OCA - Oceania Group - retirement villages

[James108]

Labour certainly have some big knives out at the moment. However the villages are usually owned for decades. The government would be cautious about revisiting that taxation of ORAs. More accommodation is needed not less.

I agree, I think the fact these villages provide lots of development at a time when this is sorely needed, increase housing density and excellent care that the government is unwilling to provide themselves insulates them from being a target of a tax that could slow down the excellent work they do.

[Zaphod]

That would depend on how popular sticking it to 'em is with the general populace. I wouldn't underestimate how powerful virtue signaling is, especially towards the end of the electoral term.

[Bjauck]

..Calling it "closing a loophole" is blatant leftist propaganda and an outrageous bald faced lie.
...

Thanks for your post. Totally agree. Changing circumstances notwithstanding, Robertson's failure to honour a specific previous promise showed his political manipulation. There were other ways to cool investor demand without lies. I say that as a former Ardern admirer.

[Habits]

Agree calling it a loophole is disingenuous but overall very happy with the change, taking the steam out of the out of control house inflation is more important than tax norms. Housing is supposedly a human right and it is and should be a very heavily regulated sector, all levers should be pulled until residential housing delivers an outcome much closer to what society requires. Luckily for those of us invested in Oceania I believe they are doing an excellent job on delivering on their societal expectations of excellent care.

The outcome as I see it will be, downward pressure on house prices, upward pressure on rents (although the additional costs will not be fully passed on). In Auckland after 10 years of increasing the build rate of new dwellings construction has finally started to exceed that required by population increase, I expect this will help reduce upward pressure on rents. Winners are FHB, losers are landlords and lifetime renters. Owner occupiers little impact.

For us Oceania (and SUM in my case) holders I think the 20% increase in house price seen in the last year will continue to flow through the accounts in the years to come. This may be moderated by maybe a fall in the order of 10% (?) over the next few years.

Brand new housing will be exempt from the BL and interest deductions... govt already signalled plus will not want to upset the construction sector. There is already a trend of build to rent and this move will drive more investors over to new homes I am sure

[Waltzing]

Not a complete write off of a policy but imagine if this sort of malarkey is extended to other party drinks and chips.

Its a slippery slope and if drinks dont sell it will TRY SOMETHING ELSE QUICK!!

we now only have a small holding after that lovely chao at the helm jumped cruise ship.

[bull....]

Won’t be funny if they put retirement sector interest and capital gains into the equation ......you never know what may happen these days

Some say current tax treatment for the sector is a ‘loophole’

yep every dick and harry will be building retirement villages now since they provide such big tax benefits ( loopholes) . the sector will become a glut of villages in the future

[Greekwatchdog]

Yes for the Glut of people who want to buy them..

[Waltzing]

winner is on the money honey... its a socialist party now. Anything goes whatch out. Did not think you would see the day well its here ladies and gentlemen and you wonder why some of us started shipping cargo to estonia. Its a 4 term government and this is just the beginning.

[winner69]

Ok .....what’s going to happen with the sha prices of OCA and others because of these changes

All took a hit yesterday cos of possible fall in property prices

[Blue Skies]

Ok .....what’s going to happen with the sha prices of OCA and others because of these changes

All took a hit yesterday cos of possible fall in property prices

Informed commentary suggests if there's a 10% correction in property prices, they will only fall back to where they were 4 months ago so should have little if any impact in the long run.
Not surprising to see some short term negative sentiment, the market is always over pessimistic just as much as swings to over optimistic.