OCA - Oceania Group - retirement villages

[warren]

[QUOTE=Beagle;718850]I beg to differ mate.

Umm. I agree 100% with you Beagle. And as I see it OCA Aged Healthcare with 3000 superb employees, huge demand and guaranteed Government cash flow/income is as good as it can get in hard times. While I well know the aged care income (in which OCA is a huge player) is hard earned and not, shall we say, flash and some say not so profitable, I love it to bits. I'm hoping by 2025 OCA will have 6000+ employees in Aged Care nursing with the current income ratios maintained across the income streams. Then we will have some business!! All that's then needed for sustained profitability is careful, exacting, honest leadership and to date they are proving it.

[Jantar]

....
Nothing to worry about in my opinion. I hear just what Percy alluded too. People who are presenting their homes well and pricing them realistically are having little to no trouble selling them. .....

I cannot believe the prices that are being asked, and getting, for houses. My wife and I have been looking at buying our retirement home, and almost all the properties we are looking at in our price range are not well presented and need a lot spent on maintenance. Instead we have decided to buy a section and build new. A better quality house that has everything we need, in a prime location and cheaper than buying an existing house. How does that work?

[Beagle]

Umm. I agree 100% with you Beagle. And as I see it OCA Aged Healthcare with 3000 superb employees, huge demand and guaranteed Government cash flow/income is as good as it can get in hard times. While I well know the aged care income (in which OCA is a huge player) is hard earned and not, shall we say, flash and some say not so profitable, I love it to bits. I'm hoping by 2025 OCA will have 6000+ employees in Aged Care nursing with the current income ratios maintained across the income streams. Then we will have some business!! All that's then needed for sustained profitability is careful, exacting, honest leadership and to date they are proving it.

Apart from being a cheap value play in this field the thing that really gives me the warm fuzzies about this company is their multi award winning second to none care standards. Sure there will always be the odd mistake as the people looking after our old folks are human just like the rest of us but overall their systems, procedures and standards appear to be second to none and it pleases me to be part owner of a company that really looks after our most vulnerable elderly folks. Ethical investing 101.

[Beagle]

I cannot believe the prices that are being asked, and getting, for houses. My wife and I have been looking at buying our retirement home, and almost all the properties we are looking at in our price range are not well presented and need a lot spent on maintenance. Instead we have decided to buy a section and build new. A better quality house that has everything we need, in a prime location and cheaper than buying an existing house. How does that work?

I think its very much location dependent. We have two sections nearby in Auckland where we live and can't sell them because it doesn't work. Building prices in Auckland have gone mad and its cheaper to buy an existing house for the average circa $850K - $900K than buy one of our sections and build a say 220 sq m house on it. Cheaper by about $200K but as you say if someone does that they get a brand new home designed exactly the way they want it. Mrs Beagle's experience dealing with potential buyers is the vast majority of people are too scared to build in Auckland at present, (well... too scared on a sloping Titirangi bush section anyway). If anyone's in the market for a very nice Titirangi section or two for about $400K each please PM me. We're highly motivated vendors.

[warren]

Easy explanation. If I gained 70 000 new customers, with cash, every single year I would put my prices up thru the roof too. Remember those new customers --------
1. Think $800 000+ is cheap for a house (you try Hong Kong, Singapore, Delhi, Shanghai)
2. Are completely out of the--- buy a section, hire a builder, build a NZ house, meet NZ rules/laws for at least 5 years maybe a lot longer.
3. This nation remains a migrant heaven, free health, old age pension for all, no CG., free education etc so she aint gonna slow down.

[winner69]

Stupid question - can the reported 'embedded value' go down seeing its only a snapshot at a particular time

[Beagle]

Stupid question - can the reported 'embedded value' go down seeing its only a snapshot at a particular time

Yes absolutely if the market overall falls on average right across the country, year on year from one balance date to the next but why would it at a national average level when you look at those REINZ national stat's I posted a link for ?

[Food4Thought]

Easy explanation. If I gained 70 000 new customers, with cash, every single year I would put my prices up thru the roof too. Remember those new customers --------
1. Think $800 000+ is cheap for a house (you try Hong Kong, Singapore, Delhi, Shanghai)
2. Are completely out of the--- buy a section, hire a builder, build a NZ house, meet NZ rules/laws for at least 5 years maybe a lot longer.
3. This nation remains a migrant heaven, free health, old age pension for all, no CG., free education etc so she aint gonna slow down.

Yes Warren. Totally agree. Frightening even in regard to the average kiwi. It's one tough market where a steady progress in a career use to ensure a more manageable path to get into the property market. Many people and some close friends are out of reach of ownership for their first buy. Even with years of work experience. .. After paying university and considerable increases in living costs. If they want to buy near their work, where they grew up, or made strong ties while studying... yes they could move to a rural Township. ... and isolate themselves ... or perhaps over the ditch.

And I agree with the statement of not keen to build etc until they have the knowledge and local experience.

... I keep thinking. Silver Tsunami. And those who can afford it will then also visit Australia when the winter months are not managable or suitable for their retirement plans. GIANT in the room. Privalaged retirement country... strengths, weaknesses, opportunities and threats.

[Xerof]

I do note someone that appears to want to sell, doesn't really - they keep moving the offer 2 steps higher than market.......pathetic capping attempt

haha, Henry Clayton, who was sitting behind the 1.11 offers at 1.12, has moved up to 1.13 behind the 1.12 now. Haha

[Lawstudent05]

haha, Henry Clayton, who was sitting behind the 1.11 offers at 1.12, has moved up to 1.13 behind the 1.12 now. Haha

Hi All, could someone give some logic behind the comment of a capping attempt? Just trying to understand what this means, logic says someone is slowly selling to keep it at a cap level? Whats the purpose of this?

1.11, all time high today, looking forward to seeing the FY results in the next month or so. My records show a 41% gain from IPO launch.