OCA - Oceania Group - retirement villages

[Mudfish]

I have sent in my request for shares through the capital raise thing. Now I'm keen on SP pulling back. 5 day ave less 2.5%., no fees. A chance to hook a few at a brilliant price then the real possiblity of growth the following week as 'normal' trading renews due to offer being closed. What's not to like.

[Blue Skies]

Don't know why everyone's (well many here anyway) worried, National's David Bennett assures everyone 'investors haven't pulled out of the market,...that's just not true'.
So as you were, ignore all the naysayers, rampant house inflation price to continue.

https://www.newshub.co.nz/home/polit...or-claims.html

[Bjauck]

Hugely experienced Tony Alexander weigh's in https://www.oneroof.co.nz/news/39190 Excellent synopsis of the situation, in my opinion.

Thanks. Tony's view from 1 April 2021 is worth a read too. Apologies if this link has been posted before.

http://www.tonyalexander.nz/publications.php

[Grimy]

I have sent in my request for shares through the capital raise thing. Now I'm keen on SP pulling back. 5 day ave less 2.5%., no fees. A chance to hook a few at a brilliant price then the real possiblity of growth the following week as 'normal' trading renews due to offer being closed. What's not to like.

Hi MF. Have you put in for as many as you actually want, or a higher amount that you feel may be scaled (I know there's no way of knowing the % at present) back to what you want, or the maximum you can apply for?
I will be applying, but probably for an amount between the two first options. Which I know is only guessing.

[Blue Skies]

Thanks. Tony's view from 1 April 2021 is worth a read too. Apologies if this link has been posted before.

http://www.tonyalexander.nz/publications.php

A much needed, sensible, dispassionate perspective.
The recent hyperbole, emotive, irrational lets jump straight to worse case possible scenarios commentary on this thread is a bit surprising & seems to be running away with itself.
Seriously, were Retirement village profits always previously predicated on 20% annual house price increases ?
With income to debt ratios getting out of hand, homeownership levels falling, dangerously high debt levels by borrowers, investment money pouring into the housing stock instead of job creating wealth producing NZ businesses, was the govt supposed to do nothing?
I know a large business owner who wonders why he has all the worry of running a business, a 7 day a week job, looking after a large number of employees, when he could make just as much money without all the worry by buying a few houses and sitting on them. Where's the incentive now to start up or run a business?
And are corporate property landlords really a credible source of neutral commentary, of telling it like it is, or possibly they have a vested interest in maintaining the status quo.
And they might be wonderful people but anyone who worked for Lehman Brothers & HSBC in the past, well these haven't exactly been shinning corporate citizens.
And no this govt is not anything like a socialist govt or interested in redistributing wealth, anymore than or perhaps a lot less than Lehman or HSBC or many other merchant banks or corporate law firms. Our top tax rate kicking in at income over $180,000 is still lower than many other OECD countries including Australia & although the National Govt's Brightline tax has new been extended to 10 years, Adern has ruled out introducing any new capital gains taxes, and there has been zero mention of any changes to taxes around Retirement companies.
With latest bank deposit rates falling to 1% or less, others like myself are still looking at buying houses as an attractive investment & I can't see there's going to be a rush for the door by property investors crashing the market.
So excuse my little rant for the day, I really do respect and very much appreciate everyone's opinions on here & its easy to get caught defending a position or being labeled or pigeon holed which is always a lazy way of thinking as things are always much more complex & shades of grey than black & white, but just felt I had something to say.

[Cyclical]

Goodness gracious - the much revered Tony Alexander best guess is that property prices on average will fall about 10% and will bottom out some time after the middle of the year

What was it someone said the other day with regards to economists, blindfolds and dartboards?

[Waltzing]

The comments regarding the social side effects of high housing prices to income may not be what we have been commenting on.

Its the technical properties of the remedy and its wider aspects.

For a % of the population that are accountants and business investors its the wider technical aspect of the remedy that is the problem not the outcome.

Economists are not trained accountants and sometimes are like science researchers using any number of algo's that are not as practical as the original practitioner, Muḥammad ibn Mūsā al-Khwārizmī.

[winner69]

Waltzing - there’s a new breed of professionals these days - accountonomist

They meld the best of accounting and economic thinking.

I think beagle is on the path to becoming a top rate accountonomist

[Waltzing]

"accountonomist"

ok can you please tell us how to correctly pronounce this.

Sounds very like an Anatomist.

I do think you may be on to a new science.

[winner69]

A year ago beagle said this about OCA - The best analogy I can come up with is being invested in this company is analogous to driving a car with the handbrake on, (with that handbrake quite clearly being the intensity of the care services provided and the rapidly increasing cost of doing so).

Seems the handbrake is still well and truly on ...and the engine seems to losing oomph as well.