Just released half year figures show a jump of 77 to 402 existing units sales for the six months to December 18 compared to the previous half year (HY18) – an increase of 24%.
New development sales increased 90% from 40 to 76 at an average price of $520,000.
Part of the resulting uplift is credited to the introduction of consumer choice by Lendlease with four retirement village contracts:
- Traditional DMF – “Hold on to your cash now by deferring payment of fees until you leave the village”;
- Prepaid Plan – “Enjoy the certainty of paying the management fee upfront when you enter the village. Retain capital gain”;
- Refundable contribution – “Feel secure knowing your money is guaranteed and don’t pay a management fee – instead pay a higher contribution on entry that is refunded when you leave”; and
- Pay As You Go – “Pay a monthly contribution rather than a lump sum management fee”.
Lendlease Retirement MD Tony Randello says they want to lead in consumer responsive innovation in the village sector, instead of relying on “a business model that is 50 years old”.
“I tell my team it is like the mobile phone – you can buy on a plan or buy outright. We only offered the plan option”.
Learn from Tony Randello and MinterEllison’s Robin Lyons about the pros and cons of new choice in contracts at the LEADERS SUMMIT in three weeks’ time in Sydney. Book HERE.
