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05-05-2019, 04:07 PM
#7761
Maybe SUM could start renting out some of their apartments they are struggling to sell and the Government could foot some of the bill by paying an accommodation supplement to people's super ?
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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05-05-2019, 07:43 PM
#7762
Increase in Operating Cash Flow hasn't been much the last 2 years
Cash is king they say .... maybe this year will be different
”When investors are euphoric, they are incapable of recognising euphoria itself “
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05-05-2019, 07:44 PM
#7763
I am sure retirement village residents, who paid big money for their units, would just love having a wide diversity of tenants living alongside of them,funded by the Govt..lol.
"No we did not pay $750,000 for our unit."
"We can't afford to pay rent,so the Govt pays."
"Don't know how much it costs the Govt,but we think we should have been given a five bedroom unit ,so the grand children could live with us."
"Bit crowded with five in the spare bedroom,and three in the longe".
Last edited by percy; 05-05-2019 at 07:53 PM.
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05-05-2019, 07:55 PM
#7764
Originally Posted by winner69
Increase in Operating Cash Flow hasn't been much the last 2 years
Cash is king they say .... maybe this year will be different
It's probably too early to say, but whatever, SUM has some lovely chart action going on, bouncing off the 2016 highs and 2018 consolidations before its big run up through June-Oct 2018. Actually, it's definitely too early to say technically, being so far below it's MA's and downtrend lines, but a punter who believes in the FA might see this as the buying opportunity.
Value investing is so scary, bascially defying the golden rules of never buying a downtrend, value investors only ever buy down trends! True contrarians, sticking their convictions up the market, good on them.
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06-05-2019, 08:41 AM
#7765
Originally Posted by Baa_Baa
It's probably too early to say, but whatever, SUM has some lovely chart action going on, bouncing off the 2016 highs and 2018 consolidations before its big run up through June-Oct 2018. Actually, it's definitely too early to say technically, being so far below it's MA's and downtrend lines, but a punter who believes in the FA might see this as the buying opportunity.
Value investing is so scary, bascially defying the golden rules of never buying a downtrend, value investors only ever buy down trends! True contrarians, sticking their convictions up the market, good on them.
Yep great buying opportunity at 576.....if only for no other reason than it’s current P/B multiple has never been lower (see my charts of other day)
Book Value likely to increase about 18% in F19 .....that’ll take share price to 670 odd and if rerated to up to a more realistic P/B of 1.5 that would take share price to 770 early next year.
Price you pay is 576 for 770 of value ...sounds fair enough
Pity Julian brought up that excuse of days to sell increasing market data) because that only caused all that uncertainty. He’s got to learn to be more careful what he says....but then he gave many the opportunity to capture that ‘value’ that’s there
”When investors are euphoric, they are incapable of recognising euphoria itself “
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07-05-2019, 10:34 AM
#7766
Originally Posted by Beagle
Maybe SUM could start renting out some of their apartments they are struggling to sell and the Government could foot some of the bill by paying an accommodation supplement to people's super ?
I think there is room for the retirement village operators to offer units for rental. There would be group of people who may not necessarily be able to afford, or perhaps want to make the outlay for an ora but who could pay rent out of retirement savings and the sale of a cheaper house.
These renters would be probably be long-term (comparatively) and trustworthy, and a large village would have the infrastructure to administer these tenanted properties.
At the bottom of the wealth league, there will always be a segment of retirees who have minimal assets and savings. Often, but not always, this is because off ill-health or misfortune, They should always be taken care of by the social welfare safety net.
Last edited by Bjauck; 07-05-2019 at 10:40 AM.
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07-05-2019, 10:54 AM
#7767
Originally Posted by Bjauck
I think there is room for the retirement village operators to offer units for rental. There would be group of people who may not necessarily be able to afford, or perhaps want to make the outlay for an ora but who could pay rent out of retirement savings and the sale of a cheaper house.
These renters would be probably be long-term (comparatively) and trustworthy, and a large village would have the infrastructure to administer these tenanted properties.
At the bottom of the wealth league, there will always be a segment of retirees who have minimal assets and savings. Often, but not always, this is because off ill-health or misfortune, They should always be taken care of by the social welfare safety net.
I guess you'd just work it that they pay a lower purchase for the ORA but a higher monthly fee. If it's a choice between that and having a unit empty for years, then yes I can see the argument being reasonably compelling. Time was that local councils had retirement units that they offered out to the low income community, but a lot have been sold off now (at least in Auckland, probably smaller provincial councils still do it).
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07-05-2019, 02:43 PM
#7768
Originally Posted by Bjauck
I think there is room for the retirement village operators to offer units for rental. There would be group of people who may not necessarily be able to afford, or perhaps want to make the outlay for an ora but who could pay rent out of retirement savings and the sale of a cheaper house.
These renters would be probably be long-term (comparatively) and trustworthy, and a large village would have the infrastructure to administer these tenanted properties....
Renting and purchasing are very very different propositions. Rentals are subject to vastly differing laws and regs, and more rules coming. Can of worms.
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07-05-2019, 03:44 PM
#7769
Yes, it's a nice idea but I can't see the retirement village companies making such a drastic change to their business model. More likely, if sales slow is that development also slows and allows that big wave of retirees to catch up.
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07-05-2019, 04:40 PM
#7770
Originally Posted by macduffy
Yes, it's a nice idea but I can't see the retirement village companies making such a drastic change to their business model. More likely, if sales slow is that development also slows and allows that big wave of retirees to catch up.
It won’t be a gentle wave it will be a tsunami. Lots of elderly will need to go to villages and in some cases the children will decide for them (in case they can’t make that choice properly for themselves). In the next 3-5 years we will see the onslaught
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