Now called the Six Month Rule by the Property Council, from July 1 2014 village operators face the challenge of residents moving into high care facilities potentially requiring a bond (now known as a RAD - or a Daily Accommodation Payment). It will have to be paid within six months of entry to the care facility. This presents a major financial challenge to operators give the village unit has not sold and settled. (The standard transaction cycle for a fast sale on settlement is four months).
On behalf of member village operators, the Property Council has commissioned consultants Grant Thornton consultants to assess the short and long term financial implications of this change and possible alternatives. For more information members should contact Daniella Stutt, Policy Advisor on 03 9650 8300 or dstutt@propertyoz.com.au.
Legal Issues
VCAT rules Lifestyle Communities’ DMF model illegal
Lifestyle Communities’ business model is under serious threat after a ruling by VCAT President Justice Ted Woodward found its exit fee structure to be illegal. The ASX-listed land lease operator, which was valued at $861.9 million and placed in...
