Correct, it’s upon exit that the realisation begins. Mind you, if you are well aware that there is no improved value on the property upon exit that’s fine. The shock many people don’t realise is that if/when they transition to aged care, they must be financially sound to deal with that transition (depending on the length of term) and that the retirement village home will not financially support this transition if need be.
One ABC report devulged a village corp charging an exiter, a fee for replacing all door hinges and also a cleaning fee which was double the standard fee.
I know people should do their homework before entering into these contracts but taking advantage of aged people who are vulnerable is a different story.
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Syncretic
I agree with the points you raise about the PwC Property Council report. I guess I was somewhat naive in believing that the NPS was based on input from residents. I will be more cautious in future about believing what I read and thank you for putting me straight.
I also agree that reports like those from Choice and the ABC do a good job in identifying issues of concern. These reports will, hopefully, lead to investigation and appropriate action by the appropriate authorities.
I am not trying to defend the industry as a whole. It is an unfortunate fact of life wherever substantial amounts of money are involved, predators will appear. My primary concern remains that these reports could have recognised that there are good providers doing the right thing (as I have experienced with myself and my mother in different villages), rather than giving the impression that the whole industry is shonky.
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Healthy discussion - but at the end of the day the private retirement villages contracts and conditions are totally unregulated - and the overwhelming evidence is that this industry does take advantage of elderly people who are facing a huge transition at the last sprint in their lives. And if we look at Aged Care in general the treatment of elderly people in Australia is abhorrent.
And many elderly know that and desperately seek something more decent in these private retirement villages. Only to get caught by complex contracts that they cannot ever be expected to understand - and require specialised expert legal advice - which they do not know where to get - and end up brainwashed by the village operators and their slick marketing staff.
The transition is involved - and with the trend in property prices the elderly moving to a retirement village should NOT LOSE THEIR LIFE SAVINGS.
But this transition is not that complex - and a template contract that protects the elderly first and foremost - is possible.
The authorities just need to invest in developing this template - and then make it compulsory for all private retirement village operators to use it…
Plus - authorities must provide a list (panel) of legal experts who have special additional qualifications to review such contracts - and explain them to the elderly people.
These legal experts on this panel must also sign a “NO conflict of interest” statement that they are not affiliated in any way with any retirement village operators…
Let us clean up the reputation of this industry - especially for the sake of the honest operators who have had their reputation tarnished by bad apples.
Which just don’t know how many bad apples exist - but from the recent media reaction - its more that just “a few bad apples”…
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The trouble with retirement villages as I see it is there are too many old people. Try not to laugh. Out in the general community people mix with all ages daily. Who wants to see just one group of people represented daily. There is a difference between the “lifestyle” villages for “over 50’s” and nursing home style accommodation of course.
Victoria has taken a lead to set a mandatory code for operators to avoid ‘surprises’ for residents that were missed in small print or incorrectly assumed.
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I have followed the conversation here and agree with Bigwave. The problem with many people who choose to live in a retirement village is that they do not read the contract, make sure that they understand all the costs and get recommended legal advice. When my late husband and I made the decision to downsize into a retirement village seven years ago, the village operators recommended that we get legal advice. This we did and also spoke to many friends who had made the decision and were very happy. The advice to us was that we were investing in a lifestyle not investing in property. That we would have refurbishing costs and other exit fees and dependent of how the property market was going, we may lose some of the lifetime lease money we were investing.
We were also aware of our monthly service fees that paid for the many amenities and community facilities available and the cost of wages for management and general staff. That the villa we would live in would be insured and maintained and that we would be responsible for contents insurance and general maintenance inside our home. There have been a few recent reforms made to Retirement Village laws in WA that will apply later in 2025 (Retirement Villages Amendment Act 2024). These included changes to how long operators can take to pay out exit fees and an option that residents can get help paying for aged care fees while the villa is being refurbished and sold/leased again and their money released.
My biggest issue is that Choice’s article is likely to put people off this wonderful way to downsize and age in a community of likeminded people rather than ageing at home and becoming isolated and lonely, expecting family members to provide support and company. So many interesting activities that keep all those who participate connected, often testing our brains and certainly enjoying exercise, happy hours, choir and much more. Especially during COVID, I was so happy I was living in my community – always someone to chat to, even if we had to keep 2metres apart. And when my husband passed away, I had so much support from friends and neighbours. How alone I would have been if we had downsized into a smaller house or an apartment with mostly younger neighbours out at work all week. Points made in the article about investing in a Retirement Village ending up costing more that a strata home. Really? And what do you get for those charges? Are the units specially designed with wider corridors, easy to access showers and toilets, security, emergency buttons and supported activities to keep you happy and connected to the world?
Certainly, there may be some retirement village operators who do not have fair contracts but surely when making the huge decision to move into a village all the contracts and rules should be checked thoroughly beforehand. If you do not understand what your responsibilities and charges will be while living there, and when you decide to leave the village, then you only have yourself or your guardian to blame.
As a long-time subscriber to Choice, I was dismayed to read the article. Many people who even bother reading Choice, let alone subscribe, are in the older demographic, and reading such negative articles, does nothing to make me feel my yearly fees are a good investment. Sure, point out some of the issues that may arise, but please be fair about the very many positives most of us enjoy in this lifestyle decision.
It is also very important that members of this community understand the difference between aged care and a retirement village. Retirement villages are recommended for seniors who can still live independently. I see that my response is to a conversation held last year while I am commenting on the March 2025 edition of Choice - Retirement Village Trap being the article.
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A very well written article Memsahib, thanks for sharing your story. AS one of a couple that moved into a Retirement Village, it was a fascinating read. After a major heart attack and then a stroke, my wife and I sat down and decided to move into an over 55s lifestyle village whilst we still could and whilst we chose to before we had to.
It is of course a BIG step and a HUGE decision.
Our first foray was into a village adminisistered under the relevant Caravan and Camping Act. No exit fees, but very large fortnightly lease/admin costs. That didn’t work out for various reasons, so we moved into a Retirement Village under the Retirement Villages Act.
Both could not be more different.
Neither were are perfect, but we are happer in our current place than we were with the previous one.
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Assume the references are to state/territory legislation. The same but different depending on where one resides. Some advice on which state or territory could assist others to relate to the experience shared.
Eg QLD - Three options. The first the Retirement Villages Act 1999. Alternately a Manufactured Homes (Residential Parks) Act 2003. Finally long term accomodation in a caravan park etc. The applicable legislation for the last mentioned and for anyone renting in a Residential Park (IE not an owner occupier) is the Residential Tenancies and Rooming Accomodation Act 2008.
Queensland recently amended their Retirement Villages Act. The Industry is often criticised nationally by retirees seeking to exit/change where they live. Similar levels of complaint from families when left to resolve vacancy on the occupier moving into aged care or passing. The changes have varying implementation dates.
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