Aveo's existing retirement unit sales slump 42 per cent

 

Aveo's existing retirement unit sales slump 42 per cent.

Melbourne age reports:-

"Controversial listed retirement village owner Aveo has reported a 42 per cent dive in sales of existing retirement village units while the company conceded it had done little to improve the financial outcomes for the thousands of its residents still on old and allegedly unfair contracts.

The sale slump came after a joint Fairfax Media and Four Corners investigation in 2017 uncovered a litany of questionable business practices at Aveo including churning of residents, fee gouging, safety issues and misleading marketing promises, such as safety and emergency services.

Mr Grady said the declines were driven by "negative media sentiment" about the retirement sector and the drop off in existing residents willing to recommend buying an Aveo unit to their family and friends.

"It’s not that they’re not happy, they’re just very cautious about making that recommendation to friends and family," Mr Grady said.

In response to the media reports, Aveo sunk $3 million into advertising to salvage its brand and another $8.5 million on advertising on new development projects. It expects to spend $17 million by the end of year on advertising.
During the first half of 2018, the company's profit contribution from its established retirement business fell 25 per cent to $26.4 million."

Aveo's existing retirement unit sales slump 42 per cent.

Read the full story here:- Aveo sales slump

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WA Takes Action Against Retirement Village

WA Takes Action Against Retirement Village

The Western Australian Government has taken action against a retirement village for failing to issue the appropriate documentation to prospective residents.

This is in stark contrast to Consumer Affairs Victoria who took no action for a similar situation but on a larger scale. The result being that residents in the rural Victorian village will receive a negative financial imposition in the collective order of $1.5m at present day values to the financial advantage of the operator of the same amount. Read the full story here :- Consumer Affairs Victoria asleep at the wheel?

In a February 7 2018 press release issued by the WA Department of Mines, Industry Regulation and Safety -

"The owner of a Mandurah retirement village has been fined $5,000 by the Perth Magistrates Court for failing to provide specific information to prospective residents prior to them signing contracts.

Under the Act, a prescribed ‘Form 1’ containing specific information relating to the retirement village, a notice of rights, a copy of the residence rules, a copy of any applicable code and any other prescribed documents are to be supplied by the retirement village owner at least ten working days prior to a contract being signed.

Commissioner for Consumer Protection David Hillyard said this requirement is designed to provide transparency in retirement village contracts.

“Getting the prescribed information and having its receipt acknowledged ensures that potential residents have all the information they need at their fingertips to make an informed decision,” Mr Hillyard said.

“Entering into a retirement village contract is a major lifestyle decision for our community and their families, so these laws are crucial to make sure potential residents have specific and essential information before signing.

“Failing to provide the information in the form prescribed by retirement village regulations is not acceptable and village owners who do not comply may face action by Consumer Protection.”"

Read the full story here:- Mandurah retirement village has been fined $5,000 by the Perth Magistrates Court



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Prisoners Fed Better than Aged

Prisoners Fed Better than Aged

News.com.au reports -

"Prisoners fed better than Aussies in aged care homes.

GUINEA pigs have better meals than these Aussies, says a leading medical chief, after shocking new data shows they are being fed on just $6 a day.

AUSTRALIAN pensioners are fed on just $6 a day, according to shocking new statistics which the AMA president has called a “national disgrace”.

The “wholly inadequate’’ sum of money is less than Australian prisoners get for their meals and medical chief Michael Gannon says more money is spent on his guinea pigs’ food.

“My children’s guinea pigs get fresh ingredients and more money spent on them,’’ AMA President, Mr Gannon told the Courier-Mail. “It’s a national disgrace the way we treat our aged.”

The study, written by Bond University dietitian Cherie Hugo and accountants Stewart Brown, shows that, despite aged care homes reaping in $1 billion in profits last year, they spent $6.08 per resident, on average, to provide three meals a day.

It also shows that prisons spend an average of $8.25 per prisoner per day on food.

The research study, which was based on the financial reports from 817 aged care providers for 64,256 residents, states that half of these residents suffer from malnutrition.

It found that nursing homes cut spending on food by 30 cents per resident last year.

Read the full story here :- Prisoners fed better than Aussies in aged care homes

Prisoners Fed Better than Aged "



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Retirement Housing Advice and Advocacy Program

Retirement Housing Advice and Advocacy Program.

The Senior Newspaper reports -

"HELP is at hand for Victorian seniors weighing up their living options with the launch of an advice service to guide people through the retirement housing maze.

The state’s first service dedicated to supporting people in retirement housing has been set up by not-for-profit community group Housing for the Aged Action Group (HAAG).

Co-manager Fiona York said the Retirement Housing Advice and Advocacy Program offers help to seniors living in caravan and residential villages, retirement villages and rental villages across Victoria.

Residents must be 55 and over with some form of financial disadvantage or receiving a Centrelink benefit.  The service can also provide advice on housing options, including things to look out for when considering entering a retirement village.

“HAAG has been assisting residents in retirement housing for a number of years but this is the first time a specific program has been provided by government in the retirement housing space,” Ms York said.

“HAAG’s knowledge and expertise gained over 15 years of working directly with residents have made it an ideal organisation to take on this role.”"

See full article here - HAAG Retirement Housing Program

Retirement Housing Advice and Advocacy Program.



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Transfer of Family Wealth to Large Multinationals

Concerns are being raised amongst retirement village representative bodies as to the excessive transfer of family wealth to large multinationals.

President of the NSW Retirement Villages Residents Association Tom Gait is quoted "Families need to be aware that what we are talking about here is the transfer of intergenerational wealth, not to families, but into the pockets of large multinationals. Shame about elderly people not having enough money for aged care,".

The table below gives an example where $1,030,045.30 is no longer destined for the family but is now in the hands of the retirement village operator, all this after just 7 years of retirement village occupancy.



https://youtu.be/4tF-_Mp1fF0

Transfer of Family Wealth to Large Multinationals.

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Housing Regulatory Fears Unfounded

Domain.com.au reports - Housing Regulatory Fears Unfounded

Fears increased regulation for landlords would harm Australia’s housing market unfounded: AHURI report

Fears Australia’s housing market would suffer if landlords faced increased regulation are unfounded, an international review has found.

In countries with similar incentives for mum and dad investors, stronger regulations protecting tenants did not lead to a big drop-off in investors or subsequent house price falls, according to a new Australian Housing and Urban Research Institute (AHURI) report.

The view of increased tenancy regulation – such as capping rent increases and bringing an end to no-grounds terminations – as “red tape” that would drive investors away was out of step with the experiences of most countries, according to lead researcher Chris Martin, from the University of New South Wales’ City Futures Research Centre.

Read the full story here:- Regulatory Fears Unfounded

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