OCA - Oceania Group - retirement villages

[Biscuit]

......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.....

Well, I'm a capitalist. I'm also in favour of promoting a more equal society. I'm always happy to pay tax and I don't go out of my way to avoid tax. It is probably true that property price growth is undesirable and unsustainable. Eventually, high prices will stimulate supply or other solutions. Its a market. That's how markets work. Socialism on the otherhand.... does not work.

[daveypnz]

Sharesies investors can participate. We were even able to apply for the initial Placement Offer, which I do not understand.

Sharesies is considered an institution therefore were able to allow their customers to participate in the raise despite not being institutional investors.

[justakiwi]

Yes I understand that, but what’s the point of a company having two separate offers (one for institutional and one for retail investors) if individual (technically “retail”) investors can participate in both? It seems to defeat the purpose to me.

Sharesies is considered an institution therefore were able to allow their customers to participate in the raise despite not being institutional investors.

[Chinesekiwi]

I could not have written better to reflect my thoughts - snap!

Well, I'm a capitalist. I'm also in favour of promoting a more equal society. I'm always happy to pay tax and I don't go out of my way to avoid tax. It is probably true that property price growth is undesirable and unsustainable. Eventually, high prices will stimulate supply or other solutions. Its a market. That's how markets work. Socialism on the otherhand.... does not work.

[daveypnz]

Yes I understand that, but what’s the point of a company having two separate offers (one for institutional and one for retail investors) if individual (technically “retail”) investors can participate in both? It seems to defeat the purpose to me.

Because only current shareholder can participate in the retail offer. Any sharesies member was able to participate in the institutional offer. I assume the reason retail investors typically can't participate in institutional offers is because they don't have enough capital to make it worthwhile but sharesies with their large customer base makes it worthwhile.

Current holders can participate in both to accumulate more shares if they desire, especially with scaling.

[Curly]

Getting close to a buy on the market and avoid any scaling.

[Panda-NZ-]

It won't matter what "vehicle" a residential property is owned by. The new draconian envy penal tax will still apply.

If we repealed the disgraceful revenue tax increase by John to 15% then rest home and medical care fees would be cheaper. Most NZers don't own investment properties and sell their primary home to go into retirement care.

[Blue Skies]

No govt policy will appeal to everyone but I think there's been a sea change in the majority on NZ'ers attitudes to rampant speculation driving house prices up way out of kilter with incomes, & home ownership far beyond the reach of even well paid professional young couples & families.

National backing property investors over young families might be backing the wrong horse on this one. Not many are going to lose sleep over a property investor (making far more money tax free than a young professional with years of training paying PAYE on salary), having to pay some tax on huge profits.

My hope is this will redirect some of that speculative property investment into the share market by those mum & dad investors trying to secure their retirement, into NZ businesses which are creating and providing jobs for the country, companies like OCA.

(Just to note, remember the Bright Line test was created by National & efforts to label it a CGT were rejected by John Key, although to my mind that's always what its clearly been).

[Beagle]

To be clear, I have no issue with the bright line test being extended to 10 years and this is congruent with a number of other specific previsions (which i won't go into) within the Income Tax Act around holding property for 10 years.

I do have a major issue with upending the fundamental principle upon which the entire tax system has been founded many decades ago, that being that when a business expense is "necessarily incurred" in earning business income it is tax deductible. This comes on top of a plethora of other legislative changes (some of which are already grossly iniquitous to rental property investors,) and amounts to the Labour Govt adopting a punitive tax regime against a specific sector for alleged social good. All its going to do is seriously reduce the rental property supply and force up rents as landlords pass the extra cost of doing business on to their tenants. People are struggling to pay rent now on Auckland properties and landlords are struggling to get an acceptable return for the serious risks involved, (not the least of which is methamphetamine contamination of their property). Labour's changes will serious exacerbate the problem. I estimate Auckland rents on average will go up by $30 per week per annum for the next 4 years more than they otherwise would of without this radical tax plundering. Add in rent increases to cover ever increasing rates and insurance and tenants can expect some very serious pain in the years ahead.

Maybe the Govt's ultimate goal is to have vast numbers of tenants cooped up in huge state owned apartment blocks (beside railway lines to save carbon emissions) paying them exorbitant rent Xi Jinping style ?

Its the thin end of the wedge. What radical new upheaval of the tax system for so called social justice is coming next ? Lets decimate the offshore oil and gas exploration industry and now adopt punitive measures against another huge industry, rental properties. Where does it end ?

Wonder what Maverick is thinking seeing the value of his massive holding in OCA shrink under the weight of Labour's draconian and punitive tax extremism ?

I am not sure I can be bothered applying for shares under the retail offer. Disc: I let some more OCA shares go today. It feels like the tide is going out on this sector (in the short term at least).

[Panda-NZ-]

Rents have been going up, up and up under the current policies. The current situation is assumed to be a positive with your line of thinking, but it is not so for many.

Accomodation supplement needs to be axed now...
Working for families was brought in partly to pay for increasing rents.
Kiwisaver withdrawals another hopeless idea to throw in.
First home grant.. axe...