What is wrong with Retirement Villages

 What is wrong with Victorian loan/lease retirement villages? 

1. Property Ownership is never granted.
2. You paid for it but you don't get to own it. 
3. You only 'rent' it. 
4. This through deceptive names like 'entry payment' and 'deferred management fee' that obscure the true $ cost.
5. You pay for management of the property even though you don't own it.
6. You pay for upkeep of the property even though you don't own it.

Retirement Village Fox in the Hen House by Government Decree

The new proposed Victorian Retirement Villages Act 1986 has put the Fox in the Henhouse by government decree. 

As though written by operators for operators, brushing residents aside in their insatiable pursuit of even bigger profits.

Jacinta Allan Govt Moves Against Retirees

The Victorian Jacinta Allan Labor Government is moving against Victorian retirees by mandating that retirement village residents will now have to wait 12 months to get their refundable money back on leaving the village. 

How do they fund themselves over that period? An absolute con job by the industry.

The government seduced by the industry into believing that they do not have the money to repay the outgoing retiree. This money was paid to the village operator by the retiree before they could move into the village.

It shows a clear failure of the industry to manage cash flow, and a clear failure of the government to understand the principle of cash flow management.

Getting stuck in the retirement village trap

Exit fees and other hidden costs mean many residents can’t really afford to leave." - Choice

Click here for the full article - Getting stuck in the retirement village trap

"Getting stuck in the retirement village trap -
Exit fees and other hidden costs mean many residents can’t really afford to leave." - Choice https://t.co/r6DlSguHWC 

— Les Scobie (@retvilldotnet) December 27, 2024

Retirement Villages Have Had Their Day

Retirement villages — walled, gated and separate seniors' enclaves — have had their day according to this article at ABC News - https://www.abc.net.au/news/2020-05-11/retire-the-retirement-village/12229702

"The word "retirement" is redundant and engagement between people of all ages is high. That's how participants in the Longevity By Design Challenge envisage life in Australia in 2050.

Their challenge was to identify ways to prepare and adapt Australian cities to capitalise on older Australians living longer, healthier and more productive lives. Their vision, outlined in this article, offers a positive contrast to much of the commentary on "ageing Australia"."

Read the full article at this link - Retirement villages have had their day

Retirement Village Retiree Capital Destruction

This is what the #retirementvillage industry really looks like to unsuspecting retirees. Few legislators understand this reduction in capital value of retirees. Even @ScottMorrisonMP is not identifying the long term impact on their ability to fund their own aged care costs. pic.twitter.com/eLz02WJ28x

— Les Scobie (@retvilldotnet) March 1, 2020

Retiree Life Savings Decimated

The life savings of #retirementvillage residents get decimated on departure. Eg: contract says resident gets 100% of capital gain, in reality only get 60%. Deceptive, YES. Who cares? Nobody. @DanielAndrewsMP @MarleneKairouz @consumervic @michaelobrienmp #springst @NSW_FairTrading pic.twitter.com/loCtcMhCtM

— Les Scobie (@retvilldotnet) December 26, 2019

Destruction Of Retiree Life Savings

Retirement Village - Pay a 'buy' price to enter. No ownership only occupancy, Only get 60% back on exit - Pay maintenance, Refurbishment, Selling costs, all on property you do not own. Your financial destiny is? #vicpol @MarleneKairouz @consumervic #springst @GayleTierney #auspol pic.twitter.com/nVoBFSiant

— Les Scobie (@retvilldotnet) December 24, 2019

Wishing Everyone A Merry Christmas

Wishing everyone a Merry Christmas. Asked Santa for meaningful reforms to the Victorian Retirement Villages Act. His elves in Spring St. have trouble producing them, perhaps 2020 is the year. Thoughts are with all those impacted by fires this Christmas season. #springst #vicpol pic.twitter.com/0TD9aT37Ar

— Les Scobie (@retvilldotnet) December 22, 2019

Delivering For All Victorians We'll See In 2020

Let us hope 'FAIRNESS' becomes No.1 in #retirementvillage reforms. It is sorely needed as to this point Victoria is lagging well behind. 'Delivering for ALL Victorians' will be tested in 2020. #vicpol @DanielAndrewsMP @MarleneKairouz @consumervic @michaelobrienmp #springst pic.twitter.com/yjQFaS3bin

— Les Scobie (@retvilldotnet) December 20, 2019

Votings Rights of Single Retirement Village Residents Trampled.

Retirement Village advocate Les Scobie has written to the relevant minister over concerns the voting rights of single Retirement Village residents are being trampled.

"The Hon. Marlene Kairouz,

Minister for Consumer Affairs,

Level 16, 121 Exhibition Street,

Melbourne. Vic. 3000.

Dear Minister,

Re:- Need for amendment to Section 38(4) of the Retirement Villages Act 1986.

In the Act under Section 3 Definitions the voting rights of couples (not co-tenants) at an annual meeting are defined as having only one vote.

RETIREMENT VILLAGES ACT 1986 - SECT 3

Definitions
(2) If—
(a) under Part 6 a resident may vote at an annual meeting; and
(b) that resident and another resident or other residents are jointly entitled (whether as joint tenants or tenants in common) to share accommodation at a retirement village—
the right to vote conferred by that Part may be exercised by one only of those residents and, if those residents disagree as to which of them is to exercise the right to vote, the resident whose name appears first on the residence contract conferring the joint residence right may exercise the right to vote.


This provides protection for single retirement village residents in that their voting power on important matters is no less than a couple.


However when it comes to an increase in village fees beyond an increase in the rise of the Consumer Price Index, Section 38.4 of the Act allows a vote of couples to be double the voting power of a single resident.

RETIREMENT VILLAGES ACT 1986 - SECT 38 Increases in maintenance charges

4. Subsection (2) does not apply if the payment of a maintenance charge that is greater than the adjusted maintenance charge has been approved by resolution of a majority of the residents at a meeting of the residents or is approved by resolution of the residents committee.

Section 38.4 either by design or default is allowing village operators to work around a protection afforded single residents by Part 2 of Section 3 of the Act the Definitions. The lived experience being operators present to the body of village residents Section 38.4 alone without Section 3. The words 'residents' and 'meeting' in their stand alone literal meaning can easily be interpreted as removing any voting power protection for single residents. The legislation may in fact be designed to produce this result but if so it contains a gross unfairness for single retirement village residents.



In the interest of improved financial protections for single retirement village residents consideration should be given to amending Section 38.4 to read -

4. Subsection (2) does not apply if the payment of a maintenance charge that is greater than the adjusted maintenance charge has been approved by resolution of a majority of the residences voting at an annual general meeting of the residents or is approved by resolution of the residents committee.
   

It may be argued that the voting power of single residents are still protected by the definitions in Section 3 of the Act despite the wording of Section 38.4, that the use of the words 'residents' and 'meeting' in Section 38.4 are just a general reference. Clarity in the law however is just as desirable as clarity in any contract.
Please give serious consideration to amending Section 38.4 by the removal of the words 'residents' and 'meeting' to be replaced by the phrase 'residences voting at an annual general meeting'. Single retirement village residents should have identical voting power to couples particularly on matters that can have a negative financial impact upon them.


Thank you,

Les Scobie,"

Retirement Village Industry Shows Ugly Side.

The #retirementvillage industry shows its ugly side again, when will legislators learn. https://t.co/1g8RuXg5yO This industry is not about the provision of benevolent housing for retirees, it is about MONEY, MONEY, MONEY. #qldpol @AnnastaciaMP @katejonesqld @DebFrecklington

— Les Scobie (@retvilldotnet) September 9, 2019

Misleading Retirement Village Information

Consumer Vic still publishing material with capacity to mislead retirees. I have lived the experience and can assure every legislator that the @consumervic statements in question are inaccurate. Time for the Minister @MarleneKairouz to act. #vicpol @abc730 @acccgovau @moniquehore pic.twitter.com/fTdMltpaWQ

— Les Scobie (@retvilldotnet) September 7, 2019

Heartbroken AVEO Retirement Village Residents

The Courier Mail reports -

"ONE of Australia’s largest retirement village operators Aveo Group has denied accusations of elder abuse against residents of an inner-Brisbane village.

Residents of Newmarket Aveo Village claim the company’s conduct over its planned redevelopment of their homes has left many of them “wishing to die”.

They allege Aveo Group turned their “quiet, happy, functional place” into a “nightmare retirement” that is like the “drip-drip-drip of Chinese water torture or the death of a thousand cuts”.

The company has denied the claims or any knowledge of allegations of elder abuse or exploitative conduct against it."

Read the full story here - https://www.couriermail.com.au/questnews/north/heartbroken-retirement-village-residents-wishing-to-die/news-story/db1f41bdfa5402c54296b2114f5746b8

Retiree Life Savings Impacted By Housing Choices

Why the life savings of retirees move downwards after entering a loan/lease #retirement village. Retirees now more rather than less likely to require taxpayer assistance for Aged Care funding. @Kevinandersonmp @GladysB @mckay_jodi @NSW_FairTrading #nswpol #agedcare #agedcarerc pic.twitter.com/P0BUdKM81O

— Les Scobie (@retvilldotnet) July 28, 2019

Retiree Housing Policy & Aged Care Funding

Is government policy on retiree housing simply self-defeating? Short term boost to spending but giant hit to existing problem, Aged Care Funding and the impact on the budget and taxpayers. #agedcare #agedcarerc @MichaelWestBiz @acccgovau @JoshFrydenberg @AlboMP @annabelcrabb pic.twitter.com/OMEmSkk5NY

— Les Scobie (@retvilldotnet) July 26, 2019

Government Retiree Housing Policy Self Defeating

This seems to be government policy on senior housing. Isn't the danger short term boost to spending but giant hit to an existing problem, Aged Care Funding and the impact on the budget and taxpayers. #auspol @ScottMorrisonMP @JoshFrydenberg #pensioners @MichaelPascoe01 @AlboMP pic.twitter.com/o6MHChiXz1

— Les Scobie (@retvilldotnet) July 25, 2019

Retirees Requiring Taxpayer Funding for Aged Care is Increased

The number of retirees requiring taxpayer funding for aged care is increased by #retirementvillages as retiree nest eggs diminish over time. When will the federal government finally realise this and take action. #auspol #agedcarerc #pensioners @JoshFrydenberg @AlboMP @aus_senior pic.twitter.com/gukpDi4M4a

— Les Scobie (@retvilldotnet) July 19, 2019

Pensioners Seek Social Services Minister Anne Ruston Apology

The Senior Magazine reports -

Social Services Minister Anne Ruston has come under fire for suggesting the pension is generous, as seniors groups and Labor call for more changes to help older Australians.

Senator Ruston embarked on a media blitz on Monday to sell the coalition government's decision to give a boost to some pensioners.

"It is a generous amount of money that the Australian taxpayers make available to our older Australians," she told 3AW on Monday.

When pressed on the comments, Senator Ruston said: "In terms of the amount of money that taxpayers fund our social welfare system, we put a lot of money into it."

Read the full story here - https://www.thesenior.com.au/story/6275720/minister-in-hot-water-over-pension-comment/

Drain of Retiree Capital Wealth

How much does this excessive drain of capital away from retirement village residents ultimately cost the taxpayer and the Aged Care budget. When will the government 'really' look at what is happening. @richardmcolbeck @JulieCollinsMP @JoshFrydenberg @AlboMP #agedcareRC #auspol pic.twitter.com/PjDdEJ2ltU

— Les Scobie (@retvilldotnet) July 15, 2019