retirement options.
If the Government want to lower the bar even further they should make their own alternative arrangements in my opinion.

I believe that prices are set at around the average for the area (ie they aren't cost +) so there will be a large number of people who, when they sell their house, wouldn't be able to afford a village unit.

[BlackPeter]

I believe that prices are set at around the average for the area (ie they aren't cost +) so there will be a large number of people who, when they sell their house, wouldn't be able to afford a village unit.

What an amazing opportunity than for our Labor government to demonstrate that they can build cheaper units and make money with it. They even could reduce the overall tax burden thanks to the fat profits they would make building cheaper houses and units.

Just wondering why they didn't started yet? Ah right, they know everything better but can't do anything ... talk is cheap.

[Beagle]

I believe that prices are set at around the average for the area (ie they aren't cost +) so there will be a large number of people who, when they sell their house, wouldn't be able to afford a village unit.

Summerset don't have a fixed pricing formula for setting prices but based on my knowledge of the company I can tell you that their average unit price is approximately 75% of the surrounding area and this is roughly how RYM price their units as well. Obviously if you want a premium waterfront 3 bedroom home in Hobsonville Auckland for instance you'll need to have made provision for that with your retirement planning or have sold down a similar premium home. Most of their villages contain a wide variety of living options with prices for a standard one bedroom apartment being perhaps as little as 50% of your average home in that suburb whereas in the above example the waterfront home might be as much as 150% of the average for the suburb.

People moving into a SUM village typically free-up a significant amount of capital from the sale of their home to enjoy in their retirement years and work on their bucket list. This freeing up of capital is one of the most attractive aspects to moving into a village.