SUM - Summerset Group

[minimoke]

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.

Possibly because they get a whole lot more in a retirement village house then they might in an average house in a surrounding area.

This is what you get in one of SUMs places not far from me.

"Alpine View Lifestyle Village is designed to look like a new residential subdivision not a traditional retirement village which means all our houses are architecturally designed, distinct, different and standalone. They have been discretely designed for sun and privacy.



There are different architectural features for our Independent living houses and if you are in early and purchase the occupational rights while the house is under construction, then you can have a choice as to the configuration.


The house sizes range from 124m2 to 165m2 and feature two or three double bedrooms with walk -in wardrobes, (single or double) garage, a tiled ensuite, a visitor’s toilet, and a tiled floor in both the entrance and kitchen.


There are French doors in both the living and dining areas – providing indoor/outdoor living and a 2.7-metre-high ceiling height provides each room with a greater sense of space and light.


The kitchen features stainless steel appliances, including: a wall oven, induction cook top, waste disposal unit and dishwasher drawer.


For energy saving the houses have solar heating, LED lighting, double glazing and tinted windows, as well as a heat pump/air conditioning unit and under floor heating in the bathroom."

Plus

"At the heart of the village is Alpine View’s Lodge. Here you can take in a movie at the Roxy Movie Theatre, watch the rugby in the Stag’s Head Bar, dine in the Oxford Restaurant, catch up with friends in Ginger’s Café, enjoy the heated pool, workout in the gym or participate in one of the many regular events organised by the activities coordinators.


Also within the lodge is a hair salon, medical centre, chapel and library."

[Beagle]

Sounds really, really nice minimoke. Julian Cook made the point at last year's annual meeting, (discussed after the meeting) that SUM's units are typically significantly larger than their competition.

[winner69]

More importantly whats going to happen to the share price this week

Irrespective of whats been discussed Summerset et all will continue to build new villages and make heaps of money for shareholders

No worries ...you guys think too much

[dobby41]

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.

As little as 50% of the average house in the suburb.
That means as little as 50% of the people probably can't afford them as their house will be worth less than the average. (by definition).

People who do move typically release a lot of capital because those who wouldn't don't move (can't afford to).

[dobby41]

Possibly because they get a whole lot more in a retirement village house then they might in an average house in a surrounding area.

I'm not sure that the Alpine View Lifestyle Village is 'typical'.
I couldn't see any pricing - are they priced at the 'average' for the area?

[couta1]

More importantly whats going to happen to the share price this week

Irrespective of whats been discussed Summerset et all will continue to build new villages and make heaps of money for shareholders

No worries ...you guys think too much

Probably fully priced mate until Ryman price moves near $13 aye. Agree re thinking too much, Gutometer a far better investing tool than an overactive brain.

[minimoke]

I'm not sure that the Alpine View Lifestyle Village is 'typical'.
I couldn't see any pricing - are they priced at the 'average' for the area?

I cant comment on whether this is typical or not - All I am concerned about is that SUM are meeting market demand. (if this is what they have planned form Napier I might need to look at moving)

Also no idea of price. Waitikiri has some quite posh housing nearby. But also north New Brighton which isn't so flash. And Marshland (which is now called Prestons for obvious reasons) and not for from where I shovelled truck loads of silt post EQ's

[macduffy]

As little as 50% of the average house in the suburb.
That means as little as 50% of the people probably can't afford them as their house will be worth less than the average. (by definition).

People who do move typically release a lot of capital because those who wouldn't don't move (can't afford to).

i think that Beagle meant that the cost of a one bedroom unit was about 50% of the average sale price of housing in the area, not the 50% average sale price!

[dobby41]

i think that Beagle meant that the cost of a one bedroom unit was about 50% of the average sale price of housing in the area, not the 50% average sale price!

Good point - I'm not sure that is true

[Beagle]

As little as 50% of the average house in the suburb.
That means as little as 50% of the people probably can't afford them as their house will be worth less than the average. (by definition).

People who do move typically release a lot of capital because those who wouldn't don't move (can't afford to).

I an not sure you get it but I will give up trying to explain it after this post. SUM are not trying to be all things to all people. If they were I probably wouldn't want to retire into one of their villages for the reasons Percy outlined. I visited the Hobsonville village last year and was very impressed with the very high caliber of the facilities and the very nice people I met there. Not everyone can afford to retire there, that's a given but its not SUM's job to fix social problems.