HGH - Heartland Group Holdings

[percy]

" It was done by Heartland Bank, which is a major provider of reverse mortgages."

Hmmmm...well...I do hope they are right. My Mum was certainly pretty determined to stay in her house as long as possible. But I wonder if this is like a political party polling their mailing list !

I noted they asked people aged over 50.
I would think it would be more relevant if they asked people aged over 70.?

[Bjauck]

I noted they asked people aged over 50.
I would think it would be more relevant if they asked people aged over 70.?

The age at which people retire in NZ is comparatively high in NZ at about 68, compared to 65 in Australia and 64 in the UK. That is probably in part owing to NZ's small private superannuation sector. Yet NZ has a lot of wealth wrapped up in residential housing.

I think there are plenty of people aged 50-70, or maybe 55-70's, who want or would like to retire early. Rates of burn-out, illness and disability increases during middle age. Kiwis, including in the Boomer and X gens, tended to invest heavily in their homes. So 50-70's have scope to downsize and retire or semi-retire and live off their released capital sum, which given NZ house prices may be a tidy amount for many. Also that age group may wish to help their children purchase a house. I imagine there is plenty of scope in that target sub-market for HGH equity release.

https://www.lovemoney.com/gallerylis...world-revealed

Disc: HGH is one of my larger holdings.

[Beagle]

I noted they asked people aged over 50.
I would think it would be more relevant if they asked people aged over 70.?

Exactly. It should be noted that the average age of an incoming resident into a retirement unit is just on 80 years old and this is true right across the sector. I would think nearly all respondents in their 50's, especially low 50's would give the same answer.

Once you get over about 70 I'd imagine many would have a much better handle on the realities of age related issues and the advantages a retirement home confers.

That said I do think HGH has a HUGE total addressable market with its reverse equity loans.

[Waltzing]

removed wrong thread.

[percy]

Exactly. It should be noted that the average age of an incoming resident into a retirement unit is just on 80 years old and this is true right across the sector. I would think nearly all respondents in their 50's, especially low 50's would give the same answer.

Once you get over about 70 I'd imagine many would have a much better handle on the realities of age related issues and the advantages a retirement home confers.

That said I do think HGH has a HUGE total addressable market with its reverse equity loans.

Agree.
Agree.
Agree.

[Beagle]

Agree.
Agree.
Agree.

Mrs B swears she'll never move into a retirement village...but she's not even 60 yet. I just have a chuckle to myself and say, we'll see

[arekaywhy]

just on that, given the way we have seen folks in retirement villages get treated when everyone panicked about a flu, folks in my generation seem to agree with the sentiment that fcuk all the way off if you think I'm going anywhere near one of those places. Can you imagine being in a prison? It wouldn't matter how "luxurious" it was.

If that is what people are waking up to, then I'm not so sure there is such a tail wind for this industry. I'm putting my money elsewhere.

[percy]

Mrs B swears she'll never move into a retirement village...but she's not even 60 yet. I just have a chuckle to myself and say, we'll see

I am 73,wife 72, and really have no idea whether we will move into a retirement village.
I lot of friends have died,and circumstances can change so quickly.
One of us could die,have a stroke,or get dementia,which would mean the safety/care of a retirement village would be an attractive option.
There is a large number of social services available for people who decide to stay in their own home.
We live in a 3 year old over 60s unit,so maintenance is not an issue.
We did look at retirement villages before we bought our unit,and decided lack of privacy was an issue for us,which put us off retirement villages.
Did not want to see the neighbour enjoying bacon and eggs, while I was just having a kiwi fruit and toast for breakfast..lol

[Biscuit]

just on that, given the way we have seen folks in retirement villages get treated when everyone panicked about a flu, folks in my generation seem to agree with the sentiment that fcuk all the way off if you think I'm going anywhere near one of those places. Can you imagine being in a prison? It wouldn't matter how "luxurious" it was.

If that is what people are waking up to, then I'm not so sure there is such a tail wind for this industry. I'm putting my money elsewhere.

Wait until you are a bit older and are confused how to use a toaster.

[amalgam]

I am 73,wife 72, and really have no idea whether we will move into a retirement village.
I lot of friends have died,and circumstances can change so quickly.
One of us could die,have a stroke,or get dementia,which would mean the safety/care of a retirement village would be an attractive option.
There is a large number of social services available for people who decide to stay in their own home.
We live in a 3 year old over 60s unit,so maintenance is not an issue.
We did look at retirement villages before we bought our unit,and decided lack of privacy was an issue for us,which put us off retirement villages.
Did not want to see the neighbour enjoying bacon and eggs, while I was just having a kiwi fruit and toast for breakfast..lol

I am 80 & my wife is 75…we have just sold our house & are about to move into a retirement village. We thought like you Percy…lack of privacy etc…..but in the last year things have changed medically & we have decided to seek security with people our own age. Our children wont need to worry about us as much in the future as we have continuing care in the village.
Its a different period in our lives, as no longer are we striving to make or save money. In fact the we accept the fact that our villa will not appreciate in value.
The family wont get as much from our estate when we die…we are going to gift a substantial amount now.