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.
Aspen’s bid to buy the 52 rental retirement village operator Eureka is dead... for now
David Dixon and John Carter (pictured below) look to be stymied in their current bid to buy the country’s only pure play owner/operator of over-55s rental communities and create a $500 million affordable housing company. Aspen Group’s CEOs have...