PROBUS CLUB 17 November

Key Findings Taken from the PwC/Property Council Census 2016 Average age of residents is 80 Average age of moving into a Village is 75 65% are female 40% of independent units are occupied by couples 200,000 Australians live in retirement villages Spread of ages of residents consistent with current demographics.

What are the ‘trigger points’ to thinking about moving? Change in circumstances – move closer to family Current house is too big – too many steps Lack of transport in your area Need more support – don’t know the neighbours, so I can not ask for help Difficult to access services Social isolation and the kids are concerned

Most Common Village Attributes Community centre with adequate communal spaces 92% Emergency call system 91% Organised outings or activities 86% Library 82% Visiting health professionals 78% Increase in pet friendly Villages

Facility Considerations INDIVIDUAL Will the internet work? What about my pet? Can my grandchildren use the pool and stay overnight? What is included in my monthly charges? What other services can I access?

Organisational Considerations Is the Village operator managed? What are the financial commitments:- Before entry purchase price? Ongoing recurrent fees/charges? When I leave i.e DFM or exit fees

Design & Affordability Less than 16% of all Villages have three bedroom units. Many variations of commercial structure Some are lease licence, strata titled, assignable long term lease some are rental. Some have DFM – deferred management fees, which may attract a reduction in net proceeds at time of sale.

What are the Benefits? Opportunity to participate and socialise Sense of community Easy access to services – additional care, meals, nursing assistance May assist in releasing assets by selling home

Any Pitfalls? Do your homework See other Villages Assess the culture of the Village Pop in unannounced Understand the contract Understand the deferred management fee Understand communal living

What About The Future Newer villages are constructed with bells and whistles, which all come at a cost. Trend is for an ever increasing range of services. Trend is to cater to a more discerning clientele Cautionary note is the balloon fee structure where the DFM, commences at 7% for year 1.

Likely Future Demand Past decade has seen tremendous growth in this sector with many changes in design and services Ageing population leads to increased demand The economics of a move to a village is sound.