Retirement Village legislation , is topical. I reside in a large brand Retirement Village, and here is my current thinking.
RETIREMENT VILLAGE EXPERIENCE.
Three and a half years ago (February 2018) I purchased a License to Occupy agreement at Oakwoods Retirement Village (Arvida Group ), 357 Lower Queen Street, Richmond. I came all the way from Auckland, as my only daughter/husband and their son had relocated from Auckland to Nelson. We knew it was not possible to do useful grandparenting from afar. Previously I had lived all over New Zealand, but primarily Wellington and Wanganui during my work career.
I was careful about doing due diligence. I wanted a village run by a large operator, a 2-bedroom independent Villa, or a 1st floor 2-bedroom apartment. Privacy was important, and if possible, a full suite of care services available if our health declined. No apartment facility unit was available in Nelson at that time.
Location was important and Oakwoods provided a great location, with an adjacent full medical Centre and a café, and all within walking distance to Richmond Mall, and other large town services. Oakwoods Village has 116 independent Villa’s, 43 Serviced apartments, and a 48-swing bed Hospital and Rest home facility. It was also well-established. The Villa I purchased was one of 24 new builds, and I knew in the future that further new builds and design plans were in the pipeline.
ENTRY COSTS
I paid $555,000 in February 2018 for my new Villa (117 sqm). It contains 2 bedrooms, 2 bathrooms, has a garage with an interior access, and a life time fixed monthly fee of $608 ($7300 per annum) for village services , covering a wide range of costs.
The Villa license was cheaper than if I had purchased a free hold equivalent new town house, but with no capital gain. Most articles on Retirement Villages, do not comment on the lower entry price issue.
I fully understood the Deferred Management Fee (30% applied to bringing the unit back to as new, and use of village amenities, $388,500 returned) applying to the Villa. However, I was frustrated at not being able to negotiate over this. That said, it was not of sufficient concern for me to walk away from our decision to purchase.
The fixed weekly fee( rates, insurance, staff salaries etc ) gave me a feeling of security, no increase over our lifetime, and I looked forward to having the gardens cared for, rates and water paid etc., and with full access to the Village Centre services, e.g., daily newspapers, events & activities, and free morning tea. At my own cost, we added a Archgola Awning to our Villa.
PERCEPTIONS
Overall, it’s been a positive experience.
Most people come into a retirement village too late age wise. Coming in unhealthy, limits their experience and options. I recommend coming into a retirement village with its many recreational and support facilities at an age of about 70 rather than 80+ years of age.
Some of the Village occupants are very visible, particularly those who utilise the Village Centre facilities. Others you rarely see. Such decision is the delight of choice. You can be involved in the village life to whatever degree you want.
Oakwoods is a well-run Village. The Manager and staff in general terms are available and caring. I have an unease at the age and health of some new residents purchasing independent Villa’s when it is obvious, they require serviced apartments. Similarly, pressures applied either by Family or management to go into care, but conversely residents and their families being resistant to a different level of care. These are all sensitive , personal and pastoral decisions. Under any village rules or legislative model there are no easy answers. It all requires good management, and sound individual/family responsibility, suffice to say uncertainty and poor decision making occurs as often as quality decision making.
A regular village newsletter is compiled in large font size by management, a pre-requisite for village communication and overall communication is sound. There is always debate about Village issues, e.g., is the paving and signage up to date? Is the Gym equipment working? Can morning tea have more variety? Unlike some Villages, Oakwoods has an active Residents committee, operating since 1999. It pays specific attention to detailed minutes, and is an important part of the village voice. There also exists an active social committee. Both functions in my view are different and should not be mixed up or combined.
My wife mainly stays around the Villa; the community component of the village is not for her. For me it’s the opposite. I like the events, options, cup of coffee and chatting with others, gym use etc. You can do as little as you like, or as much as you like. Choice and Options, Great!
We have always been intrepid travellers, so locking up and leaving the Village while we tour around suits us fine. Yet for many, the Village is their lifestyle, the close facilities of Richmond Town Centre their major off-site facility. Bowls and Billiards, cards and crafts are common recreational activities enjoyed by many. Also, the 2 Village vans do their regular excursions and shopping trips are great benefits. Sky TV is available in all the Village common area lounges.
DOWNSIDES
There are not many. My own due diligence was not as comprehensive as I had planned. The rural view from the back yard of my Villa, was soon completely blocked by a large residential home development.
The narrow street outside our front door is more a lane than a street, and almost certainly this was a design error. I should have picked this up myself that the street was too narrow, bringing neighbours’ residences too close and severely restricting vehicle access.
We are not gardeners and there is more garden surrounding the Villa than I had anticipated. The Village gardeners do a great job, love their weekly lawnmowing, but there is an expectation that village residents will assist in maintaining their nearby gardens, not just leaving it all to the Village staff. In future I would buy an apartment if available, but that’s because some height with a view and no garden is important to us. For others the opposite situation can apply.
I find the costs and rules applying to transfers within the village, are not clearly explained, or understood. Recently, while chatting with residents about their knowledge of the costs and rules applying to Retirement Village life including transfers, it was obvious key information was either unknown or confusing for many.
The recent national initiatives re Summary of Key Terms & Transfer to Care checklist have been an excellent start, but many village occupiers are still unaware of them, or have not sighted a completed check list applicable to them.
*Project Suggestion: To increase awareness, all Village Residents should receive an easy-to-read summary of key terms and Transfer to Care checklists applying to their situation. This work is something each Village operator could provide to their residents as a project, to increase current occupier’s awareness and to comply with best practice village management requirements .
Obviously, the skills and quality of the Village Manager and associated key staff are important. Formal village management skills and qualifications for key senior positions will always require attention. Included should be salary levels for Village staff – be it care or gardening staff. Minimum staffing levels in Care facilities, very relevant issue. Such matters must not be forgotten in the Retirement Village evolution.
Alec Waugh: Villa 98, Oakwoods Retirement Village Editor: Kaspanz