Reality Bites
Money Magazine Australia|November 2017

George, 85, had lived comfortably in a retirement village in Melbourne’s south-eastern suburbs for nine years – in a unit that cost $595,000 – but when the time came for him to move into aged care he and his three children received two sizeable shocks.

- Rodney Horin & John Rawling
Reality Bites

The retirement village operator took two years to sell his unit, which meant his family was unable to pay the $1 million refundable accommodation deposit (RAD, formerly known as the bond) that was required by the aged-care facility. George was able to move in but his family had to pay an annual fee, known as the daily accommodation payment (DAP), which amounted to 5.73% of the outstanding amount of the RAD. (The DAP is paid on a regular basis, up to a month in advance, and is similar to paying rent. This fee is set by the federal government. If a person has no asset base, the DAP equates to about 80% of the pension.)

This dramatically stretched the family’s cash flow. His family’s efforts to speed up the selling of George’s unit in the retirement village by engaging a real estate agent were firmly rejected by the retirement village management, which pointed to a clause in the contract – signed 10 years earlier – that only management could sell the unit.

There were also clauses that prevented the family bringing in their own painters and providing replacement whitegoods.

When the unit finally sold, George’s family received their second shock. Subtracted from the unit’s $1.02 million sale price was a deferred management fee (32.5% of the sale price) of $331,500, a long-term maintenance fund fee (4%) of $40,800, reinstatement costs (new kitchen, painting the unit, etc) of $70,440, a releasing assistance fee (2.5%) of $25,500 and legal costs of $970.

George’s $1.02 million had rapidly become $550,800. In nine years, George’s family had lost more than $400,000, despite the fact the unit had nearly doubled in value.

この蚘事は Money Magazine Australia の November 2017 版に掲茉されおいたす。

7 日間の Magzter GOLD 無料トラむアルを開始しお、䜕千もの厳遞されたプレミアム ストヌリヌ、9,000 以䞊の雑誌や新聞にアクセスしおください。

この蚘事は Money Magazine Australia の November 2017 版に掲茉されおいたす。

7 日間の Magzter GOLD 無料トラむアルを開始しお、䜕千もの厳遞されたプレミアム ストヌリヌ、9,000 以䞊の雑誌や新聞にアクセスしおください。

MONEY MAGAZINE AUSTRALIAのその他の蚘事すべお衚瀺
An outrageous, beautiful monopoly
Money Magazine Australia

An outrageous, beautiful monopoly

Telstra's mobile business is a cash machine with few competitors, giving it the highest returns in the world.

time-read
4 分  |
July 2024
Drop the anchor to judge value
Money Magazine Australia

Drop the anchor to judge value

Buying and selling decisions should be based on where a stock price is going, not where it has been.

time-read
3 分  |
July 2024
Powering the AI boom
Money Magazine Australia

Powering the AI boom

Beyond the software and chipmakers, where will the energy come from?

time-read
3 分  |
July 2024
Get into life
Money Magazine Australia

Get into life

Tucked inside super are products that can protect you from life's inevitable uncertainties.

time-read
5 分  |
July 2024
Paths to home ownership
Money Magazine Australia

Paths to home ownership

Taking the road less travelled can sometimes deliver unexpected benefits.

time-read
5 分  |
July 2024
Sold! Quick ways to add value
Money Magazine Australia

Sold! Quick ways to add value

Small, strategic changes can have a big impact on the look and feel of your home. And get you a better price on auction day.

time-read
5 分  |
July 2024
Money lessons the kids need to know
Money Magazine Australia

Money lessons the kids need to know

Your children can learn a lot from your past money mishaps. Here are eight financial conversations I have had with mine.

time-read
4 分  |
July 2024
Property-investing rules: are they likely to change?
Money Magazine Australia

Property-investing rules: are they likely to change?

The pressure for the government to curb the tax benefits of tax concessions, such as negative gearing and the capital gains tax discount, is unrelenting. Most recently, independent senators David Pocock and Jacqui Lambie proposed five options for paring back investment property tax concessions, with savings to the Federal budget of up to $60 billion over the next decade.

time-read
3 分  |
July 2024
What's love got to do with it?
Money Magazine Australia

What's love got to do with it?

A rollercoaster of emotions could be driving poor crypto behaviour.

time-read
3 分  |
July 2024
Are we ready to be cash-free?
Money Magazine Australia

Are we ready to be cash-free?

Saying goodbye to our piggy banks too soon could leave small businesses in the dark when problems arise.

time-read
2 分  |
July 2024