Aveo targeted by Fairfax/Four Corners but truth and the village residents the real victims
“Monday’s media onslaught of retirement village operators, titled ‘Bleed them dry until they die’, fronted by Adele Ferguson, is a travesty of the truth. It says village residents are financial ‘prisoners’. If so, why would 91% of them make the same decision to join their village again” asks retirement village expert Chris Baynes.
“Our 2013 McCrindle Baynes Village Census, conducted independently by McCrindle Research, surveyed 4,933 residents across 236 villages and asked Would you make the same decision to move into this village again?, 96% said ‘Yes’, they would move into a village again”. says Chris.
The Four Corners program said village residents are made ‘financial prisoners’ because they will ‘lose money’ when they leave the village, when forced to pay an ‘exit fee’. This is wrong.
Residents sign a contract when they enter the village that explains they make an upfront deposit and when they leave they get that money back less an agreed amount that is deducted as the cost of their accommodation while in the village. The exit fee is in effect rent. This is the only income the village operator earns.“If they did not charge this money the resident would have lived in say a two bedroom house for free for say 10 years. This was not explained in the program or articles”.
“If they did not charge this money the resident would have lived in say a two bedroom house for free for say 10 years. This was not explained in the program or articles”.The Fairfax / Four Corners reports claims industry operators use a high-turnover “churn” strategy to move residents out of villages to make higher profits. This was described as a ‘money grab’.
The Fairfax / Four Corners reports claims industry operators use a high-turnover “churn” strategy to move residents out of villages to make higher profits. This was described as a ‘money grab’. Aveo Group was portrayed as the main perpetrator with the provider’s forecasts for average occupancy of 10 to 12 years
Aveo Group was portrayed as the main perpetrator with the provider’s forecasts for average occupancy of 10 to 12 years labelled as ‘high’ (churn rate) by industry standards.“The real facts are that average occupancy is 10 years for private operated villages and 8 to 9 years for Not For Profit villages – because historically they have attracted a slightly older
“The real facts are that average occupancy is 10 years for private operated villages and 8 to 9 years for Not For Profit villages – because historically they have attracted a slightly older resident” says Chris Baynes. “This has been stable for the last 20 years”.The reports also included statements that Aveo Group’s average exit fee of $75,000 was an example of their “greed”, making the company $90 million in exit fees in 2016.
The reports also included statements that Aveo Group’s average exit fee of $75,000 was an example of their “greed”, making the company $90 million in exit fees in 2016.“The reports did not say that the $75,000 exit fee is an average of $144 per week rental for 10 years for a 2 bedroom plus garage villa. Not bad value” says Chris Baynes.
“The reports did not say that the $75,000 exit fee is an average of $144 per week rental for 10 years for a 2 bedroom plus garage villa. Not bad value” says Chris Baynes.Now residents and their families have had fear and uncertainty unnecessarily stoked by this ill-informed and inflammatory reporting.
Now residents and their families have had fear and uncertainty unnecessarily stoked by this ill-informed and inflammatory reporting.“We are receiving reports of residents and their families urgently asking for copies of their village contracts and seeking proof that they are not being ripped off”.
“We are receiving reports of residents and their families urgently asking for copies of their village contracts and seeking proof that they are not being ripped off”.While publicly listed Aveo was the focus of the reports, Fairfax / Four Corners captured all village operators, including the 400 Not For Profit operators like the Catholics, Baptists and Salvation Army, in the same category, as well as large and small private operators like Lendlease and Australian Unity.
While publicly listed Aveo was the focus of the reports, Fairfax / Four Corners captured all village operators, including the 400 Not For Profit operators like the Catholics, Baptists and Salvation Army, in the same category, as well as large and small private operators like Lendlease and Australian Unity.There are 2,000 retirement villages across Australia housing 180,000 residents, with an average age of 81. 70% are single females.
There are 2,000 retirement villages across Australia housing 180,000 residents, with an average age of 81. 70% are single females.“Retirement Village residents and their families were overwhelmingly content before the Fairfax/Four Corners reports. Now they are unnecessarily fearful and uncertain because of this ill-informed reporting. This is unacceptable” says Chris Baynes
Chris Baynes is the Founder of DoComeMonday Media, a specialist in the retirement and aged care sector. Over 10 years he has visited over 250 retirement villages, interviewing residents and their families.
He also supported his family member’s move into a village.
chrisb@docomemonday.com.au
