What is wrong with Victorian Retirement Villages

The critical importance of retirement village resident submissions to Victorian state government inquiries is that they are actually living the experience not simply 'working in the field'. They know what is wrong because they have experienced it, suffered from it.

Victorian retirement village residents find that there is almost zero protection when something goes wrong, or the system to obtain that protection is so cumbersome, so demanding on them, that surrender is ultimately the chosen option. And village operators know that and use it to their own financial advantage.

All this from a Victorian Labor government that fails to enforce the law as it is currently written, let alone to improve it to protect the very people it was originally written to protect.

"The law was clearly on the side of the village residents. It was a lack of access to affordable, quick, decisive enforcement of the law that failed them most". - Retvilldotnet

Retirement villages, the process of for-profit operators seeking financial reward from this commercial activity under the guise of the provision of benevolent housing for older Victorians. Sadly and particularly in Victoria the commercial risks to operators are dampened by statute whilst at the same time the commercial rewards are enhanced by statute. 

For Victorian retirees who make that fateful decision to enter a retirement village it is the complete opposite. The payment of the capital value of the village unit, not for ownership simply occupancy. The payment of all the costs of property ownership with none of the rewards.

"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 corporations. Shame about the elderly not having enough money for aged care."

So what is wrong with Victorian Retirement villages, the answer is -

1. Bureaucrats who don't really know or fully understand the product they are producing legislation for.
2. Legislators who don't really know or fully understand the product they are enacting legislation for.
3. State Governments who are far too easily seduced by slick marketing from the industry.
4. A failure of all of the three parties above to listen to the one group of people who really do know and fully understand the product, the village residents and their families. 

Village residents understand because they suffer financially from the legislative inequities produced by Bureaucrats, Legislators, State Governments.

Retirement Villages Look Before You Leap

When it comes to Victorian retirement villages the old adage of Look Before You Leap has never been more true. 

The new Jacinta Allan, Nick Staikos, Consumer Affairs Victoria operator centric 2025 version of the retirement villages act makes it even more imperative.

Research, research, research, the best outcome may be not to leap at all.

 

Retirement Village Reforms Petition Reaches First 100 Signatures

A consumer driven retirement village reforms petition reaches first 100 signatures.

Retirement village resident Les Scobie started an on-line petition to all governments pushing for meaningful reforms to retirement village laws throughout Australia.

The on-line petition can be reached at this link - https://www.communityrun.org/petitions/retirement-village-reforms

His petition places particular emphasis on the following areas -

Implement retirement village reforms inclusive of the following:-
1. Create greater fairness in the financial outcomes for residents for the provision of residential accommodation to older Australians.
2. Total revision of all Retirement Villages Legislation.
3. Easier access to the law for residents through the appointment of an industry Ombudsman.
4. Simpler contracts.
5. Greater clarity as to who is responsible for ongoing costs.
6. Amendment to the legislated definition of a retirement village to enable occupancy by way of a Residential Tenancies Agreement.
7. Outlaw the Deferred Management Fee model where the in-going fee does not reflect a relevant discount to the asking price of a commensurate property within the general community.

Having reached the first 100 signatures Mr. Scobie now wants to move to 200, 300 and beyond so as to send a firm message to both state and federal governments.

In a recent article in his home town newspaper entitled 'Retirees Beware' Mr. Scobie spoke of the pressing need for such reforms based on his own lived experience and his background in finance. - https://wangarattachronicle.com.au/2018/04/11/retirees-beware/

Mr. Scobie has produced tables showing the potential devastating impact on the capital value of a retiree from living in a retirement village.

Retirement Village Reforms Petition Reaches First 100 Signatures

The on-line petition can be reached at this link - https://www.communityrun.org/petitions/retirement-village-reforms



 

Lendlease Leads With Retirement Village Innovation

Lendlease leads with Retirement Village innovation, the Weekly Source reports:-

"Following 12 months of testing, Lendlease has revealed its consumer choice of four retirement village contracts:

1. Traditional DMF – “Hold on to your cash now by deferring payment of fees until you leave the village”;


2. Prepaid Plan – “Enjoy the certainty of paying the management fee upfront when you enter the village. Retain capital gain”;


3. Refundable contribution – “Feel secure knowing your money is guaranteed and don’t pay a management fee – instead pay a higher contribution on entry that is refunded when you leave”; and


4. Pay As You Go – “Pay a monthly contribution rather than a lump sum management fee”.

The detail on each plan.

Traditional DMF

Average of 30-35% DMF on the resale price after seven years. 1-2% sales commission. $10-15,000 refurbishment fee with option to upgrade at between $50-70,000 to maximise resale price.

Prepaid plan

Pay an upfront fee of around 18% and receive 100% of the sale value when leaving the village (less reinstatement costs, selling costs etc). For example, a $500,000 DMF home will cost $590,000 upfront. After 10 years if it sells for $1 million the departing resident will receive the $1 million.

Roughly one in five customers have taken this option over the 12 month test.

Refundable contribution

Pay a higher ingoing contribution and Lendlease will provide a ‘money back guarantee’ on a set amount when you depart. An example is a $500,000 home may have a $650,000 guarantee when you leave, paid within 60 days. There are no selling fees at the end but you do pay an upfront establishment fee of 3% ($15,000 in this example).

In addition to certainty for the family on the cash settlement, there is the certainty of funding residential aged care.

Pay as you go

Developed for customers (and their families) who may not wish to sell the family home or are managing their investment income.

Still under the Retirement Villages Act, they will receive a lease (currently five years) and pay rent with no upfront payment and no departure fee or payment.

The rent will be above the local market, reflecting the community facilities enjoyed and management support. They will also pay the same ongoing fees as the rest of the village residents on top of their rental fees.

The ‘pay as you go’ alternative is currently only available for serviced apartments during the test phase but is intended to be rolled out to the wider village home market."

Read the full story here:- Lendlease to lead consumer RV innovation with DMF alternatives

Lendlease Leads With Retirement Village Innovation

Technology Helps with Distance Caring for Seniors

Technology Helps with Distance Caring for Seniors - By Lydia Chan from www.alzheimerscaregiver.net

A senior’s caregiver, such as an adult child, often can find the care giving task stressful and exhausting. Also, it can be scary when the caregiver is not able to be with the senior 24/7, as is the case for most people. With the cost of nursing home care rising every year to astronomical rates, many are looking for cheaper, but still effective, ways to provide care. One way to reduce costs is to find a solution that allows a senior to stay at their home. This trend of senior care facilitated to a large extent by technology. Here are some tips on how to take advantage of today’s technology to care for your senior loved ones from afar.

Photo Credit: Pexels

Technology such as wellness system trackers and smart home appliances permit remote monitoring of seniors. For example, the Nest camera systems can be positioned throughout a senior's home so that children can remotely check in on their senior parent. These cameras can also send notifications when there are visitors and can be set to alert when motion is detected. The cameras record data in the cloud, which can be configured to archive for a particular period. Live feeds and video files are accessed through a website or smartphone app. It can be reassuring for a caregiver to be able to open their phone and see that their loved one is safe.

Other technologies can help with tracking medication by providing reminders to both the caretaker and senior. And technology can help seniors who have dementia, as well. A particularly ingenious app, designed by a 12-year old granddaughter, addresses forgetfulness by setting alerts when it notices repetitive phone behavior - such as calling the same number over and over - and integrates facial recognition to prompt the user, too. Often an Alzheimer's patient recognizes the face of a loved one but cannot call up their name. This app may be an excellent tool for assisting those with memory loss.

And technology is not only about keeping tabs on mom or dad it’s also about giving them quality of life. Tablets are so intuitive that practically anyone can master them. Their ease of use enables seniors to play games, listen to music, browse news and stay up-to-date with family and friends through social media.

Tablets, smartphone and smart TVs also encourage communication in ways that connect people much more closely than with just voices. Video calling encourages face-to-face interaction between a senior and different family members. Since grandchildren and other relatives can be spread out over geographic areas, the ability for the senior to connect is priceless.

A problem with the senior community that is often overlooked is the existence of substance abuse either in the past or as a continuing struggle. Some of these technologies can help by allowing others to monitor activity but can also aid by reconnecting family members who may have been hurt by a senior's prior addiction. Video chat can be a way for old wounds to heal gradually.

Like many aspects of out life, technology has the ability to improve senior care. It provides levels of monitoring and connectedness that are almost as effective as living with a senior. These apps and devices allow caregivers to lead a less burdened life, while resting assured of their loved one's health and safety. At the same time, the technology permits a senior to retain the dignity of living on one's own. Until such time that the senior's health requires assisted living, families can take advantage of new technologies for monitoring, safety and more.

Technology Helps with Distance Caring for Seniors

By Lydia Chan from www.alzheimerscaregiver.net

 

[blog_subscription_form]