Function of Government

The role of government is to create an environment for commerce to function whilst at the same time protecting retirees and particularly vulnerable retirees from both financial and emotional harm emanating from that function.

The Victorian Retirement Villages Act 1986 provides the environment for commerce to function but fails to fully protect retirees from financial and emotional harm as a result of it.

The Victorian legislative definition of a retirement village in demanding the payment of an 'in-going' amount without the transfer of property ownership is a major contributor to that financial and emotional harm suffered by retirees.

Monday, 9 April 2018

New Retirement Village Contract Options For Lendlease

The Sydney Morning Herald reports:- An article by Rachel Lane from Aged Care Gurus on new retirement village contract options for Lendlease.

"These new payment alternatives are more like the options you get when buying a mobile phone or a luxury car. Lendlease said it came up with the options by researching the market, including consumers who rejected the current offering. The feedback suggested that for some people a capital gain was important, others wanted certainty they'd get back what they'd paid, and a third group desired the ability to pay month by month.

So what are the options?

Lendlease will still offer its current contract, whereby you pay an ingoing price and when you leave you receive the sale price, less a deferred management fee of up to 35 per cent of the sale price, and any reinstatement fees and selling costs.

The first alternative is a prepaid price whereby you pay the management fee upfront (about 18 per cent of the purchase price), you still pay reinstatement fees and selling costs at the end but you receive all of the capital gain (or loss).

The next option is a refundable contribution whereby the amount you pay is refunded in full within 60 days of leaving. With this option a non-refundable establishment fee of 3 per cent is charged upfront.

The final option is to pay as you go, whereby you pay a monthly charge and a security deposit equal to 24 months' “rent”. The security deposit is refunded to you within 60 days of leaving the village. There is an establishment fee equal to three months' rent. Currently this option is only available on serviced apartments."

How does it affect the price?         
Read the full story here:- Doing the sums on Lendlease's new contracts"

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