Alan Kohler is arguably the most highly regarded finance journalist in Australia. He operates his own finance/investment newsletter as well as features nightly on the ABC news and in Fairfax publications. Last year he published the following personal item:
“My parents are moving into a retirement village owned by Primelife Corporation. It is a wonderful place – and hugely profitable for Primelife. After they bought a 49 year lease on a unit for $260,000; the company takes a monthly fee, plus a deferred fee of 25% of the original purchase price when the lease is onsold, plus 75% of any capital gain. Primelife is expanding rapidly and demand is strong.
I don't mind my parents going into a deferred arrangement with Primelife Corporation because I want them to be happy and comfortable in their old age, and I know they will be. All of their friends are going into the same or similar villages. I'm sure most children in my position would feel the same. By buying shares in these type of companies, you are investing in the companies that will collect the money when our parents move into a nursing home or pass away.
I have personally invested in FKP Property Group (the owners of Aveo) because of the quality of its management and the spread of its businesses.”