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

Monday 16 July 2018

Legislative Change Needed for Victorian Retirement Villages


The push continues to revise the definition of a retirement village in the Victorian Retirement Village Act 1986 to make all cost inclusive residential tenancy contracts the mandatory first offer.

Because
  • This will provide transparent and thereby lower cost rates for future retiree lessees.
  • Would allow retirees to rent, when they do not have the capital to loan interest free to the developers.
  • It will simplify and shorten contracts so that they are more acceptable
  • It will introduce free market competition.
  • It will free up family housing in the community.
  • Should increase the retirement village uptake rate presently quoted at 5.7% of over 65 year olds compared to 15% in the USA.
The NSW government has made a change to their act which allows residential tenancy within a defined retirement village.

The main area of contention is that retirees must pay an in-going contribution that in Victoria cannot be rent. The phrase 'cannot be rent' has been removed from the NSW Act.

legislation change need for retirement villages



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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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