CDL & CDI ... Another Great Result

[percy]

In 1970 people in Sydney and London were wasting their time making the same points.?

[1leon]

In 1970 people in Sydney and London were wasting their time making the same points.?

Where were the free loans in Sydney and London in 1970?

[Beagle]

In 1970 people in Sydney and London were wasting their time making the same points.?

Yes exactly, and he completely skipped over my point that the better retirement village operators have villages throughout N.Z. Yes its expensive to live in Auckland, London, Paris, Sydney, Vancouver, New York and other very popular major cities in the world and it always will be. Most families need two incomes to live in Auckland.

I would simply reiterate post #264. If all you can see is risk, that's your call that you're perfectly entitled to make.
I see some risk and a truck load of opportunity.

[beetills]

I know of several families who were concerned with all the ""ticket clipping"" and looked at alternatives and 2 of the families eventually built granny flats on there property to house the parents.
The parents in both cases eventually moved to a rest home after their needs were more than the families could provide.
The elderly both only lived 12/18 months longer.

[macduffy]

The CDI/CDL thread seems to have morphed into another "retirement village operators" thread. Both deal in property but let's not confuse the two.

And incidentally, I agree Beagle - and am holding both CDI and a variety of retirement companies.

[Snoopy]

Yes exactly, and he completely skipped over my point that the better retirement village operators have villages throughout N.Z.

No, what I said was:

"I would contend that with the rise in national average prices outstripping Auckland over the last few years, this is a symptom of Auckland prices having hit the ceiling."

By that I meant that the house price rises in the regions in the last five years are probably not sustainable either! Sure the problem isn't as bad as in Auckland. But ultimately the regions will be in trouble too.

Yes its expensive to live in Auckland, London, Paris, Sydney, Vancouver, New York and other very popular major cities in the world and it always will be. Most families need two incomes to live in Auckland.

House prices are already maxed out. So if house prices are to rise further you will need a third income? What is your plan? Send the children out as chimney sweeps or have them man a permanent lemonade stand outside the house after school?

Out of interest I have looked up this website:

https://www.numbeo.com/cost-of-livin...re_cities.jsp?

and drawn up the following table (updated January 2020):

	Average Monthly Salary (After Tax) {A}	Cost of Living Index {B}	Relative Affordability {A}/${B}
Auckland	$3,925.25	75.73	51.82
London	$4,635.41	80.59	57.52
New York	$7,839.27	100	78.39
Paris	$3,724.26	84.84	43.89
Sydney	$5,057.03	79.34	63.74
Vancouver	$4,414.10	73.47	60.08

What were are looking for in the above table is a higher income to cover your expenses. This table shows that living in Auckland on average you will be relatively worse off than someone living in London, New York, Sydney or Vancouver. Pity the poor Parisian who is worse off than the average Aucklander, But, Paris apart, Aucklanders on the average are paying way more to live in their city, in relative terms, than all of those global headline cities you mention. Yet you still believe that Auckland property prices will continue to rise at historical rates and outstrip all the other global cities you mention because real estate in Auckland is too cheap?

This must cause CDI investors to think again about the fair value of those development assets on the books!

SNOOPY

[Beagle]

Sorry for the thread hijack folks. Let me conclude by simply suggesting that if perhaps some consider we are due for a long period of sideways house prices while incomes catch up like what happened to the national average price in the period between 2007 and 2013, see page 4 https://www.reinz.co.nz/Media/Defaul...ber%202019.pdf then if the retirement village model doesn't work how come RYM grew underlying earnings very strongly ever year over those 6 years ?

Snoopy If you are trying to plan for an event worse than the GFC I suggest you've lost perspective and are simply focusing too much on the negative.
We have arguably one of the most comprehensive social welfare systems in the world, with accommodation supplements and extremely generous family support packages for low and middle income families.

All long term data I have seen on the national average property price and some goes way further back than 1992, shows at worst the market goes slightly down to sideways for 5-6 years and if we go and have a look at RYM they made $41.6m in 2007 and that grew over the years the real estate market went sideways during the GFC to $100.2m in 2013.

The model really works. No time to get into social debates about housing affordability. If people can't stand the heat get out of the kitchen.

[kiora]

Who will ultimately benefit from the profits this company generates?
Certain major shareholder or small investors?

[percy]

Who will ultimately benefit from the profits this company generates?
Certain major shareholder or small investors?

Come on?
Do you really need to ask.?

[Scrunch]

Who will ultimately benefit from the profits this company generates?
Certain major shareholder or small investors?

The benefit or loss will be proportional to people's shareholding. Major shareholders can influence whether those returns are retained in the company or paid out as dividends but they don't get an uneven share of them.

As the ultimate parent company has recently changed ownership there is an increased chance of a different distribution strategy.