Retirement Village Resources, Ripoffs, Security, and Issues

Hi Brendan I replied via email earlier today as couldn’t log in at the time :
“Thanks Brendan,
good article by Andy Kollmorgen, comprehensively covers most of the issues.
As well as the share your story option can choice also have a petition for clearer contracts as per recommendations?
Also be good to add a bit about why many are attracted to living in
retirement villages (safety, community, downsizing… and the advertising
con of “being looked after by caring staff”) and where can receive the
same if stay in own home or move to alternatives
cheers wendy”

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Thanks @wend, appreciate the thoughts. All good points and I’ll be sure to share your thoughts with my colleagues as we’re sure to be involved in these issues in the future.

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The response from that Executive Officer, or whatever title he glorifies in, on Lateline was appalling. He was trying to justify the impossible. All he could do was repeat the same mantra over and over again that they have 182.000 (or whatever the number) of residents and their surveys show that all of them are happy. He was so unconvincing.
I’ll bet if they conducted a proper audited survey of past and present residents and more particularly, their families, they wouldn’t find too many supporters.
The Federal Government is asleep at the wheel, just the same as it was with the private training colleges. The only difference this time is that it’s elderly people being ripped off rather than taxpayers.
The senior people in Aveo deserve to be jailed.

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I doubt that. They more correctly appear to purposefully avoid doing anything to impact on the profitability of their supporters, all while wide awake. Simple as that. Follow the money. In spite of significant evidence to the contrary they remain dug in that business can always be trusted to regulate itself, even when it cannot.

The ongoing insulting naivety to our intelligence is priceless. The most dull persons in the country could see the wide open doors for abuse without recompense, but regardless this government soldiers on in faux denial until it is to the wall and might lose a vote.

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WOW. What a great story by Adel Ferguson on 4 Corners re AVEO. I was in a situation with my mother being a resident of Aveo. She bought a unit at AVEO for $135.000, 4 1/2 years later she had to go into a nursing home. She had to pay a maintenance fee of nearly $2000 a month until the unit was sold. Ten months after vacating Aveo made an offer to purchase the unit for $105.000. Which was agreed on. Then the deductions
came in as per agreements that my 92 year mother had signed and not checked.33 1/3% to AVEO plus 3%
management fees, less $2000 a month for 10 months maintenance fees, end result she received $48,000.
Not a bad result for AVEO. We have accepted.this as there is no way around it.But I would like anyone going into these types of places to read every line of every contract and to include your friends and family members to confirm you decision is the right one. It would be nice to know how much AVEO pay Federal and State governments so they can turn a blind eye? so these rip offs can be swept under the table.
Gary

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Here Here @PhilT Spot on analysis of the Govt issue except I don’t think they think business will regulate it self, my instinct and cynical nature says it is because Business is good for their pockets (as you mentioned) and the masses can go to the dogs.

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I agree kortravel99
I also think the Federal government need to be investigated for negligence.
The more we hold those responsible accountable the less likely these corporations can buy their support - I hope!

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The 4-corners program revealed a disgraceful state of affairs and I wonder if the contract conditions were challenged whether a court would enforce them.

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My mother moved into a unit that is managed and owned by Lend Lease. She on the other hand is a very happy lady. She (and I) know very well she has bought a ‘lifestyle’ and not a title and that me and my three siblings would not expect much to come out of the sale of her ‘lifestyle’ when she either passes or needs extra care. When we did get a solicitor initially, he warned her (as he read and handed out the paperwork) and said that “this is the worst financial decision you will ever make in your life”. My mum said… “where do I sign?”.

We are lucky that she does not feel ‘trapped’ as some of the Aveo residents have been suggesting. It does have a lovely sense of a quiet, safe, village feel to it and the unit itself is really nice with surrounding maintainable gardens. She has access to the centre and its facilities, library, pool and luncheon. But she rarely visits other than the centre’s hairdresser.

However I do understand that really, the exit percentage fees coupled with the need to upgrade the unit each time someone moves out is somewhat ridiculous. I cannot imagine the government has the power to invade everybody’s contract and change it, … although I hope so. As this ‘complaint’ will not go away only exacerbate with increasing population of baby boomers coming through. Aveo and the likes should look into other ways they can reap their profits, revise their monthly fees, exit deals and just be a bit kinder to the elderly. This generation (war generation) have had it hard and it can only be good publicity to the companies concerned if they can come up with a better solution.

Cheers

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I hope your mum continues to enjoy this ‘lifestyle’ and when / if she needs to move out for extra care there will be enough funds for that. The profits AVEO and similar are reaping are beyond excessive - it’s tragic that they are gouged from the elderly who may need extra funds for nursing home care. Let’s hope they find a conscience!

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I am a lady on her own in an Aveo Village (for more than 10yrs) if I moved now, I would just be able to afford a caravan with the money I would be left with.
I paid $200,000, the unit is now worth double that, I get back what I paid, less 30%, charges and fees for this and that you would not believe. They are talking about the “Aveo Way” contracts, however these are only for new residents. Us older residents are stuck with our outdated Contracts. When I originally went to see a Solicitor to come here, he took one look at the telephone book sized Contract, and said "Oh you don’t expect me to read all this do you? I have no idea where figures are concerned (my Husband did everything like that) at the time I thought the Solicitor being a Senior himself would know the “ins and outs” of all this, how wrong was I.
By the way I have a two bedroom Unit, my monthly fees are nearly $700 now, ($200 when I moved in)
they cover Rates and Water, however the Management will not pass on the deduction our Council gives for Pensioners (too much trouble) the Residents Committee have tried and tried to get this without any luck) It is so scary to see your money dwindling, and not knowing how long you are going to be alive to need it.

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I forgot a very important part of my above sermon. Aveo get the $200,000 that is the increase in Value of the unit, before all the other things happen.

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Thanks for telling us about your situation Shorthair1. AVEO appears unbelievably dishonest and all the factors you mentioned were the same for my mum - these are the elements to be highlighted in a true AVEO advertisement!
I hope a class action is arranged and the contracts are made ethical. AVEO can afford to at least be reasonable if they had any honour. Good Luck and Good health Shorthair1

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Thank you to 4 Corners … so many other retirement home companies are almost as cruel as Aveo …

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Right after the 4Corners report I received my RACV Royal Auto magazine. It has a nice AVEO advertisement.

I questioned RACV on their acceptance of ads from AVEO. Their response was that the issue had already gone to press and was in distribution prior to the report. They sidestepped revealing their advertiser policies. Best guess is if one has money they have space to run an ad, at least in the first instance. It will be interesting to see if AVEO has future ads published by RACV.

It is worth noting the current government is not even inclined to require financial planners to offer advice in the interests of their clients, so expect little from them, party dependent. Consumers need to complain to those accepting advertising from questionable businesses, and to their MP for abdication of related legislation / consumer protections; for the latter what are the chances unless they truly fear for their seats at the trough.

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We recently retired ourselves out of Ashbrook Retirement Apartments in Adelaide due to noise, complaints not taken seriously, passive smoke from the Apartment above us, flushing toilets echoing into our bedroom from the 4 floors above us etc etc. Our health was deteriorating and we were becoming acutely depressed, so we were prepared to write off almost half of what we paid in order to achieve some peace and some health improvements. This did not leave us with enough to purchase another home, but are lucky to find rooms elsewhere, where it is quiet and restful. Because we managed to leave just before the 3 years were up, the money they could take from us was slightly less than if we had stayed another year. In any case they made $160,000 out of us.
The whole Retirement Villages Act was originally written by lawyers for the owners before consumers could obtain a look see. Although the Act and Regulations have recently been reviewed, there is urgent need for further review under the Australian Consumer Law as it is very one-sided.

Poor Pensioners Adelaide

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Hi Poor Pensioners of Adelaide, I admire your brave move out, I hope you continue to enjoy peace of mind and a tranquil environment. Thanks for sharing your experience.
Here is where you can sign a petition for further action:

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Hi Wend, just like most folk, excluding most corporate or political types, I agree with the thrust of your contempt for ARLO, yet note that it is body representing the retirement village industry. Ben Myers is simply doing his corporate duties, while having no conscience as regards the residents. His stated position would hold up at common law, yet unlikely in Equity. I completely agree that this sector needs a huge shake up, yet note ARLO is not the organisation to do it. The appropriate Government department must act urgently to stop identified unconscionable activity (equity concept) yet is restricted by: 1. multi-jurisdictional barriers, 2. the actual difficulty of the task and the growing numbers of folk affected that discourages any inertia, 3. well targeted political donations, 4. the likely blowout to the Federal Budget if the Dept. of Aged Care (however named and located), 5. the lack of adequate knowledge/ability to run an effective compliance regime that could effectively advocate for retirees. PS. I was working in the Health portfolio when Tony Abbot was Minister for Health and Aged Care, and can attest that the issue was raised often and dismissed as quickly due to its cost and complexity.

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Hi Wend, further to my comments 15 minutes ago. After two spells in hospital. my ex suggested Aveo retirement homes and had received ‘favorable’ reports from a neighbor. The size of the contract, fees of many types, and multitudes of glossy advertising material - all disgusted me.

Caveat Emptor = purchaser beware. As a sort of lawyer, I did and threw it all Aveo material in the rubbish bin. I suggest other prospective residents also take great care and consult a cynical solicitor.

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Signed the GetUp petition

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