OCA - Oceania Group - retirement villages

[Bjauck]

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I’ve just been patient and learnt a lot since I started my investing journey at the age of 22... Took some early losses that near on wiped my savings out... thanks Hot Copper. But managed to progress in my career which super charged my savings.

It certainly helps having a successful career from which you can save the majority of your income. It sounds like you have carried that successful attitude to your investing too. You sound to be a dedicated young investor. It takes a steely resolve to come back after an early cold bath! Investors of your calibre will help NZ invest efficiently. I think NZD millionaires can call themselves millionaires too. A target which is not as hard as it used to be to achieve these days if you have been a NZ home owner for a couple of decades or so. However it does depend on how American-centric your points of reference are.

Ben if your asset valuation (including your owner occupied home) less liabilities are worth over a million NZ dollars, then you’d be millionaire too, IMO.

Addendum: I think $20,000 invested in A2 Milk Shares ten years ago would be worth $1,000,000 at today’s price.

[Habits]

Good effort!

I think Dobby is onto it, we all get there in different ways.
I'm asset rich, cash poor. I turned down 1.2m for my house (developer offer) which is a little over 330% gain from buying it in 2012.

We're starting our subdivision/development of the property this week, the valuations as complete came in yesterday at 2.75m for the three (stand alone) properties it's to become.
The new homes are being retained as rentals, we'll continue to occupy this one until we figure out what we want to do next.

Never been a landlord before so should be interesting...

Am I a millionaire if it's assets?

If you dont mind me asking whats your build budget all up for the 3 new homes, does the plan involve keeping the existing home or does that have to go. How does the official valuation compare with what you were thinking

You said first time LL ... also first time developer? Jumping in the deep end big time, I like that approach, learn fast

[thegreatestben]

I have a mortgage but have assets aside from my home that are worth more than it’s current balance.

We (GF & I) aren’t married, no kids. Both work full time, about double the average household income for nz, so we are in a good spot to become developers/landlords. Total cost is looking like 1.4m borrowing 1.3m. We paid cash for the planning and consent as we could keep up with costs from our income.

We are building two new homes and keeping the existing house but relocating it on site. We are also adding an internal access garage and reconfiguring the layout slightly, finishing off renovation I’ve already mostly completed.

New builds are 460ish a piece
Development works 130ish
Existing house 180ish
Design/planning/consents was 85k, I’m going to say this was low because our site is zoned medium density so our consent was non-notified.

Will leave us with no debt on personal home, rent per house should return about $750 a week. Waiting patiently to see what tax exemptions are for “new builds”.

Should be about 51|49 split in our favour from completion if values remain at 2.75m total. I think the valuations are light, especially the existing home but they 200k over my original aim when I got serious about doing this. More than adequate to get financing (anz commercial loan)

[Joh13]

Thanks very much for the kind words :-)
GLTA and happy investing!

[Habits]

Very well done TGB... and get the renos out of the way before having kids in amongst it, much less stress for you and wifey. Btw does 85k for consents etc include any DCs or are they described as devlpmt works?

[Rowdy Flat]

Ummm... is this the OCA thread or has it given over to mutual masturbation?

[thegreatestben]

Thanks, it’s nice to share good stories with positive reception. Hard not to come across as boasting sometimes!

85k includes, architect/designer who did all our plans, resource and building consent applications. Engineers, surveyor, valuations.

If you mean development contributions those are in the development works budget, $30k, 10k dev contribution, 20k reserves contribution.

Currently paying for all the service disconnection and reconnections plus contract works insurance for the existing house (ouch).

Have been slaving away doing as much as we can ourselves getting the site ready (demo) Haven’t had a day off in about 6 weeks, looking and feeling pretty tired.

[Habits]

Have been slaving away doing as much as we can ourselves getting the site ready (demo) Haven’t had a day off in about 6 weeks, looking and feeling pretty tired.

Been there too... after a few years or twenty you will be able to look back and feel pretty satisfied

[Maverick]

4 traders have 4 anylists following this now. All 4 are rating it as a buy. Average target is now $1.70
It is rare to see such uniformed enthusiasm for any stock.
Apart from traders cashing in from the recent burst, I recon youd have to have rocks in your head to be selling right now.

[850man]

4 traders have 4 anylists following this now. All 4 are rating it as a buy. Average target is now $1.70
It is rare to see such uniformed enthusiasm for any stock.
Apart from traders cashing in from the recent burst, I recon youd have to have rocks in your head to be selling right now.

quite a volume in the sell column with rocks in their heads right now