SUM - Summerset Group

[Bjauck]

Roger,Very happy with what they did and have no complaints on the gain to summerset. I am sure it put 5 years or more on their life's by moving in to Aotea, they had a great time. the 177K to 450K just interesting data is all. We were told they currently have a waiting list of about 50 potential buyers.Have summerset shares already. Been in and out for the last 5 years or so. mum is now in rest home care at enliven after dads passing at 91, unfortunately we had to relocate her to get the level of care now required. She is doing well, staff there great as well. Keeping track of her assets now to manage when subsidies kick in etc.Gunny

A pity that your Mum could not get the care she needs at her Summerset village. However it mostly sounds like a win-win situation - your folks had a great time in their Summerset environment with what can be stressful matters taken care for them. Summerset earned a good return by taking on responsibility and development risk.

I remember back in 2005 many considered house prices were at a peak. Back then, not many would have foreseen the the credit crunch and the extent to which house prices have outstripped growth in incomes since.

[Beagle]

Roger,Very happy with what they did and have no complaints on the gain to summerset. I am sure it put 5 years or more on their life's by moving in to Aotea, they had a great time. the 177K to 450K just interesting data is all. We were told they currently have a waiting list of about 50 potential buyers.Have summerset shares already. Been in and out for the last 5 years or so. mum is now in rest home care at enliven after dads passing at 91, unfortunately we had to relocate her to get the level of care now required. She is doing well, staff there great as well. Keeping track of her assets now to manage when subsidies kick in etc.Gunny

Hi Gunny. I'm very pleased to hear your parents enjoyed their latter years. Thanks for sharing your parents experience.

[couta1]

Unloved stock at the moment, mind you I've never seen such a subdued run up on the Ryman SP, two days before their results announcement, shows you how the sector is being viewed currently by Mr Market.

[skid]

Roger,Very happy with what they did and have no complaints on the gain to summerset. I am sure it put 5 years or more on their life's by moving in to Aotea, they had a great time. the 177K to 450K just interesting data is all. We were told they currently have a waiting list of about 50 potential buyers.Have summerset shares already. Been in and out for the last 5 years or so. mum is now in rest home care at enliven after dads passing at 91, unfortunately we had to relocate her to get the level of care now required. She is doing well, staff there great as well. Keeping track of her assets now to manage when subsidies kick in etc.Gunny

You are very lucky to have enough funds left over to relocate your mother --You could have easily not have. I can understand how this pleases shareholders and I also have tossed around the idea of some shares in SUM...but trying to dress this up to be good for an oldie with limited assets is like trying to put lipstick on a pig imo......thats a heck of a premium for providing a service that is charged for....I can understand why my neighbor is looking to try to get her mum in a church based home. why should all the capital gain go to the institution that already has the purchase price for the unit?

[Bjauck]

You are very lucky to have enough funds left over to relocate your mother --You could have easily not have. I can understand how this pleases shareholders and I also have tossed around the idea of some shares in SUM...but trying to dress this up to be good for an oldie with limited assets is like trying to put lipstick on a pig imo......thats a heck of a premium for providing a service that is charged for....I can understand why my neighbor is looking to try to get her mum in a church based home. why should all the capital gain go to the institution that already has the purchase price for the unit?

In 2005 many thought that the property market was at a peak. Prices could have stagnated were it not for the GFC and the drop in interest rates and the current immigration numbers etc.

[Beagle]

I love the fact that some churches are in a financial position to provide services for the elderly in a not for profit manner but the reality is that this comes from a limited resource base of giving and assets that have been held within national church balance sheets for many decades.

Just like we need a healthy vibrant banking system to provide adequate banking services for all people and businesses we need a healthy vibrant retirement sector so older folks can enjoy a healthy vibrant supportive living environment in their latter years. Last time I checked nobody holds a gun to their head and says they must move into a retirement village but from what I hear the vast majority of people who do, lament the fact that they wish they'd done it earlier.

[percy]

You are very lucky to have enough funds left over to relocate your mother --You could have easily not have. I can understand how this pleases shareholders and I also have tossed around the idea of some shares in SUM...but trying to dress this up to be good for an oldie with limited assets is like trying to put lipstick on a pig imo......thats a heck of a premium for providing a service that is charged for....I can understand why my neighbor is looking to try to get her mum in a church based home. why should all the capital gain go to the institution that already has the purchase price for the unit?

The choice is for each of us to make.
No one is forcing people into SUM villages.
The simple fact is RYM and SUM suit a growing number of people.
You must then ask yourself why?.

[Jonboyz]

The choice is for each of us to make.
No one is forcing people into SUM villages.
The simple fact is RYM and SUM suit a growing number of people.
You must then ask yourself why?.

I'm looking foward to living in a retirement village one day. I'm just too lazy to cook everyday, clean, organise activities. I'd far prefer a SUM or RYM village than somewhere that might bathe me in kerosene and feed me bugs.

[Gunny]

What is interesting about my dad and mum is that they were never rich, in fact the opposite with five kids, one income, average government job for life deal. After managing to put together enough to buy a house (after getting a small inheritance as deposit) a long time ago in their 30's with a 30 year mortgage and after finishing with a very modest home in 2005 they decided to sell up and buy an apartment in summerset off the plans. They sold the house just at the right time (value went down soon after) and got in to summerset with a 100K spare in their bank. Pensions kept things mostly ticking over so when they surrendered still had a 100K in the bank. Could never convince dad to invest it beyond term deposits, being he was very old school. So a really average ma and pa New Zealand story, nothing flash and lived within their means after having it tough most of their lives.

There was no cost in relocating mum to a rest home but that is now costing just over 4K per month on a single pension of about 1500 per month. But this was a requirement of her failing health as she has been assessed to require that level of care, bordering on hospital level care. Great old New Zealand steps in on this when her remaining 277K assets fall to 220K in about 12 months with a subsidy to her pension to cover the costs. So we still have safety nets for our old folks (of which I am not far away from). I wonder if this will hold up with the wave of baby boomers coming both in dollars and space.

my understanding is anyone can get this subsidy after 65 for rest home care provided they have been assessed to that level of care with the only proviso they would need to surrender most of their pension and pay the difference until their assets reach to the current 220K assets. Their are other options if the partner is still alive and in the house still.

It is also interesting that my wife (not Kiwi born) is really keen to consider a retirement home in the future having seen the environment my parents were in with the café for food, activities, no house maintenance and friends around then etc.

Sorry to go on but it is interesting to view this as a shareholder and from my parents perspective as a user. As was pointed out is really is a win-win. There is much much more to this than any loss of potential capital gain on your house.

Gunny

Gunny

[iceman]

Thanks for sharing Gunny. I think your story of your family is a fairly typical situation of folks either already in or considering moving into a retirement home. It is not all about the cost (or losses) for them, security, having professional people on call nearby and camaraderie is all a big part of what they are looking for and get in most retirement homes.
My in laws live in the UK and have failing health. I took them to Ryman's retirement village in Nelson last year and they thought it was wonderful and wish they had options like that in the UK. Unfortunately it appears they don't. We are lucky here in NZ that we have a very successful retirement village industry.