The operator has released two new contract options across its 64 villages as it looks to counter negative consumer sentiment following last year’s Fairfax/Four Corners retirement village investigation.
The new contracts are:
- Peace of Mind – DMF is 5% per annum based on the initial price paid for the home and maxes out after five years. No share in any capital gain or loss, but Stockland covers all renovation costs, allowing the resident to simply hand in the keys and walk away, with no marketing fees. Residents will also be repaid after a maximum of six months from departure even if their home hasn’t yet been sold.
- Capital Share – Offers a 50% share in the capital gain of the property. DMF maxes out at seven years or 35%. Stockland hasn’t specified but it is assumed the resident covers refurbishment and marketing costs.
Stockland also provides a change of mind guarantee which refunds all payments within six months of moving into a village.
The options are in addition to its new ‘Aspire’ model launched earlier this year, which offers over-55s living with no DMF.
Stockland Retirement Living CEO Stephen Bull says research tells them residents are looking for simple contracts with affordable retirement options.
“We understand every resident looking to move into a Stockland Retirement Village is in a different financial position and has different financial preferences, these new contracts now give the choice back to the customer with the option to share in the capital gain of the property or to have complete certainty over their costs.”