OCA - Oceania Group - retirement villages

[RTM]

I think most / all politicians lie. See below. I don't trust any of them.
Jacinda's lot need to try to rein in house prices. "We" might not all agree with the course of action that they have taken.
But at least they are burning some political capital and having a go. Couldn't continue as it was.
If this works...I doubt National will unwind this completely.
We now need to adjust our investment decisions accordingly. I would guess that the share market will be a recipient.
What else is there ?


https://www.nzherald.co.nz/nz/pm-def...RPHONZC2P2WZE/

"Prime Minister John Key has come under fire in Parliament this afternoon after a Herald video revealed he had ruled out a GST rise during his election campaign in 2008.

Mr Key outlined the Government's 2010 agenda to Parliament yesterday and signalled it was likely to raise GST from 12.5 per cent to 15 per cent in May's Budget.

But in a 2008 press conference, Mr Key said raising taxes would not happen under a National Government.

"National is not going to be raising GST. National wants to cut taxes, not raise taxes." "

[Zaphod]

I think most / all politicians lie. See below. I don't trust any of them.
Jacinda's lot need to try to rein in house prices. "We" might not all agree with the course of action that they have taken.
But at least they are burning some political capital and having a go. Couldn't continue as it was.
If this works...I doubt National will unwind this completely.
We now need to adjust our investment decisions accordingly. I would guess that the share market will be a recipient.
What else is there ?


https://www.nzherald.co.nz/nz/pm-def...RPHONZC2P2WZE/

"Prime Minister John Key has come under fire in Parliament this afternoon after a Herald video revealed he had ruled out a GST rise during his election campaign in 2008.

Not quite the same, with the difference being that general taxation was lowered simultaneously. We haven't received any similar benefit from the current policy. But I do agree with the gist.

Perhaps we the kids should by some family homes in their name seeded with capital from Mum & Dad? The only winners on this policy will be lawyers and accountants. Nothing will stop property investment and rising prices. Governments just want to be seen to be doing something, not actually achieving anything.

[850man]

I am partially inclined to agree, its mostly about OCA and some politics. The rise of house prices did seem to stoke some interest in OCA, who it seemed were slow to capitalize on it. Govt policy changes have not played out yet and from what I have seen locally prices wont drop. An agent said to me yesterday still on the rise but they were not investment properties, so, which property are you selling to buy a unit? And if that's the case and OCA is only 30% up from 2 years ago, when it was often quoted as being under selling pressure, where are we now?

This thread reads like an exit poll ;-)

Thinking about this from the perspective of a future OCA resident - they will not be effected by CGT (labelling brightline what it really is) nor interest deductability. There will not be as many buyers for their current property and maybe they will not net as much but will this actually stop them from selling and moving to a OCA residence? I suggest the drivers to move into an OCA residence will still be there and maybe even with more urgency if indeed there is a downward trend in house prices on the way.
Could this in fact work in OCA's favour to expedite sales in this climate of uncertainty?

[nztx]

All part of the plan from the Jacinda PR machine. Smokescreen the lies, unfullfilled promises and ill considered decisions with a whole lot of social media likes, glossy magazine swooning, foreign leader inviting wedding hype. Second child just before next election and the reds will be in for another term.

More like no chance in hell of controlling a Supply & Demand property market - which will do the opposite
regardless like it has everywhere else globally .. Our own special breed of political nutcases IMo
have even lesser chance of controlling anything .. for starters they cant even identify the core problem ..
Have to find some targets instead to blame for Govt's ongoing failures .. how will that go down with
the ballooning queues of homeless going nowhere fast ?

[Blue Skies]

At the risk of stepping into an angry hornets nest on this thread, Kiwibank economists are still predicting double digit house price growth this year, despite the govt's new policies designed to reduce the appeal of the existing housing stock to speculators and direct those wishing to invest in housing into new builds.

That's got to be good news for OCA shareholders & while the SP might take a breather while impact of new policies are digested, with the support of massive demographics, its onwards and upwards long term.

https://www.stuff.co.nz/business/124...hikes-possible

[RTM]

If people have a well diversified portfolio, then this change should not be overly significant. I'm at 9% and sitting on significant gains, might trim a bit but not overly concerned about this over the longer term. However I do tend to mostly hold rather than sell at the first sign of the wind changing. So far so good....

Cut both in half, now sector at ~5% of portfolio. I consider this a real estate play. And am thinking it will be somewhat successful.

[Waltzing]

"Kiwibank economists are still predicting double digit house price growth this year"

well that will be interesting.

We are looking back over the last 15 years at RYM and the relation to the OCR and the 10-year both here and in the US.

Markets are just numbers. fiscal policies come and go over decades.

Inside the number processing factories for taxation Kick Nick names for the players in the market are just "Du Jour" and have no particular emotion attached to them.

DISC: Holding small. Awaiting numbers and stats.

[tommy_d]

correct beagle people should read this news report on what happened in the UK from similar decisions

In the UK property prices went up less than inflation after the introduction of similar policies
rents never spiked higher
there were the same bunch of people whining in the UK as in NZ that the opposite was to happen

https://www.newshub.co.nz/home/polit...fferently.html

if that happens here, then people like me will retrospectively view this set of changes as the best thing that could ever have happened in our society. Fingers crossed. I understand that there are others in this thread who will think an outcome of stabilising, or even decreasing house prices is bad. Here's one for ya, house prices have increased about 20% in the last 12 months. I'm not sure what the last three years version of that is, but if they decreased 30-40% from where they are now that would be great in my view, would suck for my net worth, but great for society and those who don't want divergence yet further from equality. Guess it depends on world-view.

Won't be great for OCA share price though.

[Waltzing]

Variances in asset price classes is merely rebalancing awaiting to happen.

Professional investors know not to react to policy by another means than to rebalance.

For those with decades in the markets emotions have long since been replaced by systems for managing transactions and capital.

For those on the blogs these helm over policies simple provide opportunities to write more articles.

If house prices do move up well OCA will be prove to be a good investment even if your allocations are not large.

https://www.interest.co.nz/opinion/1...learly-regards

[Sideshow Bob]

Received offer document yesterday.

Undecided if will bother applying - just from an admin perspective, and likely only to get a small portion.