This past Monday, Melbournes The Age newspaper ran a page one article of 1,000
words that raised a number of unflattering points on the village industry for the papers
752,000 readers. Amongst the observations were references to the suspicious deferred
fee model and a system that often leaves residents feeling ripped off. It also raised
the weekly fees as a low bait fee for services when a resident enters, which soars after
the first few years. It suggested intentional slow sales of vacant ILUs: In the six months
after our mother died, not one person was shown through the apartment
we continued
to pay monthly fees of over $400
causing us a lot of distress in our state of mourning
and grief.
The article also explained that fees can be anywhere between 2.5 to 10 percent of the
purchase price of a retirement unit for each year spent in the village and that smaller
operators dont have a lot of transparency in relation to what they do. Values came
under the microscope as well: This slowing demand has led to speculation that Australia
will have too many retirement units in the next few years, reducing profits and forcing
values down.
Exclusive: Aveo to sell off its retirement villages in South Australia and Tasmania
Tony Randello, CEO of the nation’s leading retirement village provider, said the impending sale of its 16 retirement villages in South Australia and Tasmania “aligns with Aveo’s regular strategic review of opportunities across its portfolio”. The...