Here its simply even if a CGT is implemented which it already is. Property has a CGT in NZ and only your occupancy primary dwelling is except.
...
NZ does not have a general comprehensive CGT or a Wealth Tax. However capital gains and also capital in some circumstances can become taxable through other tax provisions. For example, this could be via the property bright line length of ownership test, financial arrangement rules, FIF provisions on investments and other rules determining what is subject to income tax.
There were quite a few folks heavily weighted to cash, worried about all sorts of bad things that can affect the market, then along comes one thing no one was talking about. A pandemic.
Look what that did though, create a whole range of amazing buying opportunities across the market. Some really clever ones would have sold the TA and bought the TA later on, albeit heart in mouth stuff on a wild ride.
In OCA's case it got to half of IPO under 40 cents, traded up for awhile well under NTA offering sustained outstanding buying, then continued up. All the while gifting those who deployed the dry powder, a buying opportunities that may never present themselves again.
On top of that OCA finished up the calendar year about 7% +ve on 2019 not including dividends. Albeit challenging to remain objective in such wild times, the moral of the story is sh1t happens and those with a few readies stashed aside and/or trading skills, can do very well in the 'bad times', very well indeed.
Truly was a wild ride last year
Yes, amazing both OCA and SUM are up ~270% from their covid crash lows
Amazing because while one was a ridiculously cheap undervalued stock the other was seen as past it’s best and outrageously overvalued ... and one was up 40% for the year. .....weird eh
Whatever both will continue to reach new ATHs over the next month or so.
Last edited by winner69; 03-01-2021 at 02:25 PM.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Fascination with certain trends keep me updating this chart of OCA shareprice as a %age of SUM shareprice
Even lately with strong performance of OCA (expectation of good news or just hype I don't know) it just happens that SUM did better (did come out with guidance but that wasn't that flash)
Always a good thing to ask why things happen
They say share prices to a large extent is a measure of market sentiment (as charts reflect actual performance and valuation multiples). If so the trend on the chart says that the market over a pretty long period of time thinks SUM to be a better bet than OCA ...and the love towards SUM is getting stronger.
Maybe something else drives the trend but whatever it's pretty entrenched.
So entrenched it possibly shows that Oceania have done an useless job of telling the market how great they are going to be. They can't rely on a a couple of contributors on a share chat forum to get the word out.
Then again many punters might be be put off by hearing 'there's no money to be made in care' and Oceania going on about 'we're moving more and more to a care based model'
I've got both but having OCA has been rather an expensive hedge against SUM
One good thing - trend can't last forever - unless OCA become worthless
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Then again many punters might be be put off by hearing 'there's no money to be made in care' and Oceania going on about 'we're moving more and more to a care based model'
I've got both but having OCA has been rather an expensive hedge against SUM
One good thing - trend can't last forever - unless OCA become worthless
Perhaps this paradigm just reflects what has been going on in contemporary NZ society. Care, and care of the less fortunate, is placed behind residential real estate capital gains?
Perhaps this paradigm just reflects what has been going on in contemporary NZ society. Care, and care of the less fortunate, is placed behind residential real estate capital gains?
Pretty much a sad commentary on where we are as a nation and the heart of mankind perhaps. Government should legislate that one person/ entity/ couple can own no more than three properties, residential home, holiday home and investment property. Landlords borrowing to own multiple houses exploiting a housing need of unfortunates needs to be stopped. Sadly a reflection of the society we live in today.
In my humble opinion “care” is what is going to be needed the most in the future. Sure, there will always be wealthy retirees who want a lifestyle village/apartment retirement, but the vast majority of people are not/won’t be in that category. In my job in a small NGO rest home, I am already seriously concerned about the changing dynamics we are now seeing. Our last two incoming residents were 99 and 94. Our youngest resident is 70. Our oldest has just turned 104. I don’t do day shifts so I can’t speak for day staff, but those of us working afternoons (3.30-11pm) are already struggling. The needs of our residents are increasing at what feels like a rate of knots. I just did a weekend supervisor shift and I am exhausted - physically and mentally. With only two staff on before 4.30pm, and after 7.30pm, we were running all night. We didn’t get to sit down and write our notes until 10.40pm. We had one 10 minute cuppa break at 6pm and our dinner break at 8.25pm - we were then back up at 8.35pm. We are classed as rest home level care. If this is what basic rest home level care looks like now, in 6 months or a year, we will not be able to cope with current staffing levels. OCA has it right - they seem to be the only ones who recognise that the demands for care are about to sky rocket. Care will always be subsidised by the government - regardless of which party is in power. Costs will no doubt increase, so fees will follow. But the government will continue to meet this cost. Care subsidies will always be guaranteed income to care facilities.
I hold OCA for this very reason. Their philosophies are reasonably well aligned with my own. Care is my passion and I feel it is also theirs. Yes, they still need their apartments and independent units, but care will be more important down the track than many realise.
Originally Posted by Bjauck
Perhaps this paradigm just reflects what has been going on in contemporary NZ society. Care, and care of the less fortunate, is placed behind residential real estate capital gains?
With new forecasts predicting up to and over 10% growth in house prices? in the next 12 months surely this is enough to move the price on even OCA with no increase in profit other than a return to pre virus levels.
In my humble opinion “care” is what is going to be needed the most in the future. Sure, there will always be wealthy retirees who want a lifestyle village/apartment retirement, but the vast majority of people are not/won’t be in that category. In my job in a small NGO rest home, I am already seriously concerned about the changing dynamics we are now seeing. Our last two incoming residents were 99 and 94. Our youngest resident is 70. Our oldest has just turned 104. I don’t do day shifts so I can’t speak for day staff, but those of us working afternoons (3.30-11pm) are already struggling. The needs of our residents are increasing at what feels like a rate of knots. I just did a weekend supervisor shift and I am exhausted - physically and mentally. With only two staff on before 4.30pm, and after 7.30pm, we were running all night. We didn’t get to sit down and write our notes until 10.40pm. We had one 10 minute cuppa break at 6pm and our dinner break at 8.25pm - we were then back up at 8.35pm. We are classed as rest home level care. If this is what basic rest home level care looks like now, in 6 months or a year, we will not be able to cope with current staffing levels. OCA has it right - they seem to be the only ones who recognise that the demands for care are about to sky rocket. Care will always be subsidised by the government - regardless of which party is in power. Costs will no doubt increase, so fees will follow. But the government will continue to meet this cost. Care subsidies will always be guaranteed income to care facilities.
I hold OCA for this very reason. Their philosophies are reasonably well aligned with my own. Care is my passion and I feel it is also theirs. Yes, they still need their apartments and independent units, but care will be more important down the track than many realise.
thank you Justakiwi this is really great insight from your position. Appreciate the post.
Originally Posted by Waltzingironmansinlgescul
Reply With Quote
Bookmarks