Retirement Village Deception

The great retirement village deception, the use of words like 'buy' and 'purchase' deceive the retiree
into believing an exchange of ownership will take place. In fact the retiree has merely made a 'loan' to the operator at 0% interest. This loan on far too many occasions is equivalent to or near to equivalent to the purchase value of a similar standard unit with the generally community.

The loan has three key features all detrimental to the retiree,

1. Village residents can lose as much as 40% of the original 0% loan amount through a poorly named 'Deferred Management Fee', this fee is accumulated over the initial years of occupancy.
2. Inflation over the period of occupancy can devastate the $ value of the refundable amount of the original loan. (The refundable amount being the value of the initial loan minus the value of the deferred management fee.)
3. Outgoing residents can wait weeks, months to get back the refundable portion of their loan after their departure from the village.

Loan/Lease Retirement Village - Resident Funded – 74% of the marketplace

• Development of the village funded by the retirees with 0% loans to developer/owner.


• Retiree loans a $ sum, in the order of a 'buy' price, at 0% interest to the developer/owner in exchange for conditional occupancy, not ownership.


• Village residents despite only occupancy not ownership, pay all the management costs, maintenance costs, municipal rates, renovation costs, selling costs.


• Village residents despite only occupancy not ownership, can lose as much as 40% of the original 0% loan amount through a poorly named 'Deferred Management Fee', this fee is accumulated over the initial years of occupancy.


• The shorter the occupancy period the more devastating the Deferred Management Fee becomes on the $ amount of the refundable portion of the 0% loan.


• The longer the occupancy the more devastating inflation becomes on the $ value of the refundable portion of the 0% loan.


• In the order of 50% of developers/owners deny retirees access to any unit capital gain.


• Enforced by legislation retirees can wait weeks, months to get back the refundable portion of their loan after their departure from the village.

Fundamental Problems With Retirement Income System

YourLifeChoices reports - Biggest trap for retirees? Our entire retirement income system

YourLifeChoices states, "Australia must confront fundamental problems with its retirement income system."


Noting in their article the following major points -

• "Of the 36 OECD (developed) countries, Australia has the sixth highest rate of poverty in retirement."

• "Super tax concessions are worth $41 billion per year. The richest 20 per cent of retirees get 60 per cent. The bottom half get just 11 per cent."

• "The cost of super tax concessions will soon be larger than the cost of the Age Pension."

See full article here at this link - https://www.yourlifechoices.com.au/retirement/retirement-income/money-going-to-the-wrong-people

Money For Social Housing

The Grattan Institute reports - Money for social housing, not home buyers grants, is the key to construction stimulus.

"There’s a better way to support residential construction without providing such big windfalls to developers: fund the building of more social housing.Social housing – where rents are typically capped at no more than 30% of household income – provides a safety net to vulnerable Australians.
In particular, the Morrison government should repeat another GFC-era policy, the Social Housing Initiative, under which 19,500 social housing units were built and another 80,000 refurbished over two years, at a cost of A$5.2 billion."

Read the full story here - https://grattan.edu.au/news/money-for-social-housing-not-home-buyers-grants-is-the-key-to-construction-stimulus/

Social Housing Demands

"Money for social housing, not home buyers grants, is the key to construction stimulus" #auspol #auspol2020 https://t.co/V8ZmNofw3m

— Les Scobie (@retvilldotnet) June 1, 2020