RYM - Ryman Healthcare

[percy]

Anyone wanting to learn "the truth" about the retirement village sector, would be well advised to read this week's "Taking Stock" at www.chrislee.co.nz.

[777]

Anyone wanting to learn "the truth" about the retirement village sector, would be well advised to read this week's "Taking Stock" at www.chrislee.co.nz.

https://www.chrislee.co.nz/taking-stock

[percy]

https://www.chrislee.co.nz/taking-stock

Thank you for posting the link.

[Bjauck]

Good explanation as to why villages remain popular with incoming residents. He praises the changes in MET, which is good to hear (Disc: I own MET shares!)I liked his mentioning the sustainability of the business model of the listed operators.

However, he did not seem to know why a young reporter would regard someone owning a mortgage free house of $500,000 as rich. Even raising a deposit to buy is difficult for young buyers today. House prices have increased by more thanthe increase in incomes. So to a young reporter owning a house seems out of reach. To a young reporter $500,000 could well represent much more than they would be able to save in a lifetime on their current after tax salary and and after rent and other expenses. That would be why they think someone with $500,000 is rich. One must wonder - will the extra-inflationary increase in land values owing to the drop in interest rates continue or will the next change be a deflationary one, due to an increase in interest rates?

[babymonster]

depending on how you define rich tho.. if you use income as a measure (usually newspaper uses this as a measure), retired people are not.. but if you use net asset, maybe they are..

[Bjauck]

depending on how you define rich tho.. if you use income as a measure (usually newspaper uses this as a measure), retired people are not.. but if you use net asset, maybe they are..

To most (young and not so young) people having a mortgage free $500,000 house is rich. Although in Auckland you would be lucky to find many properties at that price, which shows how ridiculous prices are in Auckland.

Often the retired may be asset rich but cash poor. You can also be rich in knowledge but poor in financial assets! Generally a rich person is one who has unencumbered assets. If you have a high income but it all goes on expenses without any ability to save or amass investments, you may be a high earner but you are not rich. You can have a high income in Auckland but with most of your after tax income being eaten up by the high rent and transport costs....so it is the number of valuable assets that you can accumulate that makes you rich or not.

[Under Surveillance]

https://www.chrislee.co.nz/taking-stock

Good read, although there's an element of "fake news" in it. Lee says Rymans require incomers to be 75, whereas the truth is they need to be 70.

By the by, the outfit Lee chairs, the Parkland Retirement Village Waikanae, is big scale. 25 hectares, 209 villas, 54 rest home apartments, hospital care, ..

[Yoda]

Are we going to breakout this time?
it seems to be taking off a bit lately and reaching its previous highs. A reasonable profit should see it at $11 or 12 next year ?

[silu]

Similar trend across the industry. Despite all the short term discussions in the aged care sector about failing house prices, leaky buildings, increased staff costs etc its a stock that I'm happy to hold for the next 10-20 years.

[dabsman]

I'd like to see it go thru $10 and hold over for a bit. Aussie is a big point of differentiation to the other sector players - happy to hold this long term too. I'd love a share split but at what price point would they look at that?