The story not told by Four Corners
Aveo is proud of the service our 2,000 staff provide every day to over 13,000 residents at 89 retirement communities across Australia. Of course, we can always improve, continue to make contracts clearer, and better customise our services and interactions with residents. Mostly, we are getting it right every day. Here are some key facts about us and retirement villages that you didn’t see in the biased and sensationalist Four Corners program.
- In an independent industry survey, residents indicated that if they had their time over to make the same choice to move into a retirement village, 98 per cent of residents said they would make the same move again.
- There is no such thing as a ‘churn target’, only that units which become vacant should be sold as soon as possible. Experience has demonstrated that between 10-12 per cent of residents will leave a community each year to go to higher care based on advice from independent health assessments or pass away.
- The deferred management fee (DMF) model is used by almost all retirement village operators including Australia’s largest operators in the sector. It enables residents – of which the vast majority access an age pension – to effectively part-pay for their villa or apartment at the end of their tenure when their place is resold. This means a lower entry price that makes village living more accessible and affordable.
- Regulations ensure that each prospective resident is given a fact sheet and/or disclosure statement, to help them compare villages, inspect documents such as the village accounts, and understand the costs of moving in and out. A 120 day settling in period ensures residents who sign the contract can change their mind, even after moving in. We encourage all buyers to get independent legal and financial advice.
- Our new Aveo Way contract delivers benefits to residents not generally available from other operators:
- a 120 day settling in period;
- a guaranteed buyback after 12 months (6 months in NSW and TAS) for the price paid for the unit;
- no exposure to the property market (i.e. no market loss or gain);
- no charge to the resident on exit for reinstatement or refurbishment costs and no marketing/commissions payable to Aveo for the sale if Aveo is the appointed sales agent. As usual, a resident can always appoint an external agent of their choosing; and
- a discount provided to switch accommodation types if a resident’s care needs escalate.
- None of the Four Corners issues related to the Aveo Way contract.
- All general service charges and administration fees charged to residents are calculated on a cost recovery model, that is, Aveo does not profit on these fees.
- Aveo delivers over 300,000 hours of care to senior Australians in our assisted living apartments annually. Care fees charged to residents under the Freedom Aged Care model in these apartments are calculated on a cost recovery model, that is, Aveo does not profit in any way on these fees.
Download a copy of this ASX / Media Release.