"Living in a retirement village has the capacity to be a great lifestyle decision, sadly it also has the capacity to be your very worst financial decision." - RETVILLDOTNET.
An example for a village with the Deferred Management Fee calculated on the ingoing $$$.
"My father must have been one of the few people who lost money when he sold his home in a booming Melbourne property market. This huge loss on his home, in a popular suburb not far from the CBD, was despite it selling for more than he paid for it. The problem? He bought into a retirement village." - Diana Thorp. Sunday Herald Sun. 22/08/21
An example for a village with the Deferred Management Fee calculated on the outgoing $$$.

Friday 6 April 2018

Retirement Village Operator Breaks Ranks

Retirement Village Operator Breaks Ranks - The Sydney Morning Herald reports:- Retirement Village Operator Breaks Ranks Over Contracts 

"Lendlease is breaking ranks with the other big retirement village operators to introduce payment options with no exit fees.

Lendlease, Aveo and Stockland – the three biggest operators of retirement villages – have traditionally cleaved to a model whereby the resident pays less up front but the operator claws back a hefty “deferred management fee” when they leave.

Lendlease has now introduced a choice of 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."
Read the full story here:- Lendlease breaks ranks over RV contracts

Retirement Village Operator Breaks Ranks
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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.


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