You are spot on..you should not touch them with a barge pole because you know nothing of the financial model or of the reasons why mature experienced people buy in. The decision to move into a retirement village isn’t a bloody minded, pragmatic, commercial real estate decision...it is a lifestyle decision to move into a supportive community where safety security and community involvement substantially improve the quality of life. You might also like to know that the DMF model usually means that residents buy their unit at around 80% of the median value on a buy now and pay later basis. Just who do you think pays for all the supportive infrastructure of community centres, pools, spas, bowls rinks, tennis courts and the like?
Your post shows a facile understanding of the model and is dripping with emotion. Ask the ‘chap’ you refer to what he did with the excess money he had after selling his initial home to move to the RV. If he is like many of the hundreds of thousands of Aussies and Kiwis who populate these villages, they neede this extra cash to provide for a getter retirement.
are there cases where the bounds of fairness have been transgressed? No doubt there are...just as there are rogues and spivs in any industry in any country...but to take down the entirety of the industry is to spit in the face of those hundreds of thousands of residents who give the industry a 90%+ satisfaction rating.
Price at posting:
$11.10 Sentiment: Hold Disclosure: Not Held
