Was down visiting the in-laws over last couple of days and m-in-law works in aged care sector. A couple of things i gleened from her when asking about the sector 1/ the money being put in by government to assist with home care vs going into a nursing home is poorly targeted, grossly insufficient and there are alot of retirees who if they want to stay at home are paying a fortune to do so, because of ineligability. Therefore their age care facilities are bursting at the seams ( i smell money to be made). 2/ they have ceased providing home care for NDIS customer due to fees from NDIS being insufficient to cover costs of providing in home care.3/ The sector has staff shortages and the level of care in nursing homes has deteriorated over the years due to a big increase in clients per staff member.
I am thinking that an RC will discover the government funding of the sector is insufficient and retirees who have health issues and need higher levels of assistance are going to have to cough up in most cases for it themselves as the government has not had the forsight to squirrel away enough funds to give the sector the level of support it deserves.
It made me think of my personal situation as i have a chronic spinal condition which is getting worse with age. I am still along way off retirement and will be incapacitated to a level that in the future may require higher levels of care. Now I live in a rural town and so wont have the backing of a city house and relevant valuation to fall back on , so will need to ensure my super has as much in it as possible to cover all possible senarios.
I believe the aged care sector will get more government assistance going forward and an RC may actually find options to better target these funds to get best bang for buck.
Problem is whilst alot of the baby boomer generation have made sure their retirment funds are sufficient to cover all scenarios, there are alot who are not in a financially secure situation to cover these costs and being voters will undoubtedly support any government who puts more funds into the sector ( and baby boomers are the largest demorgraphic group) , but by the time us gen xers get around to retirement, there may be no cash in the kitty and it will strictly be user pays .
On the retirement lifestyle living side of things, with the baby boomers demorgraphic, there will still be large demand for products supplied by aveo and although we may see some negative price adjustments in Sydney and Melbourne due to general market forces, i cant see any real headwinds for other states. I was suprised at how many lifestyle places there were on the Mornington Peninsular, and also the week before when i was on the Sunshine Coast for a short holiday, both places had a retiree vibe, but i would suggest they were mainly rich retirees based on observations when dinjng out and shopping.
Christopher
AOG Price at posting:
$1.64 Sentiment: Buy Disclosure: Held
