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26-03-2021, 12:16 PM
#8331
Yes. That is correct.
Originally Posted by dobby41
Am I reading the offer correctly that the price is the lower of $1.30 or 2.5% discount to the 5 day average prior to 12th April - so may be less than $1.30
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26-03-2021, 02:36 PM
#8332
Originally Posted by Beagle
Cindy is the master of "spin" Unfortunately there are vast hordes of "have nots" out there that lap that complete nonsense of "close the loophole up" because they think all people who have done well have been rorting the system.
I have revised down my fair value price target for OCA because I think house price inflation going forward in the foreseeable future will be negligible. Shares are fair value at $1.30 in my opinion, certainly no great bargain there and investors will need to take a long term view because I see little to get this fired up again towards $1.60 anytime soon.
Not quite sure I understand where this pessimism is coming from. Most analysts think that the impact of the governments latest house price package will be moderating the market, but only modestly.
Interesting to look into todays data wrap released form the ANZ research team. They think that the latest announcements might push house price inflation down by roughly 2 % per year - which would mean for the current year only 25% house price inflation instead of the originally estimated 27%.
https://publications.anz.com/Singlet...0-16c65a8eded5
Given that I am not sure the link will work - here is the relevant graph:
ANZHousePriceOutlook.JPG
Now, I don't like the way how the government introduced this change either and there are clearly fairness issues, but from the economic impact (and the impact on house prices) I don't think this means the end of the world is nigh ...
I don't see the latest tax changes impacting significantly on OCA or any other retirement village provider, and people will grow old and need care as before this announcement ...
As far as house prices are concerned ... I think the measure is likely to take the edge of the currently absolutely crazy house price inflation, and this is a good thing.
Last edited by BlackPeter; 26-03-2021 at 02:39 PM.
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"Prediction is very difficult, especially about the future" (Niels Bohr)
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26-03-2021, 02:56 PM
#8333
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26-03-2021, 02:58 PM
#8334
Originally Posted by davflaws
YUK! You should be ashamed of yourself.
Sorry to disturb your cornflakes - but as you will be aware - with a certain patronage the point is valid ..
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26-03-2021, 03:03 PM
#8335
Originally Posted by dobby41
Am I reading the offer correctly that the price is the lower of $1.30 or 2.5% discount to the 5 day average prior to 12th April - so may be less than $1.30
Correct.
A lot of investors are angry about Labour collapsing the goal posts on top of them BP. Two thirds of houses at the big Auckland auction were passed in with no bids on Wednesday, the day after Labour dropped their bombshell.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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26-03-2021, 03:15 PM
#8336
Not related to OCA directly, but relevant to valuation of its property. Deductibility of interest shouldn't put a long term damper on property prices. While not deductible against income, it will be deductible against bright line tax as a holding cost. One way or another it will be deductible. So for investors who want to sell within 10 years, it shouldn't be a real burden, or have I got it wrong. If I am right the effect on property prices may not be as great.
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26-03-2021, 03:29 PM
#8337
Last edited by nztx; 26-03-2021 at 03:33 PM.
Reason: add more
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26-03-2021, 03:40 PM
#8338
"Have I summed it up correctly or missed anything"
and send that to the Pm
but what effect will it have on OCA and sector if any...?
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26-03-2021, 03:46 PM
#8339
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26-03-2021, 03:46 PM
#8340
https://www.interest.co.nz/property/...+26+March+2021
Its difficult to come to any other conclusion than the tide has turned, or is about to turn.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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