Transfer of Intergenerational Wealth

Retirees don't deserve the financial disaster that comes from downsizing from the family home into a retirement village. @SffpVictoria @ademsomyurek @_davidlimbrick @georgievpurcell @rachelpaynemp @dettershankMP @BradBattinMP @DavidDavisMLC @NStaikos #springst @AivGoesGreen pic.twitter.com/zSxfvEk82u

— Les Scobie (@retvilldotnet) February 4, 2025

Capital Wealth Lost

Retirement village analysis shows the dominant financial model for retirement villages the loan lease model is causing a demonstrative transfer of capital from residents and their families to operator corporations. https://t.co/4zW6TvuCXF @MichaelWestBiz @consumervic #springst

— Les Scobie (@retvilldotnet) February 3, 2025

Vic Labor Tramples Retirment Village Residents

@VictorianLabor has trampled some 36,000 retirees in retirement villages by making them wait 12 months to get their money back on leaving a village. Insulting them by saying probate takes longer than six months. @NStaikos @JaclynSymes @TimMcCurdyMP @consumervic @abc730 #SpringSt pic.twitter.com/GtDQ1xOOPF

— Les Scobie (@retvilldotnet) February 2, 2025

Vote NO Retirement Villages

 VOTE NO to the new Retirement Villages Act.

The new act perpetuates the retiree rip-off by charging a 'purchase price without property ownership' to obtain entry. 

The village owner/operator is authorised by the act to transfer all the costs of property ownership to the retiree whilst retaining all the benefits for themselves.

The business model inherent within the act hides what is simply residential tenancy by any other name but a demonstrably higher price.

What is wrong with Retirement Villages

 What is wrong with Victorian loan/lease retirement villages? 

1. Property Ownership is never granted.
2. You paid for it but you don't get to own it. 
3. You only 'rent' it. 
4. This through deceptive names like 'entry payment' and 'deferred management fee' that obscure the true $ cost.
5. You pay for management of the property even though you don't own it.
6. You pay for upkeep of the property even though you don't own it.

Zero Functionality for Village Deferred Management Fee

The Jacinta Allan Government new definition of the 'Deferred Management Fee' as a fee for 'services' has ZERO functionality. 

This change is from the new proposed Victorian Retirement Villages Act.

ZERO functionality comes from the fact that village residents already pay 100% of the cost of 100% of the management services that Victorian retirement village operators claim and charge for as necessary to successfully operate the village.

Under Australian consumer law an operator cannot charge for ‘services’ where 1. there is no intent to supply or 2. no supply has in fact been made.

Competition & Consumer Act 2010
Chapter 3. 3-1 Unfair practices. Division 1. 36 - Wrongly Accepting Payment.

36-1 A person must not, in trade or commerce, accept payment or other consideration for goods or services if, at the time of the acceptance, the person intends not to supply the goods or services.

36-4 A person who, in trade or commerce, accepts payment or other consideration for goods or services must supply all the goods or services:

WHAT ARE THE NEW FEES?

HOW CAN THEY BE SUBSTANTIATED?

What is Wrong with Retirement Villages

What is wrong with retirement villages. 

Contemplating moving into a retirement village, these people have an insight and they don't have a conflict of interest.

Look Before You Leap Into Retirement Villages

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 to not leap at all.

 

Retirement Village Residents a Frog in Boiling Water

Victorian retirement village residents are as vulnerable as a frog in boiling water, they don't know what is really happening to them.

The reality is a slow transfer of their hard earned capital wealth, not to their families, but to greedy corporations. Then they have to rely on the Australian taxpayer to fund their aged care costs.

The Victorian Labor government has just written an operator centric legislative framework to support this process.

Retirement Village Demonstrably More Expensive Than Residential Tenancy

Victorian Retirement Village residents can pay multiple times the cost of a residential tenancy for what is the same primary product, residential accommodation. Retirement villages are all smoke and mirrors hiding the true cost. 

Property ownership through retention of the family home or a true Body Corporate retirement village the only defence.