The Transfer of Intergenerational Wealth

"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 large multi-nationals.

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

Tom Gait, Retirement Village Residents Association.

Tuesday, 1 May 2018

Retirement Village Crunch The Numbers Before Entering

WAtoday in an article by Rachel Lane of Aged Care Gurus advises retirees to crunch the numbers before entering a 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

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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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