the horrid future as we age

As a Baby Boomer planning for my future I have looked at retirement villages, horrified to learn that buying an apartment is such a bad investment - most realestate appreciates and while the apartments in retirement villages appreciate by the time the deferred management fee and other fees associated with selling the apartment which on the whole seem to be about 45% of sale price your capital has substantially reduced meaning the level of accommodation you can buy into has really gone down market - I buy for 300 000 it appreciates to 400 000 deferred management fees are deducted I end up with 220 000 - please somebody tell me this is not right
Then looked into services available if I stay living in my home - unlike USA there are few private companies and those there are are so expensive so the alternative is the not for profit sector being assessed and then trying to manage on the limited few hours a week I am allocated for all my shopping, appointments etc and the services are only available 9-5 Mon-Fri

The future looks bleak no matter how I approach it
Would love to hear a more positive slant

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I stay away from these type of arrangements because like strata titles, one cannot have simple peace where humans are lumped together in close contact, with a few pulling the strings as usual and usually nit picking lefties types who are always out to cause trouble, thereby making themselves feel so superior by, in their mind taking the high moral grounds. Usually they object to dogs and cats and some even go as far as budgies and goldfish. Then you have to watch out for meters on water and power as not all have meters for each unit. But dividing the cost up equally.



As for Retirement Villages I was horrified yesterday reading up on advertisement in Seniors free paper in the chemist that having bought into the village one is given a 'life lease' which I suspect means they get to keep the property on your death or last survivor of marriage and re-sell it on - meaning nothing to leave to anyone. Still pay fees etc I bet on top of these.



It means you have to have an expert guide you into these as they do vary but one must not come out of it worse off if one finds it a restricted life style, as some do, and want to sell up and move back to a different place where one owns outright your own place with only the local council to deal with, and they are bad enough these days when it seems no one can manage to mind their own business any longer but have to be into all of ours and dictate how we should live.



WA had, when I left, started to build small villa's and town houses on Green Titles in place of Strata Titles and these should be spread to all states, means you own your own place on a tiny block but no common ground no body corporate and no one telling you what you can have by way of a pet etc. Also you have control of water, electricity etc without the arrangements some villages and strata titled place have which are not good for those who are in need of control of their outgoings.

I have a friend who is 89 years old and last year he sold his home and he and his wife moved into a village of relocatable homes on the Central Coast of NSW. He was an astute businessman and had good resources, but the sale of his home gave him additional capital. He and his wife enjoy their new community, have little or no maintenance burden and feel safe at night. They have ample funds to cover medical and living expences and when they pass on, their relocatable home will have appreciated in value. Admittedly, they are blessed with relatively good health for their age.

I appreciate that not everyone achieves old age in such monetary comfort and the government needs to supply a "safety net" system for those who cannot support themselves or afford the care they need. We tend to think in terms of our own individual circumstances and I know that there are many out there with real and justified concern for their own care as they age. For future generations however, I think that compulsory super is a good start and much as I hate government regulation, I think that it is inevitable in this area. Super monies (or at least a percentage of it) needs to be untouchable to ensure that the majority can care for themselves toward the end of their lives.

We taxpayers support the government throughout our working lives and while we do have an obligation to look to our own care in old age, the government has an obligation to help those in poor circumstances who cannot care for themselves when they can no longer earn an income.

Government also has the obligation to pay us the income tax levy we all paid and still do today for our pension. Safety net humbug!



Just because the levy was never repealed for same reason it is lost in the mist of political swill or maybe a unilateral agreement that it is lost as which government ever gives back a levy which maybe "accidentally" the Regulation got shifted when Menzies desired the Pensions Fund amounting to around 2.5 billion in today's money in 1950 to use for general purposes. Those who deny it also forget its mirror sister still is collecting via Inland Revenue just as ATO does here.



But then it was only an Official of Treasury who told me and many others via the Editor that this is the case and he should know he worked there at the time.

As a Baby Boomer planning for my future I have looked at retirement villages, horrified to learn that buying an apartment is such a bad investment - most realestate appreciates and while the apartments in retirement villages appreciate by the time the deferred management fee and other fees associated with selling the apartment which on the whole seem to be about 45% of sale price your capital has substantially reduced meaning the level of accommodation you can buy into has really gone down market - I buy for 300 000 it appreciates to 400 000 deferred management fees are deducted I end up with 220 000 - please somebody tell me this is not right

Then looked into services available if I stay living in my home - unlike USA there are few private companies and those there are are so expensive so the alternative is the not for profit sector being assessed and then trying to manage on the limited few hours a week I am allocated for all my shopping, appointments etc and the services are only available 9-5 Mon-Fri



The future looks bleak no matter how I approach it

Would love to hear a more positive slant

It's a really tough area to sort out, indeed. I have a friend who has worked in aged care for many years, so knows a fair bit about most setups. It seems one has to have a devious mind and knowledge of the law to even get halfway to understanding the ins and outs.

Having made enquiries similar to yours, I find at 73, I'm better off staying in my house, big as it is, but I have freedom, and drive, the council home help are very good, and I think, unless they have to wheel me out, I'll stay here.

Interesting reading in some of these posts for people who are aging & thinking of selling their family homes & buying into a retirement village. I do not have the option that many have in this venture. Due to unfortunate circumstances years ago I now live in a rented home throught the State. I worry about the horried future as I age & wonder what road I will have to follow. I am happy where I am & the thought of going into one of those nursing homes terrifies me.

Any one else in here have this worry[size=4][/size][color=blue][/color]

I think most of us feel like you do Cherry May - scary thought.

But the thing is "it is what it is" for many who are just not able

to keep a home going and require care difficult as it must be.

..

We all want to be able to care for ourselves and live an independent life.

All the best

Phyl.

Cherry May, You are not alone in you very real fears. Even though I do own my own home ,I live alone and worry about the future as I do not want to go into a nursing home when I can no longer manage alone,I am also horrified at the idea of living with family as I would feel such a burden ..I think depending where you live that you can arrange to have a carer call daily and meals on wheels as you age ,hopefully this will see you ok. I do hope so. All the best Wobbly.

It would take 100s of pages on here to go into all the traps involved in

buying into retirement villages. Suffice to say that after over 40 years in

the real estate industry, I would not touch one of these with a barge pole.

The only thing that would make me have another look, would be the

development of small Green Title blocks as BigVal mentioned in WA.

If anybody has a contact at a high level with one of the Churches, just

try to find out the level of financial return that most of them get from these

investments.

It would take 100s of pages on here to go into all the traps involved in

buying into retirement villages. Suffice to say that after over 40 years in

the real estate industry, I would not touch one of these with a barge pole.

The only thing that would make me have another look, would be the

development of small Green Title blocks as BigVal mentioned in WA.

If anybody has a contact at a high level with one of the Churches, just

try to find out the level of financial return that most of them get from these

investments.

Good post Innes.

Cherry May, retirement villages and nursing homes are two different things, anyway. If you are in reasonable health, and happy where you are, that's great.

Sure, we have to plan for eventualities, but again if there's no urgency right now, take your time.

Cherry May, please talk to as many people as you can. If you belong to any clubs, talk amongst the members. If you don't, think about joining. Then there are neighbourhood houses, which are a great source of experience and advice. Also, by talking it will ease the fear and worry.

As has been said, retirement villages are not always what they're cracked up to be. They are an industry now, and run as businesses.

Centrelink also has some great advisory sections.

On this website's home page, there are listings of resources also. [url=http://www.yourlifechoices.com.au/index.php/articles/category/resources/]Click here[/url].

Finally, I'm glad you ventured on to the forum to talk about it, and please feel you can always do so. There's a lot of good people who read these pages.

Seggie. If money is no problem, a retirement village would be wonderful. Another worry if you only have a very moderate bank account, one's health may deteriorate and you may need to go into a nursing home. From what I gather, you always lose money if you have to move and you also need big money if you go into a good nursing home. Retirement villages and nursing homes. Big businesses, especially retirement villages. Why do you think there are so many? It's the place to invest in but I don't think they'd want my bank account. Try to stay in your own home and get council help if you can and need it. Put your name down as soon as possible and be assessed. And try not to look too glamourous. That's a joke, folks. The mirror and I are not good friends but hey, who cares. We still have each other here.

Thankyou all for your kind & informative replys to my post.

I have kept notes for my future referance.



Best Regards.

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