From this month, NSW operators are now required to provide prospective residents with an ‘average resident comparison figure’ in their disclosure statement.
This single monthly figure based on the main charges that you are likely to experience living at that particular village.
It’s one of a range of recent initiatives by state governments to make the contracts and fees around retirement villages more transparent.
As we covered here, NSW Fair Trading has an online calculator you can now use to estimate the main retirement village fees including the ongoing fees.
South Australia has also introduced a raft of changes including a new standard disclosure statement listing all fees and charges; a guaranteed buyback after 18 months for units that have not been re-sold; and an increase in the penalties for issues such as failing to disclose information or breaching contracts increased from $750 to $35,000.
All welcome changes. While there are no requirements yet, you should seek independent legal and financial advice before you sign a contract too – another way to ensure you can retire with peace of mind.