There can be a dramatic impact over time on the $ value of the refundable amount (in-going cost minus the deferred management fee) repayable to the resident on departure.
The impact arises from -
- Inflation
- Rising Property Prices
- Rising Aged Care Costs
- Rising Interest Rates
- Costs associated with a retirement village not generally associated with a residential lease - maintenance, refurbishment, administration.
This impact has the capacity to create a 'poverty trap' for some residents should they choose to leave the village to re-enter the property market or need to meet aged care costs.
Industry data shows 41% of retirement village residents receive no share from the village operator of the appreciation in property value which may have offered some protection against the above situation.
The higher the percentage of lifetime savings used to enter the retirement village, the higher the likely hood of the resident being trapped into their current situation and unable to change direction without family assistance.
There is no legislative protection for retirees from this so named retirement village financial/poverty trap.
"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 $$$.
An example for a village with the Deferred Management Fee calculated on the ingoing $$$.
"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 $$$.
An example for a village with the Deferred Management Fee calculated on the outgoing $$$.
Subscribe to:
Post Comments (Atom)
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.
Popular Posts
-
R etirement villages swallow vulnerable people’s money. In an article published by The Senior online magazine, one person who suffered at t...
-
The following is an article published in the September newsletter of the consumer and advocate body Residents of Retirement Villages Victori...
-
Making The Home Accessible For many seniors, making a home accessible after they’ve suffered an accident or health issue is imperative ...
Labels
- 4 Corners
- ACCC
- Aged
- Aged Care
- Aged Care Royal Commission
- Aged Pension
- Ageing at Home
- Aging in Place
- alzheimers
- Ambassador
- auction
- Australia
- Aveo
- Average Resident Comparison Figure
- Big Battery
- Bush Fire
- CALC
- capital
- capital gains
- capital loss
- carers
- Climate Change
- Code of Conduct
- Commissioner
- Commonwealth Government
- Consumer Affairs Victoria
- Contracts
- Corona Virus
- Cost
- COVID-19
- Deeming
- Deferred Management Fee
- Detailed Calculator
- DSCV
- Ecocide
- Economy
- Election
- Emergency
- Emergency Plan
- emotional
- Evacuation
- Extinction
- Fair Trading Dpt.
- Family Home
- Fees
- financial
- fossil fuel subsidy
- Franking Credits
- frydenberg
- Global Warming
- Government Inquiry
- Goverrnment
- Growth and Innovation
- HAAG
- harm
- Home Care
- Homebuilder Scheme
- Housing
- Imputation Credits
- in-going amount
- Industry
- Irrigation
- Kiva
- Legislation
- Lendlease
- life savings
- Loan
- LSIC
- Lying
- Margin Lending
- Merry Christmas
- Misleading
- Morrison
- New South Wales
- Newstart
- Ombudsman
- Omnicide
- Pensioner
- Poverty
- Profit Driven
- property
- Property Developers
- Queensland
- Reform.
- Reforms
- Refurbishment
- Rent Assistance
- Residential Tenancy
- Residents of Retirement Villages Victoria
- retirees
- Retirement
- Retirement Living
- Retirement Living Ombudsman
- Retirement Village
- Retirement Village Law
- Royal Commission
- RRVV
- seniors
- Social Distancing
- Social Housing
- Solar Power
- State Government
- State Laws
- Stockland
- Super Concessions
- Superannuation
- Superannuation Concessions
- Taxi
- Taxpayer
- Travel Auction
- Travel Insurance
- VCAT
- Victoria
- Wind Power
No comments:
Post a Comment