Crunch Numbers Before Entering Retirement Village

WAtoday in an article by Rachel Lane of Aged Care Gurus advises retirees to crunch numbers before entering retirement village.

"While it can be said that choice makes the transaction more complex, anytime you have choices there are factors to consider. If you are thinking about moving to a retirement village you should crunch the numbers, if the retirement village isn’t offering the payment method that suits you it doesn’t hurt to ask.

Having different payment options means the same unit can sell for a vastly different price depending which option you choose. It also means that if you can’t afford one price you may be able to afford another, bear in mind too that, unlike aged care, the money you pay to a retirement village isn’t guaranteed by the government.

Illawarra Retirement Trust has been providing payment alternatives since 1969. At their Harbourside village close to the beach in Kiama a one bedroom unit with “limited sea glimpses” sells for $257,000 as a donation, $534,000 as a bond, $380,000 with a 25 per cent exit fee or $461,000 with a 10 per cent exit fee. Or you can have a large three bedroom unit with sea views for $618,000 as a donation, $1,285,000 as a bond, $914,000 with a 25 per cent exit fee or $1,109,000 with a 10 per cent exit fee."

Read the full article here - Crunch the numbers before you commit to a retirement village

Crunch Numbers Before Entering Retirement Village

Please sign the petition for retirement village reforms.

Quick Fair Free Justice Access

Consumer Action Law Centre has launched their latest election platform for this November's Victorian State Election which calls on our state politicians to create quick fair free justice access for all Victorians.

Retirement Village residents have a particular interest in that part of the program that places emphasis on:-

No excuses: Victoria needs a Retirement Housing Ombudsman

"More than twelve months have passed since the release of the Victorian Parliament’s Inquiry into the Retirement Housing Sector that recommended the establishment of a Retirement Housing Ombudsman, yet older Victorians are no closer to seeing this critical reform.

Older Victorians living in retirement housing want a quick, easy and low-cost dispute resolution option when problems arise, including unfair fees and bullying. We hope that most residents will never need this service, but all Victorians will benefit from an Ombudsman by rebuilding confidence and trust in the retirement housing sector."

The program booklet can be downloaded here - Victorians need better access to quick, fair and free justice in 2018

 

DSCV Partner With VCAT

Victorian Civil Administrative Tribunal and Dispute Settlement Centre of Victoria announce an official partnership program between the two agencies. DSCV and VCAT will be enhancing access to justice for everyday Victorians through the Civil Mediation at VCAT program.

"The program will expand into regional areas over the next four years, with the first region being Barwon South West which will include matters heard at Geelong and Warrnambool.

Initially, the claim threshold for civil matters deemed suitable for mediation will be up to $3,000, gradually increasing over the four years to include matters up to $15,000. To support this, the listing of civil claims suitable for mediations will be expanded over time to five days per week.

“We are incredibly excited to work with our colleagues at VCAT to deliver a responsive and appropriate dispute resolution service for Victorians,” said DSCV Director Dahna Bond. “This program will deliver real benefit to the community by helping people resolve their issues in a timely and effective manner.”

To contact the DSCV team at VCAT, please visit our contact us page, or email the team."

DSCV Partner With VCAT

DSCV Assisting In Retirement Village Disputes

The Dispute Settlement Centre of Victoria advises DSCV assisting in retirement village disputes.

"DSCV will now provide appropriate dispute resolution services for retirement village residents or management who need assistance.

Previously, Consumer Affairs Victoria provided a conciliation service for disputes between a resident and a manager, while disputes between residents could be taken to DSCV.

Consumer Affairs Victoria will continue to educate retirement village operators and managers about their legal obligations, and address any breaches of the law. Residents and managers can still contact Consumer Affairs Victoria for information on their rights and responsibilities, including the steps they can take if there is a dispute.

Consumer Affairs Victoria recommends that residents and managers should first try to resolve any complaint or dispute through the village’s internal dispute resolution scheme.

For more information on legal obligations for retirement village operators and managers, visit the Consumer Affairs Victoria website.

For information about the range of dispute resolution services provided by DSCV, visit our mediation page."

DSCV Assisting In Retirement Village Disputes

ACCC retirement village probe stalls

YourLifeChoices reports ACCC retirement village probe stalls.

"Almost nine months since the competition watchdog said it would investigate serious matters involving retirement village operator Aveo, it has still not asked a single question of the company, according to chief executive Geoff Grady.

Further, political oversight for the issue at the federal level appears to have fallen through the cracks since the revelations.

Mid-last year, ACCC chairman Rod Sims told Fairfax Media that there were three laws relevant for the commission to investigate: misleading conduct, unfair contract terms and unconscionable conduct. But he said the ACCC would need to unpick what the state requirements were doing."

Read the full story here:- Watchdog probe into retirement village stalls

ACCC retirement village probe stalls

Please sign the petition for retirement village reforms.

Two Retirement Village Operators Offer Alternative Contracts

YourLifeChoices reports that two retirement village operators offer alternative contracts.

"During last year’s joint Fairfax/Four Corners reporting of alleged unconscionable conduct by Aveo, revelations surfaced about residents who said they had been ‘gouged’ by exit fees – otherwise known as deferred management fees – when they left the villages.

In response to the fallout, Stockland and Lendlease, which between them own 136 retirement villages, have introduced a variety of new contracts, some of them without exit fees.

According to a report in The Sydney Morning Herald, Lendlease has introduced “four financial models at 15 of its 71 retirement villages, with plans to extend them across the board after market feedback. Lendlease would still offer its existing contract, whereby a person buys a unit then pays a deferred management fee at the end. The three new options include a pre-paid plan, a refundable contribution and a pay-as-you-go model”

Stockland Chief Executive of Retirement Living Stephen Bull told YourLifeChoices in a statement: “One of the key differentiators of our retirement living business is that we make it affordable to move in, and affordable to live in a Stockland retirement village."

The company has three types of contracts:

• the Peace of Mind contract has a deferred management fee that maxes out at five years or 25 per cent of the initial price paid from the home. In addition, Stockland covers all renovation costs and residents will be repaid after a maximum of six months from departure even if their home hasn't yet been sold.


• the Capital Share contract offers the resident the opportunity to share in 50 per cent of the capital gain of the property. In this contract, the residents deferred management fee reaches its maximum at seven years or 35 per cent in total.


• the Aspire product, which will be offered at two villages currently under construction – one at Elara, in Marsden Park, Sydney and the other one is in our Calleya Community near Perth in WA. It has a higher entry fee, but no exit fees."

Read the full story here:- Two companies offer village contracts free of fees

Two Retirement Village Operators Offer Alternative Contracts

Please sign the petition for retirement village reforms.

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