OCA - Oceania Group - retirement villages

[Bjauck]

Directors buying millions and hundreds of thousands of shares, that's encouraging! Always happy to see insiders buying into the company, a huge vote of confidence, and a couple of very large stakes at that.

A caveat for that is that The insiders would have subscribed to their new shares in the placement prior to the announcement of the bold new tax policy with respect to mortgage interest and bright-line for landlords.

[Brain]

Looks like Justakiwi is no longer a member . Maybe that was her decision after being threatened with legal action. I guess if that was done to me I possibly would decide to become an observer rather than a participant. Great shame as it was good to get someone’s opinion from the coal face.

[percy]

Looks like Justakiwi is no longer a member . Maybe that was her decision after being threatened with legal action. I guess if that was done to me I possibly would decide to become an observer rather than a participant. Great shame as it was good to get someone’s opinion from the coal face.

Hopefully Justakiwi will be back tomorrow.

[herbert240]

And Beagle?

[percy]

And Beagle?

I do not know.

[Blue Skies]

Here's a link to todays opinion piece in Stuff, on the intense heavy duty lobbying going on by the NZPIF (NZ property investors federation) attempting to scare the public & get the govt to reverse extending the Brightline test & ending interest deductibility for investors.

As an Otago Research Fellow says, the impression being given by investor commentary was the sky had fallen & a lot of catastrophising going on, and we certainly had some of that on this thread with baseless speculation about worse case scenarios almost being presented as a fait accompli, & the govt being framed as scary socialist, redistributing your wealth etc.

If there has been some heavy lobbying going on, it would explain how those representing the interests of property investors have been given such an overly pessimistic outlook on property valuations by their clients & even possibly how some of that ended up here.

That pessimistic commentary has almost certainly had an impact on the SP of OCA & other retirement companies.

One point I find interesting is the advantage investors had over owner occupiers, with investors being able to claim interest deductions against rental income but owner occupiers in the vast majority of cases unable to claim interest deductions against their income unless they had specially arranged their affairs in order to get around this. And why this should be.
The immediately obvious answer is one is a business, while the other is not, but in another sense we are all our own businesses with income & expenses.
Following the removal it is now an even playing field.

Also find it interesting & a bit disheartening to hear within days a few clever lawyers already confident they can find ways to rearrange affairs in order to get around the changes to policy.



https://www.stuff.co.nz/life-style/h...economist-says

[850man]

Removal of interest costs as an expense against revenue attacks the very heart of business taxation that dates back a hundred years. Every business can and does offset interest costs of money borrowed to buy a capital asset against revenue earnt when working out profit for tax purposes. Every business except now that of residential property rental. This is not leveling the playing field, it is tipping it severely against one business type.

[nztx]

Removal of interest costs as an expense against revenue attacks the very heart of business taxation that dates back a hundred years. Every business can and does offset interest costs of money borrowed to buy a capital asset against revenue earnt when working out profit for tax purposes. Every business except now that of residential property rental. This is not leveling the playing field, it is tipping it severely against one business type.

Agree with that summary of things..

Where will similar munted political judgement strike next though ?

but as with the generous Nearly everyone qualifies Covid Wage subsidies -- any smart Accountant with a few clues should be able
to drive any sized tractor (or a large fleet of tractors) through the gap quite happily ..

The sign of the High Quality Politicians & Lawmakers currently in .. once again showing themselves up as totally
out of their depth, ignorant & inept .. and totally lost on what the original issue / problem needing solving was..

The smaller novice RE Investor bods with just one or two plots will be the ones that wear things .. IMO ..

Why dont Govt just remove financing costs deductions for any sort of property transaction as a blanket move and wait
to see exactly what does for them .. ?

Just about anyone could predict how well that is likely to go & the likely results ..

[nztx]

Oh yes .. for the record I'm now an OCA spectator..

[Blue Skies]

Removal of interest costs as an expense against revenue attacks the very heart of business taxation that dates back a hundred years. Every business can and does offset interest costs of money borrowed to buy a capital asset against revenue earnt when working out profit for tax purposes. Every business except now that of residential property rental. This is not leveling the playing field, it is tipping it severely against one business type.

Talking about level as in level for both investors & owner occupiers now, not residential property rental V other types of business.

Don't you think when investors are given a strong advantage over owner occupiers, its tilts the field in their direction which is what we've been seeing with FHB'ers constantly being outbid by investors in the auction rooms ?
Im interested in others opinions.