Retirement Villages: Beyond The Brochure Analysis
Whichever of the three you choose, it is always important to establish the financial viability of the developer and the company that owns the development. Margaret King in an article in Personal Finance (January 2013) called ‘Retirement Villages: Beyond the Brochure’ stresses the importance of doing a thorough investigation before you purchase. She gives a comprehensive outline of the pitfalls, and the article is worth calling up on the Internet if you have any concerns.
Some things that King says you should check:
The viability of the scheme.
The size of the operator and the length of time they have been operating.
Have your accountant check through the financials and the annual report.
What part of your capital will the scheme retain, and …show more content…
to another city, country, or village—test the waters first. Maybe rent before you commit. For example, it sounds idyllic to move to McGregor in the Overberg, but do you know anyone there? Are you sure you are going to like the people? Can you survive without access to live theatre, city restaurants, your friends, etc.?
Services Offered
This becomes complicated as each village or complex offers different things, and they come in different packages. Thus, it becomes difficult to compare apples with apples.
Meals
Some complexes include all meals in the levy. In others, a percentage of the meals per month are included (e.g. ten lunches and ten dinners). At others, all meals are optional, so you are able to purchase subsidised meals as and when required.
If meals are included, the levies will be loaded accordingly, but you will need to weigh this up against the cost and effort (yes, effort as you get older) of buying and cooking food.
If meals are included, make sure you eat one of their meals before you make your final decision in order to test the quality. Remember, you will be eating this food for many years to come.
Primary Healthcare
Is nursing care offered for residents if they are ill? Do you have to pay separately for the …show more content…
Step-Down Accommodation
Is there opportunity to move to smaller accommodation units with partial care when one gets frailer or if one of the couple dies?
What are the costs involved in moving to a smaller unit? Does it involve selling the one property first (where you forfeit your profit in most of the schemes) then buying the smaller one? If this is the case, it will be extremely expensive to scale down to a smaller unit, and you may become trapped in the larger unit. Find this out before you commit.
There are also various packages offered by different villages with regard to assisted living and nursing care that can be provided instead of moving to a smaller unit. It is important to familiarise yourself with the terminology used by the various complexes you are interested in, and ask exactly what is included or even available.
Transport
There will come a day when you are no longer able to drive. Many of the more beautiful developments are out in the countryside. This means that transport is necessary to get to the nearest shops or mall. Does the development offer transport to take residents
Some things that King says you should check:
The viability of the scheme.
The size of the operator and the length of time they have been operating.
Have your accountant check through the financials and the annual report.
What part of your capital will the scheme retain, and …show more content…
to another city, country, or village—test the waters first. Maybe rent before you commit. For example, it sounds idyllic to move to McGregor in the Overberg, but do you know anyone there? Are you sure you are going to like the people? Can you survive without access to live theatre, city restaurants, your friends, etc.?
Services Offered
This becomes complicated as each village or complex offers different things, and they come in different packages. Thus, it becomes difficult to compare apples with apples.
Meals
Some complexes include all meals in the levy. In others, a percentage of the meals per month are included (e.g. ten lunches and ten dinners). At others, all meals are optional, so you are able to purchase subsidised meals as and when required.
If meals are included, the levies will be loaded accordingly, but you will need to weigh this up against the cost and effort (yes, effort as you get older) of buying and cooking food.
If meals are included, make sure you eat one of their meals before you make your final decision in order to test the quality. Remember, you will be eating this food for many years to come.
Primary Healthcare
Is nursing care offered for residents if they are ill? Do you have to pay separately for the …show more content…
Step-Down Accommodation
Is there opportunity to move to smaller accommodation units with partial care when one gets frailer or if one of the couple dies?
What are the costs involved in moving to a smaller unit? Does it involve selling the one property first (where you forfeit your profit in most of the schemes) then buying the smaller one? If this is the case, it will be extremely expensive to scale down to a smaller unit, and you may become trapped in the larger unit. Find this out before you commit.
There are also various packages offered by different villages with regard to assisted living and nursing care that can be provided instead of moving to a smaller unit. It is important to familiarise yourself with the terminology used by the various complexes you are interested in, and ask exactly what is included or even available.
Transport
There will come a day when you are no longer able to drive. Many of the more beautiful developments are out in the countryside. This means that transport is necessary to get to the nearest shops or mall. Does the development offer transport to take residents