Don't think a downturn in the housing market would give you cause for concern. You still have to live somewhere and the aged usually need to down size irrespective of market conditions. LIC's model of leasing the land offers an opportunity to have a wee cash surplus once the larger former home is sold.
Ryman (NZX:RYM) is arguably the best NZ retirement home operator and they are beginning to enter the Victoria market. Their business model is different to LIC's and they aim for a higher socio-economic retiree. They only do greenfield developments.
LIC Price at posting:
$3.01 Sentiment: None Disclosure: Not Held
