"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 $$$.

Saturday 22 June 2019

A Few Major Things Went Wrong

ABC 7.30 program reports:- 

Read the full story here:- Retirement Village residents unhappy about complex contracts and fees

Retirement village residents unhappy about complex contracts and fees.

"The aged care royal commission has uncovered some shocking stories about the treatment of older Australians. But the housing that many older Australians depend on, retirement villages, falls outside its scope. About 200,000 Australians live in these villages and rely on the support they provide.

But some are paying dearly to do so, signing up to complex contracts and worrying that the money they are spending now may leave them unable to afford aged care when they need it.

When Les Scobie and his wife paid just over $200,000 for their retirement unit in the Victorian town of Wangaratta, they were hoping for a quiet life. They knew that if they decided to sell up and move on, the operators of the village would keep about a third of their money in exit fees.  "The part that we didn't understand when we came in, was how little protection there was for you if something went wrong," Mr Scobie said. "And unfortunately, at this village, a few major things went wrong."

The former bank manager discovered he and other residents had been wrongly charged a combined total of more than $300,000. So, on behalf of hundreds of residents at the village, Mr Scobie took on the local Anglican diocese, which ran the village at the time, and won back most of the money.

Mr Scobie said retirement village residents were often vulnerable, especially when their health deteriorated and they needed to leave the village and go into aged care. He said retirement village residents needed to make sure they were not taken advantage of. "The industry really needs to be tipped upside down," he said."

Read the full story here:- Retirement Village residents unhappy about complex contracts and fees


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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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