Looked at a retirement village near Toowoomba on the weekend. House prices for a 3 bed, 1 bath 2 toilets in the area is around $350k to $450k. For a 2 bedroom villa, 1 bath 2 toilets the entry fee is $300k. For this amount you do not own the building or the land but merely purchase what they call a lease which is valid for the duration of your stay. This is also subject to CPI yearly increase. You also pay $100 per week rent which takes car of expenses such as rates, water, gardening and I guess some upkeep. Power and phone and other consumables are at your costs. These villas are brand new. Exit fees are calculated on 6% of your 'purchase' price for the first 6 years - maximum 36%. Upon exiting, in a box or otherwise, they will refurbish the property and you pay 50% of this cost. Should there be any capital gain (you come in at 300k and the value has increased to 400k), they also take 50%.
Now, apparently, this is quite legal in terms of various government legislations for the area. Some people actually live there and are happy and think it is wonderful.
larry
Roving-Dutchy said
05:45 PM Oct 26, 2015
All absolutely above board, definitely not a scam and when you leave in a box are you really going to care.
My mother was in a retirement village during the latter part of her life, she was well looked after and her health initially picked up and she was very happy there, so in the long run that was all that really mattered, yes there were similar costs involved as in the initial post.
Cheers
David
madaboutled said
06:29 PM Oct 26, 2015
I supose that's the difference between a retirement village & a lifestyle village. We live in a over 55's Lifestyle village, we own the house 100% but lease the land. Should we decide to sell there are no exit fees or other penalities.
Roving-Dutchy said
07:27 PM Oct 26, 2015
The is a great difference in a lifestyle village and a retirement village and the main thing is the level of assistance and care that is provided in a retirement village some of these are provision of meals ,nurses on call, cleaning of rooms and the laundering of bedding, availability of care if an occupant becomes ill,some of the larger ones have an in house doctor and visiting hairdressers etc.
So it is really horses for courses.
Cheers
David
Bevandy2 said
11:37 PM Oct 26, 2015
Choice Online recently had an article about these, warning of the pitfalls and traps one can fall into, however, as previously said, not a scam, but there are different ways they do business at these places and pays to do the homework thoroughly, and don't lose the kids inheritance after you die because some contract gives nothing back after you die.
If I was in one of those places I'd want to know that my grand kids were going to benefit from the asset after I die.
Big difference between retirement village and nursing home, but both require thorough research before making a commitment.
There a number of services available these days to enable us to stay in our homes too, but of course we all have different circumstances.
Cupie said
11:45 PM Oct 26, 2015
madaboutled wrote:
I supose that's the difference between a retirement village & a lifestyle village. We live in a over 55's Lifestyle village, we own the house 100% but lease the land. Should we decide to sell there are no exit fees or other penalities.
I have friends who recently moved into one of these at the Gold Coast & they are extremely happy.
I was amazed at the facilities that were available to them ... like Indoor & outdoor pools, full sized pool table, Gold Class standard theater with loads of the latest movies, saunas, workshop, Library, Lawn Bowls, place to store van under cover (small weekly charge), Craft room with regular free lessons, outdoor gas BBQs in a landscaped garden, squash court I think, Tennis courts all free to use ..... good deal at the pub across the road with discounts & regular free functions. They have a well priced quality village bistro & coffee lounge that is open on a regular basis.
Gives them a worry free home with no problems when they take of on their regular cruises (using up some of the cash freed with the sale of their home in the burbs).
Not for me but suits them very well after around 12 months.
ps. And they get some sort of 'rent assistance' to help with the 'rent' of the land that their 3 bedroom cottage sits on. About 60% of the land rent I think.
-- Edited by Cupie on Monday 26th of October 2015 11:49:02 PM
The Phantom said
11:50 PM Oct 26, 2015
To my mind they are a scam. The companies that promote these places have no interest in providing their clients with a viable lifestyle, they are only interested in the profit that the company can make.
Read this article by respected financial reporter Alan Kohler for a better understanding: http://www.abc.net.au/news/2014-07-10/kohler-retirement-village-rorts:-the-booming-national-scandal/5584412
The Phantom
Bevandy2 said
12:07 AM Oct 27, 2015
Thanks Phantom, good comment and article, we do need to go in with our eyes wide open. Big business.
Presumably the new gov't has a minister for this stuff, we should all gang up on her/him with this article and demand an investigation.
villatranquilla said
08:10 AM Oct 27, 2015
another issue for a family I know was that after mum moved out the the company took responsibility for selling the unit, the family had no say in this. The weekly service fee was still charged while the unit was re-furbished and up until it was sold - about 6 mths.
Looked at a retirement village near Toowoomba on the weekend. House prices for a 3 bed, 1 bath 2 toilets in the area is around $350k to $450k. For a 2 bedroom villa, 1 bath 2 toilets the entry fee is $300k. For this amount you do not own the building or the land but merely purchase what they call a lease which is valid for the duration of your stay. This is also subject to CPI yearly increase. You also pay $100 per week rent which takes car of expenses such as rates, water, gardening and I guess some upkeep. Power and phone and other consumables are at your costs. These villas are brand new. Exit fees are calculated on 6% of your 'purchase' price for the first 6 years - maximum 36%. Upon exiting, in a box or otherwise, they will refurbish the property and you pay 50% of this cost. Should there be any capital gain (you come in at 300k and the value has increased to 400k), they also take 50%.
Now, apparently, this is quite legal in terms of various government legislations for the area. Some people actually live there and are happy and think it is wonderful.
larry
My mother was in a retirement village during the latter part of her life, she was well looked after and her health initially picked up and she was very happy there, so in the long run that was all that really mattered, yes there were similar costs involved as in the initial post.
Cheers
David
I supose that's the difference between a retirement village & a lifestyle village. We live in a over 55's Lifestyle village, we own the house 100% but lease the land. Should we decide to sell there are no exit fees or other penalities.
So it is really horses for courses.
Cheers
David
Choice Online recently had an article about these, warning of the pitfalls and traps one can fall into, however, as previously said, not a scam, but there are different ways they do business at these places and pays to do the homework thoroughly, and don't lose the kids inheritance after you die because some contract gives nothing back after you die.
If I was in one of those places I'd want to know that my grand kids were going to benefit from the asset after I die.
Big difference between retirement village and nursing home, but both require thorough research before making a commitment.
There a number of services available these days to enable us to stay in our homes too, but of course we all have different circumstances.
I have friends who recently moved into one of these at the Gold Coast & they are extremely happy.
I was amazed at the facilities that were available to them ... like Indoor & outdoor pools, full sized pool table, Gold Class standard theater with loads of the latest movies, saunas, workshop, Library, Lawn Bowls, place to store van under cover (small weekly charge), Craft room with regular free lessons, outdoor gas BBQs in a landscaped garden, squash court I think, Tennis courts all free to use ..... good deal at the pub across the road with discounts & regular free functions. They have a well priced quality village bistro & coffee lounge that is open on a regular basis.
Gives them a worry free home with no problems when they take of on their regular cruises (using up some of the cash freed with the sale of their home in the burbs).
Not for me but suits them very well after around 12 months.
ps. And they get some sort of 'rent assistance' to help with the 'rent' of the land that their 3 bedroom cottage sits on. About 60% of the land rent I think.
-- Edited by Cupie on Monday 26th of October 2015 11:49:02 PM
To my mind they are a scam. The companies that promote these places have no interest in providing their clients with a viable lifestyle, they are only interested in the profit that the company can make.
Read this article by respected financial reporter Alan Kohler for a better understanding: http://www.abc.net.au/news/2014-07-10/kohler-retirement-village-rorts:-the-booming-national-scandal/5584412
The Phantom
Presumably the new gov't has a minister for this stuff, we should all gang up on her/him with this article and demand an investigation.