Big plans for seniors: $190 million living plan on the way?

Benny's Light · Tuesday at 8:57 AM

Sounds pretty good but how does it completely work - Strata fees? If there are no exit fees and less complications, how does it work. To pay for the facilities and the ongoing upkeep, money has to come from somewhere? Worth looking into but with caution.

TrishH · Tuesday at 9:25 AM

Benny's Light said:
Sounds pretty good but how does it completely work - Strata fees? If there are no exit fees and less complications, how does it work. To pay for the facilities and the ongoing upkeep, money has to come from somewhere? Worth looking into but with caution.

As with other similar communities there would be a monthly fee that contributes to o going maintenance & upkeep.

mylittletibbies · Tuesday at 9:33 AM

In other words, for the wealthy.
What are the ongoing fees. No way so much supposed "luxury" would fit in a pensioners budget.

5% will be available as "affordable housing". Affordable for who??

Sounds great for those of us who can afford it but doesn't do a thing for the homeless.

A good news story would be the govt building more affordable homes for the poor people who are being forced to live on the street. Many through no fault of their own, many with good rental history but no chance of getting a property because there aren't enough available.

I heard on the news thst the govt has announced multi millions for new houses to be built. That's great but where are the trades coming from. The house behind mine has been being built for the last 5 years and it's still not finished.

Aralia · Tuesday at 10:01 AM

Catherines · Tuesday at 11:27 AM

TrishH said:
As with other similar communities there would be a monthly fee that contributes to o going maintenance & upkeep.

Yep. That would be fees like ‘body corporate’ fees in units. Nothing comes for nothing.

Tuppence37 · Tuesday at 3:04 PM

I live in one of those units/duplex we bought in at about $500,000. It costs in excess of $600 per month for just living here. We don't get much more than that. Granted they were new when we bought about 7 yars ago
if not for our children helping we could not afford it. Our house was small so did not attract a great deal. Pensioners don't do it.

Catherines · Tuesday at 7:13 PM

Think twice, maybe even three times!!! There are a lot of catches in buying into so-called ‘retirement villages’ and retirement/seniors apartments. You need a darned good financial advisor just to read and understand the written jargon (and it will cost you a bit also for the advice). Exit fees from one of these places can often be on a percentage basis according to how many years you have been there or the number of years from buying to dying. I know of one place that charges (on a sliding scale) upto 34% of your in-going ‘purchase’ price upto 7years after you go in. And you also have to pay for usage of your own utilities and a monthly fee for maintenance of grounds etc. as well as at the end, or upon your demise, the place you ‘bought’ has to be brought up to the original condition, and they will also ‘sell’ your place - your family cannot sell it. So there goes more ‘commission’ out of your vastly already reduced in-going purchase price.

Stay in your own home if you can financially, for as long as you can, because there is very little out there that will not cost you money in the long run. You still have your own bills to pay for amenities, services etc as you have in your own home, then you have fees similar to body corporate fees. On top of all that there is the trauma of sorting and shifting to a new place with everything you want to keep that will fit in the new place and that shift will also cost you a bit if done professionally. One very cautious option is thinking about having a friend - a very trusted friend - move in with you and share all expenses for amenities and usage and perhaps also pay you nominal rent; with the latter you will need to consider any impact the rent figure will have on your pension, if you get a pension.

So - if you have family that you wish to leave something to - what you thought your family would get from the sale of your original home has now been reduced to very little left for them if you buy into a place like the one I have commented on. I acknowledge sometimes you might not have a home or any property worth leaving or wanting to leave to family, but think very hard.

novezar · Tuesday at 7:14 PM

Benny's Light said:
Sounds pretty good but how does it completely work - Strata fees? If there are no exit fees and less complications, how does it work. To pay for the facilities and the ongoing upkeep, money has to come from somewhere? Worth looking into but with caution.

Hi, Benny's Light,

I reckon the strata's to do with the 14 story unit tower on itself won't be "Cheap" at all. Let alone all of the other upkeep costs. The mind ponders, $$$$$$$$$+/1/4.

That's not taking into account the purchase price, quoted from $680k's - $1.7M.

The proprietors aren't aiming for the 'Average Joe-Blow" to purchase anything.

I think that I'll put an application in for the "Penty". Ha,ha.
No doubt, it will be sold.

Benny's Light · Wednesday at 8:46 AM

novezar said:
Hi, Benny's Light,

I reckon the strata's to do with the 14 story unit tower on itself won't be "Cheap" at all. Let alone all of the other upkeep costs. The mind ponders, $$$$$$$$$+/1/4.

That's not taking into account the purchase price, quoted from $680k's - $1.7M.

The proprietors aren't aiming for the 'Average Joe-Blow" to purchase anything.

I think that I'll put an application in for the "Penty". Ha,ha.
No doubt, it will be sold.

Thank you Novezar.

These places and alike look great on paper but there are so many hidden costs. I worry that if we have to go into care there will be insufficient funds to provide for this if we move into one of these establishments and then have to sell for the nursing home. I think we are better off to stay where we are. As we are self-funded pension retirees and comfortable, the costs of everything is getting ridiculous. To have care at home which we will need to pay for full price for all services, will become unfordable after we pay the bills and have food on the table. The systems are becoming quite difficult now for seniors to navigate and be able to live a modest life and enjoy retirement.

Catherines · Wednesday at 9:28 AM

For anyone that does not know from friends/family yet; if you have to go into permanent ‘nursing home’ type care - my mother had Alzheimer’s dementia and had to be admitted and it was a (refundable) deposit of $350,000 in 2016. Just had a friend put her husband into the same place @ $700,000 deposit. On top of that you are assessed by the government on your assets (excluding your own home value), pension may then be cut leaving you with little.

Sometimes, if the ‘patient’ needs to be cared for in one of these places, you only have about 6 weeks to research and have the ‘patient’ admitted. If you cannot find a place to your liking near you, and the ‘patient’ is in a hospital at the time, the government will then take over and your loved one may be given a place ANYWHERE in the state (I’m talking Queensland at the moment). It is not cheap.

With deposit prices going up rapidly the amount required will come very, very close to (if not over) the sale value of your home leaving little. In some circumstances, depending on the person’s medical needs and mental state it could just be better to have home care through government subsidies but I don’t know those details.

Just my two cents worth.

mylittletibbies · Wednesday at 9:37 AM

it's getting to the situation where it seems it's better to be broke with all these places waiting to get their hands on any assets you may have.

How long will it be before t h e government wants to bring Death taxes back, like the UK.

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