A NEW 'no hassle' financial contract designed to remove uncertainty for prospective retirement village residents has been introduced by RetireAustralia.
The retirement village operator, which currently manages over 28 villages with over 5100 villas and apartments across New South Wales, Queensland and South Australia, has launched the new contract to remove uncertainty for prospective residents and their families.
RetireAustralia chief executive Alison Quinn said the average age of residents moving into the company's villages is around 78, and that most residents "at this stage of life prioritise financial security and confidence".
"Our new contract addresses common areas of concern in retirement village contracts across the industry and ensures that residents and their family members know exactly how much they are required to pay and how much they will receive after they leave," she said.
She said the contract was about "eliminating uncertainty and hassle".
At a glance, the new contract includes fixed monthly fees for life, a three-year exit fee capped at 35 per cent of the purchase price and no refurbishment, sales commission or marketing fees.
There are also capped fees while your house is on the market, guaranteed buyback with 12 months (six months in NSW) and no capital loss or gain.
The contract has been piloted in five villages across Queensland, NSW and SA and has been welcomed by the Association of Residents of Queensland Retirement Villages.
The company said the new model could benefit the wider retirement and aged care industry and have a "fundamental impact on future legislative reviews".
The contract was introduced across the company's five leasehold villages in Queensland on March 31, and is set to be available on all RetireAustralia villages across NSW and SA from June and September respectively.
