SUM - Summerset Group

[Bjauck]

Panic step in....

https://www.stuff.co.nz/business/pro...e-prices-stall

Every twist and turn in the housing market is fodder for a lead item in the NZH. Many NZH readers would have the vast majority of their nest eggs wrapped up in the equity of their home, so I am guessing these housing articles with breathless headings act as click bait for the NZH and its advertisers.

Even for Auckland owner-occupier home owners, over the past year their equity (on average) has gone up by more than the CPI. That is an unrealised tax-free gain. Plus they have enjoyed the accommodation offered by their home (the value of which is untaxed).

If they had had their home equity in a term deposit, they would have been lucky to have earned 4%, all of which would have been taxable. After tax that would have barely covered the increase in the CPI.

[macduffy]

So true, Bj. The article, however, was a Fairfax (Stuff) one which is equally lightweight in the Business section these days.

[bull....]

Some should read annual reports, property market is very important to the sector possibly the most important factor for this sector.

[percy]

Some should read annual reports, property market is very important to the sector possibly the most important factor for this sector.

Possibly you should point this out to the directors and management of Ryman,as they seemed to have missed it.!
Have done so for over 25 years or more.
They still think it is an aging population who chose their retirement villages for lifestyle reasons.
May pay to let SUM know as well, as they seem to share Ryman's view.

[bull....]

Possibly you should point this out to the directors and management of Ryman,as they seemed to have missed it.!
Have done so for over 25 years or more.
They still think it is an aging population who chose their retirement villages for lifestyle reasons.
May pay to let SUM know as well, as they seem to share Ryman's view.

you maybe correct percy about the companies thinking differently but analysts I would think would say property cycle is more important

[percy]

you maybe correct percy about the companies thinking differently but analysts I would think would say property cycle is more important

Well we have a choice,listen to analysts, or the people who know the business best.
One has a record of being right,while other does not.
25 years is a long time for analysts to be wrong.!

[Bjauck]

So true, Bj. The article, however, was a Fairfax (Stuff) one which is equally lightweight in the Business section these days.

LOL, I am so used to expecting it from the NZH! Yep they seem to be morphing into one, merger or not.

[bull....]

Well we have a choice,listen to analysts, or the people who know the business best.
One has a record of being right,while other does not.
25 years is a long time for analysts to be wrong.!

companies also say tthat care facilties, serviced apartments mitigate the slowdown in the property sector thats there argument.

[RTM]

Possibly you should point this out to the directors and management of Ryman,as they seemed to have missed it.!
Have done so for over 25 years or more.
They still think it is an aging population who chose their retirement villages for lifestyle reasons.
May pay to let SUM know as well, as they seem to share Ryman's view.

Surely there must be some kind of link. High property prices will enable folk approaching retirement to sell, buy into a RYM / MET /SUM / etc village and have some left over for kids, cars, trips or general health and well being. If property prices are low, then I think a lot of folk might not be able to afford the retirement village option and may just sit tight in their homes. Not everyone is as "well positioned" as Percy !

Disc. Small holding in SUM

[percy]

Currently 50 people a week make a retirement village their new home,for lifestyle reasons.Most will "meet the market" when it comes to selling their own property.Most will have a good deal of money left over,after buying their retirement unit.
Question time; What will be the number of people making the same decision in ;
1] a year's time.
2] In 5 years time.
3] In 10 years time.

RTM There are a great number of people better "well positioned" than me.
I do realise there are great number of people who do not own their own home, or can ever afford to stop working.They are not RYM or SUM's target market.