The Council On The Ageing ("COTA")
published the following review in the February 2002 edition of
reportAge. A similar review was also published in the March 2002
edition of the Australasian Journal on Ageing.
Retirement Village Advice
There is a gap in the provision of accessible information
for consumers about the complex topic of resident funded retirement
villages. The Retirement Village Handbook: A Consumer Guide To
Resident Funded Retirement Villages In Australia makes a good attempt
to fill it. It is divided into 3 distinct parts - a detailed
overview of what retirement villages are about; checklists of questions;
and summaries of retirement village legislation in NSW, Queensland and
Victoria as they apply to new residents. Purchasers from other
States and Territories are promised a "complimentary summary of the
legislation in their State or Territory as soon as it becomes available".
However, as legislation exists in most this needs to be immediately, and
in the case of Victoria where the Retirement Villages Act is under review,
as soon as available. The author, Randall Olgers, is a lawyer and
ex-banker. He sensibly stresses that legal and financial advice
should still be sought and makes no secret that complicated features are
involved. A strength of the handbook is the information provided on
financial matters, including the GST and service charges, different
departure fee structures with examples, and potential traps for the
unwary. There is a methodology for assessing opportunities,
comparing alternatives and evaluating investment potential. This is
further extended on the website
www.itsyourlife.com.au which offers a Departure Fee Analysis service
for $30. Prospective residents can submit the entry price and
particulars of the departure fees, and receive in return tables and graphs
of financial information and analysis, such as how much the departure fee
would be in a range of scenarios involving different periods of occupancy
and different growth rates in the market price of the unit. A
problem for users is however that the information needed to make the
calculations, such as a contract, can be difficult to obtain from villages
until they have an entry commitment from the prospective resident.
Hopefully a handbook such as this encourages informed consumers to make
greater disclosure demands of retirement villages. Available from
It's Your Life Retirement Village Information, tel. O2 8230 2424, or a
form on the website, for $75.00, $49.95 for Seniors Card holders.
