tag:blogger.com,1999:blog-4094573419741705942024-03-13T12:02:20.447+11:00retvilldotnetThings to know about a retirement village including the deferred management fee, capital gain, refurbishment, maintenance costs, poverty trap.retvill.nethttp://www.blogger.com/profile/16888232261277718561noreply@blogger.comBlogger622125tag:blogger.com,1999:blog-409457341974170594.post-81765991962596211562023-09-11T06:06:00.001+10:002023-09-11T06:06:41.208+10:00Retirement Villages are a Get Poor Quick Scheme<p><span style="font-family: times;">R<span style="background-color: white; color: rgb(17 24 39/var(--tw-text-opacity));"><b>etirement villages swallow vulnerable people’s money.</b></span></span></p><p><span style="background-color: white; color: rgb(17 24 39/var(--tw-text-opacity));"><span style="font-family: times;">In an article published by <a href="https://www.thesenior.com.au/" target="_blank">The Senior</a> online magazine, one person who suffered at the hand of a village operator described retirement villages as a "Get Poor Quick Scheme".</span></span></p><div style="text-align: left;"><span style="font-family: times;"><span style="background-color: white; color: rgb(17 24 39/var(--tw-text-opacity));">Their summary of the ordeal was - </span><span style="background-color: white; color: #1f2937;">“The whole thing from go to whoa, was opaque in terms of the charges, the contracts, the complexity of the arrangements, the fees, the ongoing fees after my aunt passed away. It created a very complex picture on what should have been a pretty simple exercise”.</span></span></div><div style="text-align: left;"><span style="font-family: times;"><span style="background-color: white; color: #1f2937;"><br /></span></span></div><div style="text-align: left;"><span style="font-family: times;"><span style="background-color: white; color: #1f2937;">Another person described their own ordeal as - </span><span style="background-color: white; color: #1f2937;">“To be paying what amounts to a fairly high rent effectively per month on top of the capital you invested in purchasing the unit and then pay a fee of a third of your capital when you leave seems to me to be a recipe for financial disaster so I decided I should get out,”</span></span><span style="background-color: white; color: #1f2937;"><span style="font-family: times;"> </span></span></div><div style="text-align: left;"><span style="background-color: white; color: #1f2937;"><span style="font-family: times;"><br /></span></span></div><div style="text-align: left;"><span style="background-color: white; color: #1f2937;"><span style="font-family: times;">The article can be seen in full here - <a href="https://www.thesenior.com.au/story/5415806/the-retirement-villages-that-swallow-vulnerable-peoples-money/" target="_blank">https://www.thesenior.com.au/story/5415806/the-retirement-villages-that-swallow-vulnerable-peoples-money/</a> </span></span></div>retvill.nethttp://www.blogger.com/profile/16888232261277718561noreply@blogger.com0tag:blogger.com,1999:blog-409457341974170594.post-78272193823392865362023-09-09T06:40:00.006+10:002023-09-09T06:51:01.380+10:00Retirement Villages - Don't Mess with Old PeopleThe following is an article published in the September newsletter of the consumer and advocate body <a href="https://www.rrvv.org.au/" target="_blank">Residents of Retirement Villages Victoria</a>. <div><br /></div><div>The article comes with the heading - Don't mess with old people! </div><div><br /></div><div>It shows how things can go wrong in a retirement village over just 4 years and for such a large amount of money. There are some 467 retirement villages in Victoria with some 36,000 retirees residing in them. It would be naive to think that the problems outlined by this particular resident are not occurring in any of the other 466 Victorian retirement villages. </div><div><br /></div><div>The name of the village resident and the name of the village operator are confidential under the terms of the settlement agreement. </div><div><br /></div><div>The article details the actions of the operator the resident contended were invalid, together with the terms of the mutually agreed settlement. </div><div><br /></div><div>The article as published - </div><div><br /></div><div>"In May 2023, one of our members settled a long-running case with a village operator for $935,000. The terms are confidential except for the details revealed in this article. </div><div><br /></div><div>This article is the story of an RRVV member who challenged the financial practices of a village operator in the face of legal and personal challenges. It warns operators who think old people have no fight left in them to think again. </div><div><br /></div><div>Around four years ago, our member pointed out their operator was charging a service fee higher than the amount permitted by law and asked for a refund. </div><div><br /></div><div>The dispute could not be settled, and our member filed a claim with the Victorian Civil and Administrative Tribunal (VCAT). By this time, COVID was again spreading, and VCAT was only holding hearings via ZOOM. VCAT's case backlog was growing.</div><div><br /></div><div>At the first hearing, the VCAT presiding member ruled that the resident had not made out the case adequately but provided an opportunity to present a fuller case at another hearing in six months. </div><div><br /></div><div>Our member asked us for assistance at this point. During our early discussions, we learned our member was also concerned, amongst other things, the operator was charging the village a fixed proportion of various head office overheads. </div><div><br /></div><div>At the second hearing, the VCAT member accepted the amended points of claim and ordered the parties to attend a compulsory conference. This order introduced another six month delay. </div><div><br /></div><div>The parties did not settle at the compulsory conference, and the operator's barrister argued that part of the claim was invalid. The VCAT member set a date for a case hearing, and gave our member leave to submit an amended claim. </div><div><br /></div><div>By this time, our member was feeling the strain but managed to file the amended points of claim before the deadline. </div><div><br /></div><div>Just before the operator’s deadline for filing its points of defence, it approached our member with an offer to discuss a settlement. This approach reinvigorated our member. </div><div><br /></div><div>Here the resident included even further issues. </div><div>It was contended that – </div><div><br /></div><div>1. The operator had used the village’s major maintenance fund to pay for unit renovation costs which were the operator’s responsibility. The fund was some $400,000 in deficit. </div><div><br /></div><div>2. The operator used village staff to renovate those units for resale. The responsibility to pay those wages fell directly on the operator, not the residents. </div><div><br /></div><div>3. The operator included in resident fees the operator’s cost for legal services incurred in this matter, some $45,000. </div><div><br /></div><div>4. The operator levied across all residents’ costs where some residents had a direct contractual obligation to pay those costs. </div><div><br /></div><div>5. The operator failed to provide sufficient information in their financial reporting. This is contrary to s34.3b of the Act and prevents residents satisfactorily identifying valid or invalid charges levied on them. </div><div><br /></div><div>6. Contrary to s38.2, the operator levied a maintenance charge greater than the CPI calculated adjusted maintenance charge without the authority of the residents under s38.4. </div><div><br /></div><div>7. The operator used simple averages and percentages plus a mixture of village and aged care costs when calculating the ‘management and administrative’ services charges levied on the village residents. </div><div><br /></div><div>The parties settled the matter on the following terms. </div><div><br /></div><div>1. At its cost, bring the major maintenance fund back to zero from a negative $400,000. </div><div><br /></div><div>2. The operator committed to paying unit renovation costs, including staff wages, for those units where the resident did not have a contractual obligation to do so. </div><div><br /></div><div>3. Maintenance and replacement costs plus staff costs to be levied against residents with a direct contractual obligation to pay those costs when not choosing a private contractor. </div><div><br /></div><div>4. The operator is to refund the cost of their some $45,000.00 in legal fees, and to adjust the village financial report to reflect that. </div><div><br /></div><div>5. The operator committed to using the s38 and s38AA statutory methodology to set service fees. </div><div><br /></div><div>6. The operator committed to using the most accurate methodology to calculate charges for village management and administrative services. </div><div><br /></div><div>7. The operator committed to providing financial reports and budgets in line with the provisions of s34.3b. </div><div><br /></div><div>8. The operator committed to spending, some $500,000.00 on capital improvements to the village. </div><div>The residents have the controlling vote on which project. </div><div><br /></div><div>Whilst the resident surrendered their individual monetary claim, they achieved a broader benefit for all village residents in the short and long term."</div>retvill.nethttp://www.blogger.com/profile/16888232261277718561noreply@blogger.com0tag:blogger.com,1999:blog-409457341974170594.post-90219380537095637312023-06-24T17:15:00.002+10:002023-06-24T17:15:12.800+10:00Retirement Villages = Destruction of Retiree CapitalFrom Michael West Media -<div><br /></div><div> "New research from retirement village analyst Les Scobie shows the dominant financial model for retirement villages, the loan/lease model, is causing a significant transfer of capital from retirees to retirement village operators. In many cases, elderly Australians would be considerably better off if they just stayed at home". </div><div><br /></div><div> Read the full article- <a href="https://michaelwest.com.au/retirement-villages-the-destruction-of-retiree-capital/" target="_blank">Retirement Villages : The Destruction of Retiree Capital</a></div>retvill.nethttp://www.blogger.com/profile/16888232261277718561noreply@blogger.com0tag:blogger.com,1999:blog-409457341974170594.post-86711602946023547522023-06-24T16:59:00.000+10:002023-06-24T16:59:05.495+10:00Abuse Reported by Over 40% living in Retirement Villages<p> A report from the <a href="https://www.rvra.org.au/" target="_blank">NSW Retirement Village Residents Association</a> shows <span style="background-color: white; font-family: inherit;">over 40% of people in retirement villages have experienced abuse.</span></p><p>"The Retirement Village Residents Association (RVRA) developed and distributed a survey on psychological abuse to all its members and some 120 retirement villages throughout NSW. The RVRA is not aware of any previous studies of the impact of psychological abuse solely within retirement villages that excluded external triggers such as financial abuse and neglect. Other studies psychological abuse with a broader range of elder abuse topics, and cover the broader senior cohort of aged care, community housing and general over55 living situations. </p><p>Over 40% (n=512) of the respondents reported experiencing at least one type of abuse. The proportion of females reporting abuse was higher (44%) than for males (34%). The percentage of the younger age groups in the sample reporting abuse was much higher (48%) when compared with the older groups (28%)."</p><p>See the full report here - <a href="https://www.rvra.org.au/news/news-articles/2023-06-15" style="font-family: sans-serif; white-space: pre;" target="_blank">https://www.rvra.org.au/news/news-articles/2023-06-15</a></p>retvill.nethttp://www.blogger.com/profile/16888232261277718561noreply@blogger.com0tag:blogger.com,1999:blog-409457341974170594.post-50147912209115296422023-06-02T11:40:00.000+10:002023-06-02T11:40:00.694+10:0055 Plus Retirement Community Problems Universal<p>Whilst American this video shows that the general issues with 55+ retirement villages are universal. It does not cover the more serious issues more relevant to a particular village or operator.</p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="312" src="https://www.youtube.com/embed/kUibKY4GkQg" width="375" youtube-src-id="kUibKY4GkQg"></iframe></div><br /><p><br /></p>retvill.nethttp://www.blogger.com/profile/16888232261277718561noreply@blogger.com0tag:blogger.com,1999:blog-409457341974170594.post-47668018873176408842023-04-26T06:20:00.005+10:002023-05-06T10:07:17.393+10:00<p> <span style="font-family: arial;">Why retirement village residents seek an industry Ombudsman. The VCAT
system is failing them.</span></p>
<p style="line-height: 100%; margin-bottom: 0cm;"><span style="font-family: arial;">This is the detail
of a real situation over 4 years of village operation. The resident contends that these matters are all contrary to the provisions of Retirement Village,
Contract and Consumer Law.</span></p>
<ol>
<li><p style="line-height: 100%; margin-bottom: 0cm;"><span style="font-family: arial;">In 2020 the
operator declared residents voted for a special increase in fees
without counting the votes to substantiate the necessary resident
support as required by statute. <span style="color: red;">Total
c</span><span style="color: red;">ost </span><span style="color: red;">to
residents </span><span style="color: red;">in that year </span><span style="color: red;">some</span><span style="color: red;">
</span><span style="color: red;">$2</span><span style="color: red;">2</span><span style="color: red;">,</span><span style="color: red;">000.00</span><span style="color: red;">.</span></span></p>
</li><li><p style="line-height: 100%; margin-bottom: 0cm;"><span style="font-family: arial;"><span><span>Commencing
in </span></span><span><span>2020/21
</span></span><span><span>the
</span></span><span><span>operator</span></span><span><span>
incorrectly calculat</span></span><span><span>ed
resident </span></span><span><span>fees</span></span><span><span>. </span></span><span style="color: red;"><span><span>C</span></span></span><span style="color: red;"><span><span>ost
</span></span></span><span style="color: red;"><span><span>to
</span></span></span><span style="color: red;"><span><span>residents
</span></span></span><span style="color: red;"><span><span>some
</span></span></span><span style="color: red;"><span><span>$</span></span></span><span style="color: red;"><span><span>80</span></span></span><span style="color: red;"><span><span>,000.00
</span></span></span><span style="color: red;"><span><span>to
date</span></span></span><span style="color: red;"><span><span>
then compounding by cpi </span></span></span><span style="color: red;"><span><span>for
</span></span></span><span style="color: red;"><span><span>every
year </span></span></span><span style="color: red;"><span><span>into
the future.</span></span></span><span><span>
</span></span>
</span></p>
</li><li><p style="line-height: 100%; margin-bottom: 0cm;"><span style="font-family: arial;"><span><span>From
</span></span><span><span>20</span></span><span><span>19/20</span></span><span><span>
</span></span><span><span>the
</span></span><span><span>operator</span></span><span><span>
</span></span><span><span>charged
for ‘services’ </span></span><span><span>claimed
to have been </span></span><span><span>provided</span></span><span><span>
</span></span><span><span>but
stating</span></span><span><span>
only </span></span><span><span>the
</span></span><span><span>total
amount. No details, </span></span><span><span>no</span></span><span><span>
itemisation. </span></span><span><span>Residents
denied statutory right to examine validity of charges. </span></span><span style="color: red;"><span><span>In
the order of $200,00.00 </span></span></span><span style="color: red;"><span><span>per
</span></span></span><span style="color: red;"><span><span>annum.
</span></span></span>
</span></p>
</li><li><p style="line-height: 100%; margin-bottom: 0cm;"><span style="font-family: arial;"><span><span>I</span></span><span><span>n
</span></span><span><span>2021/22
</span></span><span><span>residents
</span></span><span><span>were
charged</span></span><span><span>
for the cost of the </span></span><span><span>operator’s</span></span><span><span>
own legal expenses. </span></span><span style="color: red;"><span><span>Total
cost </span></span></span><span style="color: red;"><span><span>to</span></span></span><span style="color: red;"><span><span>
residents </span></span></span><span style="color: red;"><span><span>in
that year</span></span></span><span style="color: red;"><span><span>
some $46,000.00. </span></span></span><span style="color: red;"><span><span>
</span></span></span>
</span></p>
</li><li><p style="line-height: 100%; margin-bottom: 0cm;"><span style="font-family: arial;"><span><span>From
2019/20 </span></span><span><span>the
</span></span><span><span>operator</span></span><span><span>
</span></span><span><span>fail</span></span><span><span>ed</span></span><span><span>
to </span></span><span><span>verify
that</span></span><span><span>
the </span></span><span><span>fee
levied on residents met their statutory obligations</span></span><span><span>.</span></span><span><span> </span></span><span style="color: red;"><span><span>Total
cost </span></span></span><span style="color: red;"><span><span>to
</span></span></span><span style="color: red;"><span><span>residents
</span></span></span><span style="color: red;"><span><span>accumulated
to date, some</span></span></span><span style="color: red;"><span><span>
</span></span></span><span style="color: red;"><span><span>$2</span></span></span><span style="color: red;"><span><span>36,</span></span></span><span style="color: red;"><span><span>000,00</span></span></span><span style="color: black;"><span><span>.</span></span></span></span></p>
</li><li><p style="line-height: 100%; margin-bottom: 0cm;"><span style="font-family: arial;"><span><span>From
</span></span><span><span>20</span></span><span><span>19/20</span></span><span><span>
</span></span><span><span>the
operator </span></span><span><span>overdrew
the resident’s</span></span> Major Maintenance Fund to pay costs
that were the contractual responsibility of the operator to pay. <span style="color: red;">Overdrawn
balance of </span><span style="color: red;">the </span><span style="color: red;">fund
to date, some $390,000.00.</span></span></p>
</li><li><p style="line-height: 100%; margin-bottom: 0cm;"><span style="font-family: arial;"><span><span>From
</span></span><span><span>20</span></span><span><span>19/20</span></span><span><span>
</span></span><span><span>the
operator</span></span><span><span>
</span></span>included in resident monthly fees the wages cost of
village maintenance staff for the refurbishing of
village units owned by the operator and being prepared for resale. Most units were the contractual
responsibility of the operator to pay those costs. <span style="color: red;">$ uncosted to this
time</span></span></p>
</li><li><p style="line-height: 100%; margin-bottom: 0cm;"><span style="font-family: arial;"><span><span>From
20</span></span><span><span>19/20</span></span><span><span>
the operator included in the monthly fees </span></span><span><span>of those </span></span><span><span>residents
with</span></span><span><span>out
a</span></span><span><span>
contractual obligation to pay, </span></span>staff wages plus the
replacement cost of fittings, fixtures and furnishings for the unit
maintenance where the occupying resident had a contractual
obligation to pay the direct costs incurred. <span style="color: red;">$ uncosted to this time</span></span></p>
</li><li><p style="line-height: 100%; margin-bottom: 0cm;">
<span style="font-family: arial;"><span><span>From
20</span></span><span><span>19/20</span></span><span><span>
</span></span><span><span>new
</span></span><span><span>village
residents</span></span><span><span>
on </span></span><span><span>th</span></span><span><span>e</span></span><span><span>
</span></span><span><span>operator’s
new</span></span><span><span>
contracts </span></span><span><span>were
</span></span><span><span>charged</span></span><span><span>
a monthly ‘maintenance charge’ greater than </span></span><span><span>the
statutory allowable maintenance charge</span></span><span><span>.</span></span><span><span> </span></span><span style="color: red;"><span><span>Total
cost across all new residents i</span></span></span><span style="color: red;"><span><span>n
the order of</span></span></span><span style="color: red;"><span><span>
$</span></span></span><span style="color: red;"><span><span>153,000.00
</span></span></span><span style="color: red;"><span><span>to
date.</span></span></span></span></p>
</li><li><p style="line-height: 100%; margin-bottom: 0cm;">
<span style="color: black; font-family: arial;"><span><span>T</span></span><span><span>he
total amount in dispute o</span></span><span><span>ver</span></span><span><span>
just 4 years of village operation </span></span><span><span>is</span></span><span><span>
$1,727,000.00 </span></span><span><span>plus</span></span><span><span>.</span></span></span></p>
</li></ol><p style="text-align: center;"></p><div class="separator" style="clear: both; text-align: left;"><span style="font-family: arial;"><br /></span></div><span style="font-family: arial;"><br /></span><span face=""Segoe UI Historic", "Segoe UI", Helvetica, Arial, sans-serif" style="background-color: white; color: #050505; font-size: 15px; white-space: pre-wrap;"><br /></span><p></p>retvill.nethttp://www.blogger.com/profile/16888232261277718561noreply@blogger.com0tag:blogger.com,1999:blog-409457341974170594.post-79669935842785770652023-02-04T18:22:00.000+11:002023-02-04T18:22:22.673+11:00National Ombudsman Recommended for Retirement Villages<p>The <a href="https://www.ahuri.edu.au/" target="_blank">Australian Urban Research Institute</a> has recommended a National Ombudsman for Retirement Villages. </p><p>Retirement Villages in Australia operate under varying laws of the State Governments, this as opposed to aged care facilities that operate under Commonwealth laws. </p><p>AURI published a report on the industry in December 2022, the primary recommendations of the report were - </p><p></p><ul style="text-align: left;"><li>A national ombudsman</li><li>More affordable housing solutions</li><li>Greater transparency</li><li>Better standards of service</li><li>Accessible building standards</li><li>Ethical and impartial dispute resolution processes</li><li>Regulation of the financial management processes</li><li>Repositioning of retirement village contracts as a financial product</li></ul><div>The AURI report titled Business models, consumer experiences and regulation of retirement villages can be found via this link - <a href="https://www.ahuri.edu.au/research/final-reports/392">https://www.ahuri.edu.au/research/final-reports/392</a> </div><div><br /></div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhzS_4-belC23-ABQlh-AwGF5i9Q094TqqQC38uLOpq-RqraYn4wwDN-jvq4ymS9yU1mHPiTGfzGi9gRy8ojVAamQZIO59_YuUC77NZBs1bfpfzfcGQGgzpZrx-yIViCY50ZY46LG7BHqrFp22VHLuEeEwJl9GbLFfTVIUUjmJXTFf4ODok5pphEUCkww/s610/AHURI%20Primary%20Recommendations.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="610" data-original-width="444" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhzS_4-belC23-ABQlh-AwGF5i9Q094TqqQC38uLOpq-RqraYn4wwDN-jvq4ymS9yU1mHPiTGfzGi9gRy8ojVAamQZIO59_YuUC77NZBs1bfpfzfcGQGgzpZrx-yIViCY50ZY46LG7BHqrFp22VHLuEeEwJl9GbLFfTVIUUjmJXTFf4ODok5pphEUCkww/w291-h400/AHURI%20Primary%20Recommendations.jpg" width="291" /></a></div><br /><div style="text-align: center;"><br /></div><p></p>retvill.nethttp://www.blogger.com/profile/16888232261277718561noreply@blogger.com0tag:blogger.com,1999:blog-409457341974170594.post-64959926108905970622022-04-25T10:09:00.000+10:002022-04-25T10:09:04.931+10:00Danger in Retirement Village Resident Fees<p> </p><p style="line-height: 100%; margin-bottom: 0cm;">Evidence for many residents in retirement villages shows they are being taken advantage of
for items in their units where they are arbitrarily being made
responsible to pay for repair and/or replacement.</p><p style="line-height: 100%; margin-bottom: 0cm;">Retirement Villages
come under Victorian law whereas aged care facilities come under
commonwealth law. Regulation 11(1h) under Victorian law requires a
village operator to list the relevant fixtures, fittings and
furnishings in the contract before the contract is signed. </p><p style="line-height: 100%; margin-bottom: 0cm;">A resident in a Victorian retirement village paying for repair or
replacement of fixtures, fittings or furnishings not listed in your
contract? Seek advice now from a local free legal advice service,
your solicitor or Consumer Affairs. </p><p style="line-height: 100%; margin-bottom: 0cm;">Currently the Retirement Villages
Act 1986 is under review by the State Government, if this matter is
applicable to you or there is another matter of concern to you make
those concerns known to your local State Government representative.</p><p style="line-height: 100%; margin-bottom: 0cm;">Find you local state government representatives - <a href="https://www.parliament.vic.gov.au/about/people-in-parliament/members-search/search-members " target="_blank">https://www.parliament.vic.gov.au/about/people-in-parliament/members-search/search-members </a></p><p style="line-height: 100%; margin-bottom: 0cm;"><br /></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgo_We474e5YocsGW4wPR0l9ve05eXDv1sWS-dMxHmDQPC0K0hoQSuqMeMgwkVZ4qY3jGmGN0tgKppn9-dxwNnoh87NvYIFJLJt9koHCzHiyKcDAioL7FBmMfghAhxtgR6K75-SCpoFQwlcwlK-d6nff8rPKFNgAefMZZZG7M0Jq_36INXCSlsUAD8H-w/s985/Contracts.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="431" data-original-width="985" height="175" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgo_We474e5YocsGW4wPR0l9ve05eXDv1sWS-dMxHmDQPC0K0hoQSuqMeMgwkVZ4qY3jGmGN0tgKppn9-dxwNnoh87NvYIFJLJt9koHCzHiyKcDAioL7FBmMfghAhxtgR6K75-SCpoFQwlcwlK-d6nff8rPKFNgAefMZZZG7M0Jq_36INXCSlsUAD8H-w/w400-h175/Contracts.jpg" width="400" /></a></div><br /><p style="line-height: 100%; margin-bottom: 0cm; text-align: center;"><br /></p><p style="line-height: 100%; margin-bottom: 0cm; text-align: center;"><br /></p>retvill.nethttp://www.blogger.com/profile/16888232261277718561noreply@blogger.com0tag:blogger.com,1999:blog-409457341974170594.post-23873912877590493382022-04-08T08:31:00.006+10:002022-04-08T08:36:06.142+10:00RRVV Refreshes Member Website<div style="background-color: white; box-sizing: border-box; font-family: "Open Sans"; margin-bottom: 1rem; margin-top: 0px; text-align: left;">The peak representative body for retirement village residents in Victoria, <a href="https://www.rrvv.org.au/" target="_blank">Residents of Retirement Villages Victoria</a> has refreshed their web site with a bold new look.</div><div style="background-color: white; box-sizing: border-box; font-family: "Open Sans"; margin-bottom: 1rem; margin-top: 0px; text-align: left;"><span style="font-weight: normal;">Residents of Retirement Villages Victoria Inc. is an independent volunteer organisation serving and representing residents of retirement villages and similar housing communities within Victoria. </span>RRVV as they are commonly referred to <span style="font-family: "Open Sans";">represent around 6,000 residents and growing.</span></div><div style="background-color: white; box-sizing: border-box; font-family: "Open Sans"; margin-bottom: 1rem; margin-top: 0px; text-align: left;">The organisation is member-based and is managed by a committee of unpaid volunteer village residents who are elected annually at their Annual General Meeting. They do not receive any government funding and depend solely on fee subscriptions and member donations to operate.</div><div style="background-color: white; box-sizing: border-box; font-family: "Open Sans"; margin-bottom: 1rem; margin-top: 0px; text-align: left;">New members are always welcome as the more members they have, the greater is their effectiveness, they encourage all retirement village residents to join as this will support all residents of retirement villages across Victoria.<span> </span></div><div style="background-color: white; box-sizing: border-box; font-family: "Open Sans"; margin-bottom: 1rem; margin-top: 0px; text-align: left;">Take this link to their 'new look' web site - <a href="https://www.rrvv.org.au/" target="_blank">Residents of Retirement Villages Victoria</a></div>retvill.nethttp://www.blogger.com/profile/16888232261277718561noreply@blogger.com0tag:blogger.com,1999:blog-409457341974170594.post-53374180673302699792022-03-20T05:34:00.000+11:002022-03-20T05:34:02.591+11:00Retirement Villages = 'The transfer on intergenerational wealth'<p> <span style="background-color: white; color: #333333; font-family: sans-serif; font-size: 14px; white-space: pre-wrap;">Retirement Villages = 'The transfer on intergenerational wealth, not to families, but into the hands of corporations. Shame about elderly people not having enough money for Aged Care.' - Tom Gait</span></p><p style="text-align: center;"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEgh5FdlT8cGOmY0BTZEEuYvTx45Ld5O-n5yG74RCEmH0IIFCGhzjaKLZ4o5RiAC9sTbPHV_z1huf44L-qQyGE-6djQ3PjN1Dl7G9sUp6ZdE6vg5K884EMfeHdZ34Q0HDxyelJDsSFibkJqYtOz-y_SrWMftsWnHulyvdDVl8tXen1iAycKXjD33G3Lc4w=s1100" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="628" data-original-width="1100" height="366" src="https://blogger.googleusercontent.com/img/a/AVvXsEgh5FdlT8cGOmY0BTZEEuYvTx45Ld5O-n5yG74RCEmH0IIFCGhzjaKLZ4o5RiAC9sTbPHV_z1huf44L-qQyGE-6djQ3PjN1Dl7G9sUp6ZdE6vg5K884EMfeHdZ34Q0HDxyelJDsSFibkJqYtOz-y_SrWMftsWnHulyvdDVl8tXen1iAycKXjD33G3Lc4w=w640-h366" width="640" /></a></div><br /><span style="background-color: white; color: #333333; font-family: sans-serif; font-size: 14px; white-space: pre-wrap;"><br /></span><p></p>retvill.nethttp://www.blogger.com/profile/16888232261277718561noreply@blogger.com0tag:blogger.com,1999:blog-409457341974170594.post-1307397126367712162022-03-16T07:15:00.003+11:002022-03-16T07:15:59.571+11:00Capital Gains - Retirement Village Units Perform Poorly<p>More evidence retirees get better financial results by staying in the family home and seeking a home care package than moving into a retirement village unit.</p><p>An article at The Weekly Source shows that retirement villages have taken the last 5 years to reach a 22% increase in value whereas the family home has done that in just the last year.</p><p>Note - Industry data shows only 37% of new retirement village occupancy contracts offer an incoming resident a share of any increase in the value of the unit.</p><p>The full article can be read here - https://www.theweeklysource.com.au/in-five-years-village-home-prices-increased-by-22-vs-22-in-one-year-for-residential-prices-is-this-a-shame-on-village-marketers/ </p>retvill.nethttp://www.blogger.com/profile/16888232261277718561noreply@blogger.com0tag:blogger.com,1999:blog-409457341974170594.post-49370231431686319302022-03-09T15:13:00.001+11:002023-09-10T10:12:24.799+10:00Retirement Village 6 Month Payout Rule Madness<p><span face=""Source Sans Pro", Helvetica, sans-serif" style="background-color: white; color: #141412; font-family: inherit;">Victorian loan/lease retirement village residents are trapped in a legislation nightmare. They may never get their money back on leaving a loan/lease retirement village if the unit in which they resided is not re occupied. Hard to believe but this is current Victorian state government legislation, legislation overseen by the Minister for Consumer. There are real life examples of retirees, their estates or their families that are still waiting over 4 years now for their money as a result of village unit sales slowing or in fact stopped. Incredibly they may never get their money back unless Victorian retirement village laws are changed.</span></p><p style="background-color: white; box-sizing: border-box; color: #141412; margin: 0px 0px 24px; overflow-wrap: break-word;"><span style="font-family: inherit;">The original law was changed so that village operators could place certain clauses in occupancy contracts. Clauses that allowed residents the <span style="box-sizing: border-box; font-weight: 700;">option</span>, note the option, to participate in the selection of a selling agent and in some cases the setting of a new lease price for the unit they once occupied but did not own. The impact of this on the outgoing resident is the removal of the 6 month maximum period payout rule, incredibly this happens whether an outgoing resident chooses to actively participate in the re leasing of their unit or not. What happens if the unit never gets a new lessee, there is no statutory or contractual obligation on the operator to ever repay them their refundable money. This could range of course from a few hundred thousand dollars to over a million dollars, all because of a piece of poorly drafted legislation.</span></p><p style="background-color: white; box-sizing: border-box; color: #141412; margin: 0px 0px 24px; overflow-wrap: break-word;"><span style="font-family: inherit;">The mere action of the village operator putting these Regulation 6 Schedule 1 or Schedule 2 clause in the contract negates the 6 month payout rule. Why would a loan/lease retirement village resident <span style="box-sizing: border-box; font-weight: 700;">knowingly</span> give up a maximum repayment period of 6 months in exchange for absolutely no limit at all. Such is the complexity of retirement village contracts that this is happening every day, contracts are continually signed without a clear understanding of what is in the document.</span></p><p style="background-color: white; box-sizing: border-box; color: #141412; margin: 0px 0px 24px; overflow-wrap: break-word;"><span style="font-family: inherit;">The Minister responsible to oversee Retirement Village law has the power to fix this. The power to return the six month rule to at least those retirees who <span style="box-sizing: border-box; font-weight: 700;">do not </span>or <span style="box-sizing: border-box; font-weight: 700;">did not </span>want to participate in 1. the process of selecting the selling agent and 2. in some circumstances the setting of the new village ingoing price for that unit.</span></p>retvill.nethttp://www.blogger.com/profile/16888232261277718561noreply@blogger.com0tag:blogger.com,1999:blog-409457341974170594.post-42156274115111642532022-02-11T05:51:00.002+11:002022-02-11T05:51:32.387+11:00Retirement Villages - State Governments Know The Core Problems<p><span style="background-color: white; color: #141412; font-family: "Source Sans Pro", Helvetica, sans-serif; font-size: 16px;">When it came to retirement villages the Victorian governments have known of the primary problems as far back as 2004. Successive governments since 2004 have failed to act to correct the resident owner/operator imbalance.</span></p><p style="background-color: white; box-sizing: border-box; color: #141412; font-family: "Source Sans Pro", Helvetica, sans-serif; font-size: 16px; margin: 0px 0px 24px; overflow-wrap: break-word;">The following are excerpts from the 2004 state government report into retirement villages. They identified the core issues but those issues are still as relevant today as they were back then.</p><p style="background-color: white; box-sizing: border-box; color: #141412; font-family: "Source Sans Pro", Helvetica, sans-serif; font-size: 16px; margin: 0px 0px 24px; overflow-wrap: break-word;">Nothing has really changed.</p><p style="background-color: white; box-sizing: border-box; color: #141412; font-family: "Source Sans Pro", Helvetica, sans-serif; font-size: 16px; margin: 0px 0px 24px; overflow-wrap: break-word;"><em style="box-sizing: border-box;">“Possible negative consequences for residents and prospective residents are also increased because of the effects of age-related characteristics on their ability to make informed and knowledgeable decisions about retirement village services.”</em></p><p style="background-color: white; box-sizing: border-box; color: #141412; font-family: "Source Sans Pro", Helvetica, sans-serif; font-size: 16px; margin: 0px 0px 24px; overflow-wrap: break-word;"><em style="box-sizing: border-box;">“Secondary markets that respond to the complex information requirements of the retirement village market (solicitors, financial planners, accountants and the like) have not developed to a level which adequately respond to market need. Consequently, the potential for consumer detriment is enhanced.”</em></p><p style="background-color: white; box-sizing: border-box; color: #141412; font-family: "Source Sans Pro", Helvetica, sans-serif; font-size: 16px; margin: 0px 0px 24px; overflow-wrap: break-word;"><em style="box-sizing: border-box;">” A considerable number of submission to the review raised concerns about the potential for financial loss when residents exit a village. Contracts that respond to the range of legal structures, services, facilities and fee are complex and residents find them difficult to understand. The problem is compounded by the large proportion of residents who are making a one-off decision, of significant financial nature, to enter a retirement village. Many of the legal and fee arrangements they must consider are unfamiliar to them and information and advice to help them make an informed decision appears to be limited.”</em></p><p style="background-color: white; box-sizing: border-box; color: #141412; font-family: "Source Sans Pro", Helvetica, sans-serif; font-size: 16px; margin: 0px 0px 24px; overflow-wrap: break-word;"><em style="box-sizing: border-box;">“Analysis of the retirement village market has revealed evidence for potential substantial consumer detriment arising from information asymmetry – the position where village owner/operators have superior knowledge of the services provided than do prospective residents.”</em></p><p style="background-color: white; box-sizing: border-box; color: #141412; font-family: "Source Sans Pro", Helvetica, sans-serif; font-size: 16px; margin: 0px 0px 24px; overflow-wrap: break-word;">All this published in a Victorian state government report on retirement villages way back in 2004.</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEgHebDzVO5h7BkFA9dSFBqo8WIbb-oIZ0v8JmQUpWo_FtTyfX88V_As0zyS-_Bp-PiseXsmoBOLjHDyVfpdJLeyjlbhe9-lP52ALapArBmeOvviDCl499UUOlH9EMf-kcrqasyD-iA6uj7crnBSNqg_foYoIb0heUDdkabP6Ypgnmx0X2dGR2JCc5lmFw=s1100" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="628" data-original-width="1100" height="366" src="https://blogger.googleusercontent.com/img/a/AVvXsEgHebDzVO5h7BkFA9dSFBqo8WIbb-oIZ0v8JmQUpWo_FtTyfX88V_As0zyS-_Bp-PiseXsmoBOLjHDyVfpdJLeyjlbhe9-lP52ALapArBmeOvviDCl499UUOlH9EMf-kcrqasyD-iA6uj7crnBSNqg_foYoIb0heUDdkabP6Ypgnmx0X2dGR2JCc5lmFw=w640-h366" width="640" /></a></div><br /><p style="background-color: white; box-sizing: border-box; color: #141412; font-family: "Source Sans Pro", Helvetica, sans-serif; font-size: 16px; margin: 0px 0px 24px; overflow-wrap: break-word; text-align: center;"><br /></p>retvill.nethttp://www.blogger.com/profile/16888232261277718561noreply@blogger.com0tag:blogger.com,1999:blog-409457341974170594.post-28444942821271644062022-02-09T06:25:00.006+11:002022-02-09T06:33:12.439+11:00Finance Contracts - Retirement Villages The Most Complicated<p><span style="font-size: medium;"> In a stinging critique <a href="https://www.michaelwest.com.au/retirement-villages-the-most-complicated-finance-contracts-in-australia/" target="_blank">Michael West Media</a> exposes retirement village contracts as -</span></p><p></p><blockquote><blockquote><blockquote><span style="font-family: inherit; font-size: medium;">"the most complicated finance contracts in Australia"</span></blockquote></blockquote></blockquote><p><span style="font-family: inherit; font-size: medium;">The article exposes these contracts as <span>"<span style="background-color: white; letter-spacing: -0.4px;">So devilishly complicated are retirement village contracts that an actuary and lecturer in applied finance, someone at the very pinnacle of mathematics and structured finance, reckons they are harder to understand than even synthetic collateralised debt obligations (CDOs).</span>"</span> </span></p><p></p><p></p><p style="text-align: left;"><i><span style="font-family: inherit; font-size: x-small;"><span style="background-color: white;">The video below shows these retirement village</span><span style="background-color: white; letter-spacing: -0.4px;"> contracts, which can stretch up to 500 pages, bewildered all but one of 20 university-educated, retiree-aged subjects in a 2020 study into the financial literacy of consumers looking to enter into retirement village contracts.</span></span></i></p><p></p><p></p><p></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="363" src="https://www.youtube.com/embed/nvRECpv68tU" width="436" youtube-src-id="nvRECpv68tU"></iframe></div><div style="text-align: center;"><span style="font-size: x-small;"><i style="background-color: #fcff01;">Retirement Village contracts - "the most complicated finance contracts in Australia"</i></span></div><p></p><p><span style="font-size: medium;">The full article can be read here -<a href="https://www.michaelwest.com.au/retirement-villages-the-most-complicated-finance-contracts-in-australia/" target="_blank"> https://www.michaelwest.com.au/retirement-villages-the-most-complicated-finance-contracts-in-australia/ </a></span></p><p></p>retvill.nethttp://www.blogger.com/profile/16888232261277718561noreply@blogger.com0tag:blogger.com,1999:blog-409457341974170594.post-47929672291107822722022-02-05T07:06:00.002+11:002022-02-05T07:06:35.968+11:00Michael West Retiree Capital Destruction<p>Well respected independent media <a href="https://www.michaelwest.com.au/retirement-villages-the-destruction-of-retiree-capital/" target="_blank">Michael West Media</a> have published a strong article as to how occupancy in a loan/lease retirement village destroys retiree capital over the period of their occupancy, as opposed to staying in the family home.</p><p>Take the link to read the article - <a href="https://www.michaelwest.com.au/retirement-villages-the-destruction-of-retiree-capital/" target="_blank">https://www.michaelwest.com.au/retirement-villages-the-destruction-of-retiree-capital/</a></p>retvill.nethttp://www.blogger.com/profile/16888232261277718561noreply@blogger.com0tag:blogger.com,1999:blog-409457341974170594.post-14209055382532987142022-01-15T06:06:00.049+11:002022-01-19T15:01:49.403+11:00Retirement Villages & Destruction of Retiree Capital<p><span style="font-family: arial;"> </span><b style="font-family: inherit;">Retirement Villages and the
Destruction of Retiree Capital</b></p><p align="left"><span style="font-family: inherit;"><span><span><span style="color: black;">A
primary feature of Loan/Lease Retirement Villages (74% of
the marketplace) is that despite the payment of an ingoing amount, an
amount often commensurate with or near to an outright purchase price,
the retiree never obtains ownership. </span><span style="color: black;">Note below the dramatic negative financial impact this aspect has on retiree capital as opposed to
outright property ownership. R</span></span></span><span style="color: black;"><span style="background: rgb(255, 255, 255);">etirement villages are the least understood of residential property by </span></span></span>retirees<span style="font-family: inherit;"><span style="color: black;"><span style="background: rgb(255, 255, 255);"> and their professional advisors.</span></span><span style="color: black;"> </span><span>Governments have the obligation to continually improve protections for retirees and their hard earned life savings, including those who choose a retirement
village as their preferred retirement living option. The
solution is clearly in an outright property ownership model</span><span>.</span></span></p>
<p align="left"><span style="font-family: inherit;"><span style="color: black;"><b>Model 1. </b><b>Loan/Lease
</b></span><span style="color: black;"><b>retirement </b></span><span style="color: black;"><b>village
with Deferred Management Fee calculated on the <u>ingoing</u> value of the
unit. </b></span></span><span style="font-family: inherit;">No share of any capital gain is provided to the retiree. (49% of loan/lease marketplace) </span></p><p align="left"><span style="font-family: inherit;"><span style="color: black;"></span></span></p><ol><li><span style="color: black;"><span style="color: black; font-family: inherit;">Industry average occupancy period 7
years </span></span></li><li><span style="color: black;"><span style="color: black; font-family: inherit;">Retirement Village Living over 7 Year
Lease Period </span></span></li><li><span style="color: black;"><span style="color: black; font-family: inherit;">Retiree Capital = $800,000.00 </span></span></li><li><span style="color: black;"><span style="color: black; font-family: inherit;">Ingoing Payment/Loan to Operator =
$800,000.00 </span></span></li><li><span style="color: black;"><span style="color: black; font-family: inherit;">Deferred Management Fee of 36% on the
unit <u>ingoing</u> amount = $288.000.00 (6%pa over first 6 years) </span></span></li><li><span style="color: black;"><span style="color: black; font-family: inherit;">5%
Sinking Fund Contribution on the unit <u>ingoing</u> amount = $40,000.00 </span></span></li><li><span style="color: black;"><span style="color: black; font-family: inherit;">Retiree Capital Cost = -$328,000.00 </span></span></li><li><span style="color: black;"><span style="color: black; font-family: inherit;">Resident Refundable before any exit costs after 7 years
= $472,000.00 </span></span></li><li><span style="color: black;"><span style="color: black; font-family: inherit;">Unit
Value after 7 years = $1,194,983.00 </span></span></li><li style="text-align: left;"><span style="font-family: inherit;"><span style="color: black;"><span style="color: black;">Capital
Gain at 5.9%pa to Operator = $394,983.00.00 </span></span> </span> </li></ol><span style="font-family: inherit;"><span style="color: red;"><b>After just 7 years the above </b></span><span style="color: red;"><b>Loan/Lease retirement </b></span><span style="color: red;"><b>village</b></span><span style="color: red;"><b> resident is </b></span></span><b style="color: red;">$1,194,983.00 – $472,000.00 =</b><span style="font-family: inherit;"><span style="color: red;"><b> $722,9</b></span></span><span style="font-family: inherit;"><span style="color: red;"><b>83.00 </b><b>worse off </b><b>than a retiree with outright property ownership. A</b></span></span><span style="color: red; font-family: inherit;"><b> reduction </b></span><span style="color: red; font-family: inherit;"><b>rate of</b></span><span style="color: red; font-family: inherit;"><b> some $1,984.56 per week </b></span><span style="color: red; font-family: inherit;"><b>of village occupancy</b></span><span style="color: red; font-family: inherit;"><b>.</b></span><span style="font-family: inherit;"> </span><span style="font-family: inherit;"> </span><span style="font-family: inherit;"> </span><div><div><p></p>
<span style="color: #333333; font-family: inherit;"><b>Model 2. </b><b>Loan/Lease
</b></span><span style="color: #333333; font-family: inherit;"><b>retirement </b></span><span style="color: #333333; font-family: inherit;"><b>village
with Deferred Management Fee (DMF) calculated on the </b><u style="font-weight: bold;">outgoing</u><b> value
of the unit. </b></span><span style="color: #333333;">A share of any capital gain is provided to the retiree.<b> </b>(51% of loan/lease marketplace)</span><b style="color: #333333; font-family: inherit;"> </b></div><div><ol><li><span style="color: black;">Industry average occupancy period 7 years </span></li><li><span style="color: black;">Retirement Village Living over 7 Year Lease Period </span></li><li><span style="color: black;">Retiree Capital = $800,000.00 </span></li><li><span style="color: black;">Ingoing Payment/Loan to Operator = $800,000.00 </span></li><li><span style="color: black;">Deferred Management Fee of 36% on the unit <u>outgoing</u> value = $430,194.00 (6%pa over first 6 years) </span></li><li><span style="color: black;">5% Sinking Fund Contribution on the unit <u>outgoing</u> value = $59,749.00 </span></li><li><span style="color: black;">Retiree Capital Cost = -$489,943.00 </span></li><li><span style="color: black;">Unit Value after 7 years = $1,194,983.00</span></li><li><span style="color: black;">Capital Gain at 5.9%pa = $394,983.00.00 - (Net Capital Gain to Retiree 64% = $252,789.00) - (Net Capital Gain to Landlord 36% = $142,194.00 </span></li><li><span style="color: black;">Resident Refundable before any exit costs after 7 years = $705,040.00 </span></li></ol><div><p></p>
<p align="left"><span style="font-family: inherit;"><span style="color: #333333;"><span style="color: #333333;"><span><span style="color: red;"><span style="color: red;"><b>After just 7 years the above </b></span><span style="color: red;"><b>Loan/Lease retirement </b></span><span style="color: red;"><b>village</b></span><span style="color: red;"><b> resident i</b></span><b>s </b></span></span><b style="color: red;">$1,194,983.00 – $705,040.00 = </b><span style="color: red;"><b>$489,943.00 </b></span></span></span></span><b style="color: red;">worse off </b><span style="color: red; font-family: inherit;"><b>than a retiree with outright property ownership. A reduction rate rate </b></span><span style="color: red; font-family: inherit;"><b>of some</b></span><span style="color: red; font-family: inherit;"><b> $1,346.00 per week </b></span><span style="color: red; font-family: inherit;"><b>of village occupancy</b></span><span style="color: red; font-family: inherit;"><b>.</b></span></p><p align="left"><span style="font-family: inherit;"><span style="color: #333333;"><span style="color: #333333;"><b>Model </b></span><span style="color: #333333;"><b>3. Outright </b></span><b>Property
Ownership - </b></span><span style="color: #333333;"><b>W</b></span><span style="color: #333333;"><b>ell
understood by retirees and their professional advisors.</b> </span><span style="color: #333333;"> </span></span></p><ol><li><span style="color: black;">Outright Property Ownership over 7 years </span></li><li>Retiree Capital = $800,000.00 </li><li>Ingoing Payment/Loan to Operator = $800,000.00 </li><li><span style="color: black;">Deferred Management Fee = n/a </span></li><li>Unit/Home Value after 7 years = $1,194,983.00</li><li><span style="color: black;">Capital Gain at 5.9%pa to Retiree = $394,983.00 </span></li><li><span style="color: #333333;">Retiree Capital after 7 years = </span>$1,194,983.00</li><li><span style="color: #333333;">Retiree Capital Increase = +$394,983.00</span></li></ol><b><span style="color: #38761d;"><span style="font-family: inherit;"><span>After </span><span>just </span><span>7 years the above Retiree is </span></span>$1,194,983.00 – $800,000.00 =<span style="font-family: inherit;"> $394,983.00 </span></span></b><b><span style="color: #38761d;">better off </span></b><b><span style="color: #38761d;"><span style="font-family: inherit;">through outright property ownership. An increase</span><span style="font-family: inherit;"> rate of some $1,085.11 per week of occupancy.</span></span></b></div><div><p align="left"><span style="font-family: inherit;"><span><span>Property
ownership delivers superior financial security to retirees,
it enables them to - </span></span></span></p><p align="left"></p><ul><li><span style="font-family: inherit;"><span><span>M</span></span><span><span>ove
to another retirement living property by maintaining pace with rising
property values. </span></span></span></li><li><span style="font-family: inherit;"><span><span>B</span></span><span><span>etter
fund their own Aged Care requirements rather than the taxpayer. </span></span></span></li><li><span style="font-family: inherit;"><span><span>E</span></span><span><span>nable
a higher allocation of funds to family/beneficiaries. </span></span></span></li><li><span style="font-family: inherit;"><span><span>Enables</span></span><span><span> access to the Federal Government Home Equity Scheme, denied to them
by </span></span><span><span>loan/lease
</span></span><span><span>retirement
village occupancy. </span></span></span></li></ul><p></p>
<p align="left"><span style="font-family: inherit;"><span><span>Real retirement village reform is desperately needed before many, many more retirees are condemned to
the destruction of their life savings. Destruction over just a few
years of their retirement by a single fateful decision, a decision to
enter a loan/lease retirement village. </span></span>
</span></p>
<p align="left"><span style="font-family: inherit;">“<span><span><i>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
corporations. Shame about elderly people not having enough money for
aged care” – Tom Galt, President – NSW Retirement Village
Residents Association.</i></span></span></span></p>
<p align="left"><span style="font-family: inherit;"><b><span><span>Which retirement living model would you choose? </span></span>
</b></span></p>
<ol>
<li><p align="left"><span style="font-family: inherit;"><b><span><span><span style="color: red;">-$722,983.00</span><span style="color: black;">
– 7 years of occupancy in a Loan/Lease </span>Retirement Village no capital gain </span></span>
</b></span></p>
</li><li><p align="left"><span style="font-family: inherit;"><b><span><span><span style="color: red;">-$489,943.00</span><span style="color: black;">
– 7 years of occupancy in a Loan/Lease </span>Retirement Village
with capital gain </span></span>
</b></span></p>
</li><li><p align="left"><span style="font-family: inherit;"><span><span><b><span style="color: black;">+$394,983.00</span><span style="color: #468a1a;">
–</span> <span style="color: black;">7 years of occupancy with Outright</span>
Property Ownership</b></span></span></span></p></li></ol><p align="left" style="line-height: 100%; margin-bottom: 0cm;"><span style="font-family: inherit;"><br /></span></p><p align="left" style="line-height: 100%; margin-bottom: 0cm;"><span style="font-family: inherit;">Note – The tables behind these calculations are included below for reference. </span></p><i align="left" style="font-family: inherit;"><ul style="text-align: left;"><li><i align="left" style="font-family: inherit;">Industry Data shows average occupancy period in a retirement village is between 7 and 8 years.</i></li><li><i align="left" style="font-family: inherit;">Corelogic data shows last 25 years residential housing capital gain rates at 8.1%, units 6.6%. </i> </li><li><i align="left" style="font-family: inherit;">Industry Data shows only 16 per cent of retirement village units are occupied on a freehold basis.</i></li><li><i align="left" style="font-family: inherit;">Industry data shows unit prices increased by 5.9% per annum over the last 25 years.</i></li></ul></i><p align="left" style="line-height: 100%; margin-bottom: 0cm;"><span style="font-family: arial;"><span style="color: black;"><b>Model 1 - Loan/Lease </b></span><span style="color: black;"><b>retirement </b></span><span style="color: black;"><b>village with Deferred Management Fee calculated on the ingoing value of the unit. No share of capital gain to retiree.</b></span></span></p><p style="line-height: 100%; margin-bottom: 0cm; text-align: left;"><span style="font-family: Times New Roman, serif;"><span><i></i></span></span></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEguH6H-HpP_cQg2SkByf8Lms4qhl68r-Yz4n27ur5H5oaOOMrKGpaLZf0lB31QWP4HpcWxVrwDM0-oqV5UIQyT4-jNmaXRHm_k4Fbpz_Ej5vopa_fn6f2hHg1e3ToHEcy1MZlqddI0-6J4QpJKW1VV_g0mXxg7YIxZ7CUnz7OavBeCe5_66ooH6fk5wFQ=s785" style="margin-left: 1em; margin-right: 1em;"><img alt="retirement village destruction of retiree capital table 1" border="0" data-original-height="428" data-original-width="785" height="348" src="https://blogger.googleusercontent.com/img/a/AVvXsEguH6H-HpP_cQg2SkByf8Lms4qhl68r-Yz4n27ur5H5oaOOMrKGpaLZf0lB31QWP4HpcWxVrwDM0-oqV5UIQyT4-jNmaXRHm_k4Fbpz_Ej5vopa_fn6f2hHg1e3ToHEcy1MZlqddI0-6J4QpJKW1VV_g0mXxg7YIxZ7CUnz7OavBeCe5_66ooH6fk5wFQ=w640-h348" width="640" /></a></div><br /><div style="text-align: center;"><br /></div><span><span><b><span style="font-family: arial;">Model 2 - </span></b></span></span><span style="font-family: arial;"><span style="color: #333333;"><b>Loan/Lease </b></span><span style="color: #333333;"><b>retirement </b></span><span style="color: #333333;"><b>village with Deferred Management Fee (DMF) calculated on the <u>outgoing</u> value of the unit. Share of capital gain is provided to the retiree.</b></span></span></div><div><span><span><span style="font-family: "Times New Roman", serif; font-size: 11pt;"><span style="color: #333333; font-family: arial; font-size: small;"><b><br /></b></span><div class="separator" style="clear: both; font-style: italic; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEjGP1BDXRdeuEL0Sfqrae7cYhdCdUb8Yzh8tjgpdWxCeNcr3q2dMHhZl20K4lY3WHW5Y0-FpirTN0cwq1WcqzuEkZt4skzAlnEuWtS4T-7KcyoGNI-F3HUqcr4bpReKXFQ5mOqLsW8di_6NGQP-wB2hZIx7t56LwMUkbPwUPi_As5aWBSPEVJRbV7YCig=s785" style="margin-left: 1em; margin-right: 1em;"><img alt="table 2 retirement village destruction of retiree capital" border="0" data-original-height="474" data-original-width="785" height="386" src="https://blogger.googleusercontent.com/img/a/AVvXsEjGP1BDXRdeuEL0Sfqrae7cYhdCdUb8Yzh8tjgpdWxCeNcr3q2dMHhZl20K4lY3WHW5Y0-FpirTN0cwq1WcqzuEkZt4skzAlnEuWtS4T-7KcyoGNI-F3HUqcr4bpReKXFQ5mOqLsW8di_6NGQP-wB2hZIx7t56LwMUkbPwUPi_As5aWBSPEVJRbV7YCig=w640-h386" width="640" /></a></div><br /><div class="separator" style="clear: both; font-style: italic; text-align: center;"><br /></div><br /><div class="separator" style="clear: both; font-style: italic; text-align: center;"><br /></div><br /><span style="background: rgb(255, 255, 255); font-style: italic;"><br /></span></span></span></span><p></p>
<p align="left"><br />
<br /><br />
</p></div><div class="separator" style="clear: both; text-align: center;"><br /></div><br /></div></div>retvill.nethttp://www.blogger.com/profile/16888232261277718561noreply@blogger.com0tag:blogger.com,1999:blog-409457341974170594.post-23986048440113793862021-10-23T10:08:00.005+11:002021-10-23T10:08:45.247+11:00Victorian Retirement Industry Ombudsman Needed<p> <span style="color: #050505; font-family: inherit; font-size: 11pt;">Could
the need for a Retirement Industry Ombudsman not be more amplified
than the real life VCAT case outlined below. A pensioner couple
versus the might of a Minter Ellison ready to smite them into legal
oblivion, if this couple is wrong in law then the law will do that
all by itself. Is this really what the Andrews state government wants
for their older citizens living under the umbrella of retirement
living. </span></p>
<p align="LEFT" style="font-style: normal; font-weight: normal; margin-bottom: 0cm; orphans: 2; widows: 2;">
<span style="color: #050505;"><span style="font-family: inherit;"><span style="font-size: small;">The
Victorian Civil Administrative Tribunal feature the following on
their web site under disputes over goods or services, 'If the
claim is for goods and services under $15,000, we generally don’t
allow a lawyer or other professional representative to speak for you
at VCAT'. The only reason VCAT can approve of legal
representation at a hearing is on the basis that 'the Tribunal
is satisfied that no other party to the proceeding will be unfairly
disadvantaged if the representation is allowed'. VCAT have seen
fit to grant a retirement village operator the right for the
legal firm Minter Ellison to defend them at a hearing against a
pensioner couple in a dispute over just $2,000. Is there not an
imbalance created here, an imbalance that is almost immeasurable.</span></span></span></p>
<p align="LEFT" style="font-style: normal; font-weight: normal; margin-bottom: 0cm; orphans: 2; widows: 2;">
<span style="color: #050505;"><span style="font-family: inherit;"><span style="font-size: small;">The
no legal representation under $15,000.00 principal does not deny
either party the right to legal advice prior to a hearing, it only
speaks of legal representation at a hearing. For claims relating to
goods or services under $15,000.00 each party is generally to present
their own case based on legal advice received prior to the hearing,
designed to level the playing field, to remove the legal formality of
a court room.</span></span></span></p>
<p align="LEFT" style="font-style: normal; font-weight: normal; margin-bottom: 0cm; orphans: 2; widows: 2;">
<span style="color: #050505;"><span style="font-family: inherit;"><span style="font-size: small;">VCAT
has followed a legal process, the one primary consideration however
is that the tribunal must be satisfied that no party will be unfairly
disadvantaged. The party negatively impacted here is a pensioner
couple and it is difficult to comprehend that this is not so in this
case. Would the mere cost to them of their own legal council to
represent them at the hearing not qualify as 'unfairly
disadvantaged'. Without financial resources a pensioner couple would
have to take the role of a Perry Mason against a legal firm such as a
Minter Ellison over matters of law, would that not qualify as
'unfairly disadvantaged'.</span></span></span></p>
<p align="LEFT" style="font-style: normal; font-weight: normal; margin-bottom: 0cm; orphans: 2; widows: 2;">
<span style="color: #050505;"><span style="font-family: inherit;"><span style="font-size: small;">This
is a very good example as to why VCAT is much too often a bridge too
far for most if not all retirement living residents, that the road to
consumer protection is too long and too arduous. The reality is the
effort required defeats all but the hardy, or is it the foolhardy.
Who will spend their retirement years standing against the legal
might of say a Minter Ellison, there is no greater imbalance here in
the battle over just $2,000. There is no greater example of why most
retirement village residents no matter how just the motives of their
case simply surrender, simply suffer the injustice being done to
them. There was once a claim that there is nothing wrong with
retirement villages as there are so few complaints, the answer to
that is in the cumulative experience of retirement living residents.</span></span></span></p><p align="LEFT" style="font-style: normal; font-weight: normal; margin-bottom: 0cm; orphans: 2; widows: 2;"><span style="color: #050505;"><span style="font-family: inherit;"><span style="font-size: small;"><br /></span></span></span></p>
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEhEhAZabnCPrw3YsK8H98CNrlXgyY3nxERYYi-NnQprvhytekuSzidGqehrmSlzSJ2q8R86pT33ut5t-m9Mqq7FbNiYahnkVXKgHsaeRVlhNFvJJuAmhvHYIKwk-gkUdhTnhVjR_QHoEfzRp8Oa88RyOFyI4tYQlHjugrRDjwEcHRmpb5uLtHkq-K4Qcg=s1024" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="512" data-original-width="1024" height="200" src="https://blogger.googleusercontent.com/img/a/AVvXsEhEhAZabnCPrw3YsK8H98CNrlXgyY3nxERYYi-NnQprvhytekuSzidGqehrmSlzSJ2q8R86pT33ut5t-m9Mqq7FbNiYahnkVXKgHsaeRVlhNFvJJuAmhvHYIKwk-gkUdhTnhVjR_QHoEfzRp8Oa88RyOFyI4tYQlHjugrRDjwEcHRmpb5uLtHkq-K4Qcg=w400-h200" width="400" /></a></div><br /><p style="margin-bottom: 0cm;"><br />
</p>retvill.nethttp://www.blogger.com/profile/16888232261277718561noreply@blogger.com0tag:blogger.com,1999:blog-409457341974170594.post-46535479375686310982021-08-24T06:37:00.001+10:002021-08-24T06:37:29.441+10:00Problem - Retirement Village<blockquote class="twitter-tweet"><p lang="en" dir="ltr">"My father must have been one of the few people who lost money when he sold his home in a booming Melbourne property market, despite it selling for more than he paid for it. The problem? He bought into a retirement village." - Diana Thorp <a href="https://twitter.com/consumervic?ref_src=twsrc%5Etfw">@consumervic</a> <a href="https://twitter.com/hashtag/vicpol?src=hash&ref_src=twsrc%5Etfw">#vicpol</a> <a href="https://twitter.com/hashtag/springst?src=hash&ref_src=twsrc%5Etfw">#springst</a> <a href="https://twitter.com/hashtag/auspol?src=hash&ref_src=twsrc%5Etfw">#auspol</a> <a href="https://t.co/ZISFWN8j3T">pic.twitter.com/ZISFWN8j3T</a></p>— Les Scobie (@retvilldotnet) <a href="https://twitter.com/retvilldotnet/status/1429902457929289731?ref_src=twsrc%5Etfw">August 23, 2021</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>retvill.nethttp://www.blogger.com/profile/16888232261277718561noreply@blogger.com0tag:blogger.com,1999:blog-409457341974170594.post-44616139854408314902021-08-24T06:35:00.001+10:002021-08-24T06:35:17.550+10:00Desperate For Mandatory Evacuation Plans<blockquote class="twitter-tweet"><p lang="en" dir="ltr">And the mandatory emergency evacuation plans for vulnerable Victorians living in retirement villages are coming when? The Minister responsible for retirement village law stated that responsibility lies elsewhere. Where, with who? <a href="https://twitter.com/hashtag/vicpol?src=hash&ref_src=twsrc%5Etfw">#vicpol</a> <a href="https://twitter.com/hashtag/springst?src=hash&ref_src=twsrc%5Etfw">#springst</a> <a href="https://twitter.com/consumervic?ref_src=twsrc%5Etfw">@consumervic</a> <a href="https://twitter.com/DanielAndrewsMP?ref_src=twsrc%5Etfw">@DanielAndrewsMP</a> <a href="https://t.co/36yKjpKggb">pic.twitter.com/36yKjpKggb</a></p>— Les Scobie (@retvilldotnet) <a href="https://twitter.com/retvilldotnet/status/1429903949990023172?ref_src=twsrc%5Etfw">August 23, 2021</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>retvill.nethttp://www.blogger.com/profile/16888232261277718561noreply@blogger.com0tag:blogger.com,1999:blog-409457341974170594.post-59953265049346094542021-07-27T15:27:00.003+10:002021-07-27T15:27:47.857+10:00New Resident Higher Charge<blockquote class="twitter-tweet"><p lang="en" dir="ltr">For Vic <a href="https://twitter.com/hashtag/retirementvillage?src=hash&ref_src=twsrc%5Etfw">#retirementvillage</a> residents a legal opinion has been obtained. It is a breach of the Act for an operator to charge a 'new' resident a higher maintenance charge than current residents. Anyone being impacted should seek professional advice. <a href="https://twitter.com/HAAGHomeAtLast?ref_src=twsrc%5Etfw">@HAAGHomeAtLast</a> <a href="https://twitter.com/Katherine_M_T?ref_src=twsrc%5Etfw">@Katherine_M_T</a> <a href="https://t.co/pkCZeMcKGI">pic.twitter.com/pkCZeMcKGI</a></p>— Les Scobie (@retvilldotnet) <a href="https://twitter.com/retvilldotnet/status/1419878241305645056?ref_src=twsrc%5Etfw">July 27, 2021</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>retvill.nethttp://www.blogger.com/profile/16888232261277718561noreply@blogger.com0tag:blogger.com,1999:blog-409457341974170594.post-91793728956286703572021-07-27T15:26:00.004+10:002021-07-27T15:26:44.360+10:00Older Women Experiencing Homelessness<blockquote class="twitter-tweet"><p lang="en" dir="ltr">HAAG strongly supports the need for the Social Housing Regulation Review. However, older women are a fast-growing cohort of people experiencing homelessness, and their unique housing needs are barely acknowledged <a href="https://t.co/UKiLVTYyMk">https://t.co/UKiLVTYyMk</a> <a href="https://twitter.com/hashtag/everybodyshome?src=hash&ref_src=twsrc%5Etfw">#everybodyshome</a></p>— Housing for the Aged Action Group (@HAAGHomeAtLast) <a href="https://twitter.com/HAAGHomeAtLast/status/1417306601615204356?ref_src=twsrc%5Etfw">July 20, 2021</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>retvill.nethttp://www.blogger.com/profile/16888232261277718561noreply@blogger.com0tag:blogger.com,1999:blog-409457341974170594.post-55991691999460557312021-07-27T15:25:00.004+10:002021-07-27T15:25:26.367+10:00Victorian Renters Rights<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Shane and Fiona talking about the new and improved renters rights under the Residential Tenancies Act with Georgia from <a href="https://twitter.com/TenantsVic?ref_src=twsrc%5Etfw">@TenantsVic</a> - listen in to the latest podcast here <a href="https://t.co/1jXyGH88Ll">https://t.co/1jXyGH88Ll</a> on <a href="https://twitter.com/3CR?ref_src=twsrc%5Etfw">@3CR</a></p>— Housing for the Aged Action Group (@HAAGHomeAtLast) <a href="https://twitter.com/HAAGHomeAtLast/status/1415809656702767104?ref_src=twsrc%5Etfw">July 15, 2021</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>retvill.nethttp://www.blogger.com/profile/16888232261277718561noreply@blogger.com0tag:blogger.com,1999:blog-409457341974170594.post-56757496663316129072021-07-27T15:24:00.003+10:002021-07-27T15:24:27.498+10:00Citizens With Energy to Challenge<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Responsible authorities baulk at defending the laws of the land. Takes citizens with sufficient energy to challenge and a supportive member of the legal profession to draw cases to a legal determination. <a href="https://twitter.com/hashtag/vicpol?src=hash&ref_src=twsrc%5Etfw">#vicpol</a> <a href="https://t.co/I6wAVKJqTC">pic.twitter.com/I6wAVKJqTC</a></p>— Les Scobie (@retvilldotnet) <a href="https://twitter.com/retvilldotnet/status/1415576122255765505?ref_src=twsrc%5Etfw">July 15, 2021</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>retvill.nethttp://www.blogger.com/profile/16888232261277718561noreply@blogger.com0tag:blogger.com,1999:blog-409457341974170594.post-31507655710288192322021-07-27T15:22:00.002+10:002021-07-27T15:22:20.559+10:00Charities To Be Gagged<blockquote class="twitter-tweet"><p lang="und" dir="ltr"><a href="https://twitter.com/hashtag/auspol?src=hash&ref_src=twsrc%5Etfw">#auspol</a> <a href="https://twitter.com/ScottMorrisonMP?ref_src=twsrc%5Etfw">@ScottMorrisonMP</a> <a href="https://t.co/6xVS6PsrCW">https://t.co/6xVS6PsrCW</a></p>— Les Scobie (@retvilldotnet) <a href="https://twitter.com/retvilldotnet/status/1414808157642059777?ref_src=twsrc%5Etfw">July 13, 2021</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>retvill.nethttp://www.blogger.com/profile/16888232261277718561noreply@blogger.com0tag:blogger.com,1999:blog-409457341974170594.post-82355634135265342512021-07-27T15:21:00.000+10:002021-07-27T15:21:02.396+10:00Able To Grow Older At Home<blockquote class="twitter-tweet"><p lang="en" dir="ltr">WE WON and there is now a national code that means new homes must be built to be accessible for people at all stages of their lives! This keeps people healthy and able to grow older at home. But some states are still holding out, worried that this costs developers profit margins? <a href="https://t.co/ceDwd4tRUE">pic.twitter.com/ceDwd4tRUE</a></p>— Housing for the Aged Action Group (@HAAGHomeAtLast) <a href="https://twitter.com/HAAGHomeAtLast/status/1409996361886584837?ref_src=twsrc%5Etfw">June 29, 2021</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>retvill.nethttp://www.blogger.com/profile/16888232261277718561noreply@blogger.com0