OCA - Oceania Group - retirement villages

[iceman]

According to Patrick Smellie's article on Businesss Desk today, Treasury rated the housing policy changes "worse than doing nothing" on many scores and this :
""The IRD was even less enthusiastic than the Treasury about both the brightline test exemption and deductibility moves, recommending against both, but supporting a five-year exemption on new builds if the government was determined to go ahead.

The Inland Revenue Department’s commentary said, “there is a good reason to exempt new builds to minimise adverse impacts of the measures in reducing the supply of new housing”.

Such an exemption should simply leave the existing five year brightline test in place.

“Building consents are at an all-time high. A full exemption would create an incentive for speculation in the market for new builds, placing further upward pressure on prices.” "

[Blue Skies]

According to Patrick Smellie's article on Businesss Desk today, Treasury rated the housing policy changes "worse than doing nothing" on many scores and this :
""The IRD was even less enthusiastic than the Treasury about both the brightline test exemption and deductibility moves, recommending against both, but supporting a five-year exemption on new builds if the government was determined to go ahead.

The Inland Revenue Department’s commentary said, “there is a good reason to exempt new builds to minimise adverse impacts of the measures in reducing the supply of new housing”.

Such an exemption should simply leave the existing five year brightline test in place.

“Building consents are at an all-time high. A full exemption would create an incentive for speculation in the market for new builds, placing further upward pressure on prices.” "

Few observations, Treasury could not have got it's predictions about house prices more wrong last year so maybe they're not most credible source of advice.
They also said the BL test should be extended to 20 years not 10.
With a massive percentage of mortgage lending going to investors last year, outbidding FHB'ers & dangerously pushing prices/income ratio's into alarming territory based purely on expectations of Capital Gains & a shrinking number of homeowners, govt now staked its reputation on curbing rampant house price inflation & will do whatever it takes to achieve this.

[850man]

According to Patrick Smellie's article on Businesss Desk today, Treasury rated the housing policy changes "worse than doing nothing" on many scores and this :
""The IRD was even less enthusiastic than the Treasury about both the brightline test exemption and deductibility moves, recommending against both, but supporting a five-year exemption on new builds if the government was determined to go ahead.

The Inland Revenue Department’s commentary said, “there is a good reason to exempt new builds to minimise adverse impacts of the measures in reducing the supply of new housing”.

Such an exemption should simply leave the existing five year brightline test in place.

“Building consents are at an all-time high. A full exemption would create an incentive for speculation in the market for new builds, placing further upward pressure on prices.” "

The truth comes out, not recommended by the experts but Cindy goes ahead anyway. Another knee in the balls for the NZ economy

[newtrader]

Does anyone have any thoughts on how many shares realistically retail shareholders will receive under the share offer? I presume it will be scaled down based on a percentage of your current holdings.
Of course you can apply up to 50k, but no real point tying up cash and see a majority of it being refunded.

What do you think? 10-20% of current holdings?

[BlackPeter]

Does anyone have any thoughts on how many shares realistically retail shareholders will receive under the share offer? I presume it will be scaled down based on a percentage of your current holdings.
Of course you can apply up to 50k, but no real point tying up cash and see a majority of it being refunded.

What do you think? 10-20% of current holdings?

Dilution is something like 13% and I suppose that this is what they will give everybody who asks for it as a matter of course ... i.e. I'd assume if not everybody participates we might get something like 15% of existing shares. 20% feels quite optimistic, but if you don't need the money for the next three weeks or so - why not try?

[Beagle]

https://www.nzherald.co.nz/business/...WX4WK7NZXPTQ4/
Tax expert Robin Oliver, a former deputy commissioner at the IRD, described the Government's move on interest payments by landlords as "out there". Oliver, who sat on the Government's tax working group in the last term said he could not think of an example of a sector being unable to deduct an expense which was available to all other sectors of the economy. It would amount to "a massive tax penalty on renting out property," he said. "You're taxed on income that you don't actually have, because your profit is your income minus your expenses, but they just ignore the expenses part," Oliver said."You could have almost no profit, maybe a loss, but you still have to fork out thousands of dollars to the IRD. It's not an income tax, it's just a penalty."
Oliver claimed a sharp drop in the Kiwi dollar since the announcement likely reflected international investors fretting about the risk of putting money in New Zealand. "

No new taxes in our next term in Government, anyone remember that ? This is a new tax, its the egregious disallowance of the biggest legitimate expense landlords have and is therefore a new penalty tax. Calling it closing a loophole is the most blatant and disingenuous propaganda I have ever heard. I am hopeful this will cost them the next election as this anti business ideology is extremely ugly and attacks middle N.Z., the typical Mum and Dad investor with one or two rental properties trying to get ahead and build a decent life for their family.

I think this comment in the comments section sums it up very well A popover with more user information
"Labour calling interest deductibility a "loophole" is a disgrace, and the business community should demand a retraction of this mis-characterisation. It beggars belief that this actually happened, and shows their anti-business ideology in its full nakedness. Not a pretty sight and will cost them the next election. Jacinda's political capital has just been nuked as far as middle NZ is concerned".

There will be an impact on the housing market for sure. There will be an equal sized positive impact when a National lead coalition remedies this outrageous tax grab.

In terms of the cash issue they have the option to accept oversubscriptions so one's allocation could be more than the theoretical. Whether $1.30 is a bargain after the radical movement of the goalposts is another question but it could be less as effectively its at $1.30 or a 2.5% discount to VWAP whichever is the lower.

[Biscuit]

https://www.nzherald.co.nz/business/...WX4WK7NZXPTQ4/
Tax expert Robin Oliver, a former deputy commissioner at the IRD, described the Government's move on interest payments by landlords as "out there". Oliver, who sat on the Government's tax working group in the last term said he could not think of an example of a sector being unable to deduct an expense which was available to all other sectors of the economy. It would amount to "a massive tax penalty on renting out property," he said. "You're taxed on income that you don't actually have, because your profit is your income minus your expenses, but they just ignore the expenses part," Oliver said."You could have almost no profit, maybe a loss, but you still have to fork out thousands of dollars to the IRD. It's not an income tax, it's just a penalty."
Oliver claimed a sharp drop in the Kiwi dollar since the announcement likely reflected international investors fretting about the risk of putting money in New Zealand. "

No new taxes in our next term in Government, anyone remember that ?

I think this comment in the comments section sums it up very well A popover with more user information
"Labour calling interest deductibility a "loophole" is a disgrace, and the business community should demand a retraction of this mis-characterisation. It beggars belief that this actually happened, and shows their anti-business ideology in its full nakedness. Not a pretty sight and will cost them the next election. Jacinda's political capital has just been nuked as far as middle NZ is concerned".

Absolutely 100% agree. Disgraceful is the only word to describe this.

[justakiwi]

Can we please try to keep this thread OCA focused? I get that the current housing situation and associated politics, is relevant to the retirement sector, but there are other threads where it could be discussed.

[Waltzing]

we think in our little group that NZ is on a path to join the Nordic country's and its a 3 term at least with G support unless this blows up with house prices recovering and some very fancy private company syndicates taking over the investing public. In our pre 2000 incarnation we were part of the role out of horses for courses syndicates and they sold and sold and sold....

where there is a will theres a way and already one young turk ACA proposed a new private company structure for house rentals last year.

Imagine the business coming the way of the accounting profession....

And if you have to track days in your houses imagine the fun and games with that..

Its only a short trip next election cycle to a wealth tax...oh imagine the accounting for that...and we have a lovely suite ready for it already...we also dont have to worry about contra's as it handles that in auto mode...

commercial property could be the next sector to become very very inflated and money flows into that.

[davflaws]

https://www.nzherald.co.nz/business/...WX4WK7NZXPTQ4/
the typical Mum and Dad investor with one or two rental properties trying to get ahead and build a decent life for their family.

Has the "typical mum and Dad investor" really got one or two rental properties?? Doesn't everyone want to get ahead and build a decent life for their family??

I guess I see the Govt's latest move as as the first comprehensive attempt to deal with our chronic structural shortage of housing in the last thirty years. That is more important to me (because the housing shortage has effects that fall disproportionately on the "have nots" and which go right across health, education, and justice, than an additional impost on people who own several houses.

And of course I am strongly in favour of measures that promote a more equal society (nearly everyone is healthier and happier). But then I'm a socialist.

Disc: bought 120,000 OCA at 135 yesterdayi