retirement villages

[aussierogue]

finally someone has written an article close to my heart. It seems a rort and yet these retirement villages claim they are not that profitable.

Anyway the process and the system sucks. I would like my dad to live in one but the costs are too high and just feel like everyone gets ripped off!

check out the link http://www.theage.com.au/victoria/paying-a-high-price-to-retire-20110121-1a02v.html

I think some of the forum members are investors in retirement villages and we have had some discussions before. As a consumer its a joke.

 

[yadreamin]

Thanks for that aussie.
Sadly we will be reading a lot more stories like this in the very near future. These so called retirement villages are or 99% of them are one hell of a rort. It causes so much stress to the residents as well as financial hardship. One group l have dealt with now try to focus on the Poms as prospective buyers. They dont seem to mind the tight living spaces..
The majority of front desk employees are stand over matron types that dont allow others to get a word in. The so called fees that are charged for very little service in return are criminal. The delay in repairs to the homes or facilities [resort style] would not be accepted anywhere else.
The contracts that one has to sign are very dark shades of grey.
They are able to get away with these practises only because the Govt doesnt want the problem themselves.

Dont let anyone you know be fooled by the the marketing and promises of a wonderful retirement.
cheers

 

[marg4000]

Parents-in-law moved into a retirement village in 1981. We did extensive research for them, and were amazed at the differences between villages, basically they all set their own rules.

Our main concern was, if they were not happy, they have enough money to get out and get something else. In many cases people become "trapped" in a complex as the money they get back is insufficient to buy elsewhere. In many cases the buy-back price is a percentage of the purchase price, giving all capital gains to the complex operators.

In the end the contract we negotiated gave them full strata title, ability to sell through any agent, retention of all capital gains, and the deferred management fees were limited to 10% of the selling price (apparently in new contracts this has increased).

This was a new village and the operators were very keen to sell a new villa. Fortunately for us there was a second-hand one for sale at the same time, which we used as a bargaining point to have the price lowered and several more items included.

The owners of the village are not doing very well. The financial model is for residents to stay for an average of 7 years. As people can go in from the age of 55, the "turnover" period is much greater than this in this village.

Father in law is still there. Unit value has gone from $135K purchase price to current selling prices around the very high $300Ks, so even at a deferred management fee of $40K max there is enough money to buy into nursing care if required.

We took advice from a solicitor experienced in retirement villages who confirmed that the contract presented was "one of the better ones" he had seen.

In another case, a friend's mother recently bought into a very upmarket retirement village. Cost $440K and they believe they will be lucky to get $200K back when she leaves.

As always, buyer beware. But older folk without family to look out for their interests can be very much at risk.
Marg

 

[pully]

yes we read the article too. very good and true.
it seems attractive at first to move into one of these lifestyle places, which some are referred to, but the devil is in the detail.
plus it is not easy to understand all the rules and conditions.
expert independent advice is important prior to signing as usual.

 

[aussierogue]

yes we read the article too. very good and true.
it seems attractive at first to move into one of these lifestyle places, which some are referred to, but the devil is in the detail.
plus it is not easy to understand all the rules and conditions.
expert independent advice is important prior to signing as usual.

thats the problem though - whats an expert gonnas tell you? dont sign? Then what? there arent too many other options for elderly looking for a little more comfort and some company. Too fit to get into a hostel, too lonely and tad unsure to be 100percent happy at home.

Maybe i need to build a bungalow out back - geez my wife will be wrapped - ha!

 

[yadreamin]

thats the problem though - for elderly and single/widowed looking for a little more comfort and some company. Too fit to get into a hostel, too lonely and tad unsure to be 100percent happy at home.

And thats exactly the selling speal they use and it works most of the time. So up pops an over 45s for those that are too fit too healthy to live in a retirement village. These are really flogged as "resort style"

Unfortunatley far too many that have bought into these joints have to keep their mouths shut about the actual conditions once you are in because they want to sell their house to get the hell out of there

Maybe i need to build a bungalow out back - geez my wife will be wrapped - ha!

I think this is a much better and safer idea
cheers

 

[weg]

For those that are thinking of this, Centerlink's 'granny flat' provision allows ma to gift 138K to family (can go towards buiding a granny flat ot not) without it affecting entitlements.

 

[Belu]

my grandparents are in one that has a service fee on sale of:

- cost of repairs and renovation
- plus 3% per year (max 10 years) of sale price