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.


retvill.net

Wednesday, 24 June 2020

Great Retirement Village Deception


The great retirement village deception, the use of words like 'buy' and 'purchase' deceive the retiree
into believing an exchange of ownership will take place. In fact the retiree has merely made a 'loan' to the operator at 0% interest. This loan on far too many occasions is equivalent to or near to equivalent to the purchase value of a similar standard unit with the generally community.

The loan has three key features all detrimental to the retiree,
  1. Village residents can lose as much as 40% of the original 0% loan amount through a poorly named 'Deferred Management Fee', this fee is accumulated over the initial years of occupancy.
  2. Inflation over the period of occupancy can devastate the $ value of the refundable amount of the original loan. (The refundable amount being the value of the initial loan minus the value of the deferred management fee.)
  3. Outgoing residents can wait weeks, months to get back the refundable portion of their loan after their departure from the village.

Loan/Lease Retirement Village - Resident Funded – 74% of the marketplace

  • Development of the village funded by the retirees with 0% loans to developer/owner.

  • Retiree loans a $ sum, in the order of a 'buy' price, at 0% interest to the developer/owner in exchange for conditional occupancy, not ownership.

  • Village residents despite only occupancy not ownership, pay all the management costs, maintenance costs, municipal rates, renovation costs, selling costs.

  • Village residents despite only occupancy not ownership, can lose as much as 40% of the original 0% loan amount through a poorly named 'Deferred Management Fee', this fee is accumulated over the initial years of occupancy.

  • The shorter the occupancy period the more devastating the Deferred Management Fee becomes on the $ amount of the refundable portion of the 0% loan.

  • The longer the occupancy the more devastating inflation becomes on the $ value of the refundable portion of the 0% loan.

  • In the order of 50% of developers/owners deny retirees access to any unit capital gain.

  • Enforced by legislation retirees can wait weeks, months to get back the refundable portion of their loan after their departure from the village.


Saturday, 13 June 2020

Super Concessions Go To Wrong People

Elder Abuse Awareness Day

Victoria Fails Social Housing Test

Fix Retirement Income System

Better Ways To Spend $688 Million Dollars

Homebuilder Scheme Misses The Mark

Homebuilder Scheme Ignores Social Housing

Investor Cash Versus Social Housing

Affordable Housing Crisis Hitting Hard

Homebuilder Scheme Ignores Retirement Villages

Social Housing Investment Needed

Wednesday, 3 June 2020

More Money For Social Housing

The Grattan Institute reports - Money for social housing, not home buyers grants, is the key to construction stimulus.

"There’s a better way to support residential construction without providing such big windfalls to developers: fund the building of more social housing.Social housing – where rents are typically capped at no more than 30% of household income – provides a safety net to vulnerable Australians.
In particular, the Morrison government should repeat another GFC-era policy, the Social Housing Initiative, under which 19,500 social housing units were built and another 80,000 refurbished over two years, at a cost of A$5.2 billion."

www.retvill.net

Tuesday, 2 June 2020

Social Housing Demand

Victorian Retirement Village Data

Property Prices to Fall

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