Retirement Villages.. Preying on the Elderly?

[Orks]

There are other forms of retirement living that are different to retirement villages but provide the same kind of lifestyle with Community Centres and over 55 age group, security, gardening etc. They are known as residential parks, and come under the Residential Parks Act of each state rather than the Retirement Villages Act. The main difference between the two types of villages is that in a residential park the resident owns their own house, but has no ownership of the land, they pay a fortnightly rent for the land, part of which is rebated by Centrelink as rent relief. There are no exit fees or deferred management fees, the resident is free to sell the house through the agent of their choice and takes full proceeds including any capital gain, only restriction being they have to sell to the same age group of 55+. The houses within these parks are generally considered to be transportable/mobile homes, and they can very in quality, but the better ones are just as good as any retirement village house.

Disclaimer - My family owns two such parks in SA.

 

[pully]

good luck strongman to you and your mother. completely understand her desire to feel safe in her home and sounds as if the new home will meet that need.

do let us know how it goes. it may also assist others. value of this forum is word of mouth personal experiences.

 

[peppy]

Hi Peppy

Welcome to Somersoft

Sounds like a better deal than some. What are the cost's and associated fees?

The fee monthly is 35% of the pension.
Nursing home fee is 85% of pension.

 

[weg]

Just came across this website which gives a brief rundown on the different types of accommodation, including supported living and community care services available in the different areas.

http://www.agedcareguide.com.au/retirement-living-information.asp?c=35&i=106

Also, read on the NSW fair trading website that there are cooling off periods for the different types of tenancies so worth checking with them in the state that the accommodation is in.

http://www.fairtrading.nsw.gov.au/p...ions/FT441_moving_into_retirement_village.pdf

Word of mouth, and directly speaking to multiple residence would also be advisable after doing all other DD.

I think as long as the person buying is fully informed and has research well, and they find it's a decent village and one that they like, then who cares if they're paying what appears to be a bit too much or someone's making a good profit from the business model.

 

[redwing]

From ABC's 7:30 Report

Families are being forced to pay fees to retirement villages even after the resident has moved out or passed away, thanks to long and complex contracts.

Transcript & Video Link

And from the below

Mosman retirement village charging thousands in service fees for clients years after they have died

While retirement villages are covered by state legislation, chief executive of the NSW branch of Council of the Ageing (COTA) Ian Day says the problem is widespread across the country.

He urges people to understand what they are purchasing.

"You can't think of a retirement village as an asset," he said.

"Homes can appreciate in value and you can improve your net worth.

"You will never improve your net worth through a retirement village."

 

[Aaron Sice]

sounds like a lease-for-life with a MASSIVE exit fee.

i'm involved with www.collegepark.com.au and it's just a simple strata with a body corp managed community centre. it's your to own for life, pass down, etc

lease for life is just disgusting.