OCA - Oceania Group - retirement villages

[bottomfeeder]

Stuff just reported that it cost 21% more to build a residential home today than it did a year ago. So much for the scaremongering that house prices will collapse and so will OCA asset base. From here it is only onward and upward.

[Baa_Baa]

Stuff just reported that it cost 21% more to build a residential home today than it did a year ago. So much for the scaremongering that house prices will collapse and so will OCA asset base. From here it is only onward and upward.

Further to that, OCA recently reported that their locked in build pipeline is fixed price.

You'd be misinformed at the least to think any of the RV's are seriously exposed to cost of builds, or their suppliers who are their preferred supplier business partners enjoying continuous build work pipelines at good margins. These things are planned out years in advance with sufficient wiggle room on both sides to navigate materials price fluctuations.

But, you won't know about that reading financial reports. It pays to have the inside knowledge which is easily found, just by asking.

Your point appears to be that costs can be passed on to new ORA's. I think that underpins my point that it is largely irrelevant what it costs to build a property, when ultimately the RV and builder have flexibility on managing costs, but the RV has ultimate right of pricing the property for sale.

And the end product, the property, is sold (or de-facto leased really) at market, which takes into account all of those factors.

[Muse]

Further to that, OCA recently reported that their locked in build pipeline is fixed price.

You'd be misinformed at the least to think any of the RV's are seriously exposed to cost of builds, or their suppliers who are their preferred supplier business partners enjoying continuous build work pipelines at good margins. These things are planned out years in advance with sufficient wiggle room on both sides to navigate materials price fluctuations.

But, you won't know about that reading financial reports. It pays to have the inside knowledge which is easily found, just by asking.

Your point appears to be that costs can be passed on to new ORA's. I think that underpins my point that it is largely irrelevant what it costs to build a property, when ultimately the RV and builder have flexibility on managing costs, but the RV has ultimate right of pricing the property for sale.

And the end product, the property, is sold (or de-facto leased really) at market, which takes into account all of those factors.

Re bolded point: yes go baa baa

And in any event, I suspect we are at peak building price inflation right now. ANZ's property focus, released today, the graphs on page 2, summarise it too well for any other words

https://www.anz.co.nz/content/dam/an...s-20220628.pdf

[bull....]

500 m loan based on green stuff.

[Snow Leopard]

500 m loan based on green stuff.

Good eh?

Buy some bull, help ensure the start of the uptrend, then buy more on TA principals.

[bull....]

Good eh?

Buy some bull, help ensure the start of the uptrend, then buy more on TA principals.

i buy one day
like when property stabilizes and when covid gone and when staff issues are over and when inflation is sorted and when .....

[bottomfeeder]

i buy one day
like when property stabilizes and when covid gone and when staff issues are over and when inflation is sorted and when .....

When all that happens the SP will be $1.80. It will be a bit late trying to buy in at less than a dollar.

[Rawz]

When all that happens the SP will be $1.80. It will be a bit late trying to buy in at less than a dollar.

Thats what i was thinking. Buy when there is blood on the streets

[Habits]

Thats what i was thinking. Buy when there is blood on the streets

I think the price being what it is I would love to buy in right now. Much better than the 1.60 it got to. When it was just over 1.00 the share was spruiked and some did buy. However as I keep watching I see the price going down and is firmly under a buck. There is no way it will be 1.80 anytime at least not for a long time.

[Rawz]

I think the price being what it is I would love to buy in right now. Much better than the 1.60 it got to. When it was just over 1.00 the share was spruiked and some did buy. However as I keep watching I see the price going down and is firmly under a buck. There is no way it will be 1.80 anytime at least not for a long time.

Isnt it funny how hard it is to buy when markets are tanking and so easy to buy when markets are rising.