1 00:00:00,160 --> 00:00:02,400 Speaker 1: Now government's doing a little bit of a shakeup of 2 00:00:02,440 --> 00:00:05,920 Speaker 1: the rules for retirement villages. The changes include that village 3 00:00:05,960 --> 00:00:08,920 Speaker 1: operators will have to repay residents within a year of 4 00:00:08,960 --> 00:00:11,040 Speaker 1: their unit being vacated. Up to now, there was no 5 00:00:11,119 --> 00:00:14,400 Speaker 1: deadline at all. Around sixty three thousand New Zealanders currently 6 00:00:14,400 --> 00:00:17,919 Speaker 1: live in retirement villages, and Council spokesperson Carol Shepherd is 7 00:00:17,920 --> 00:00:18,159 Speaker 1: with us. 8 00:00:18,200 --> 00:00:20,959 Speaker 2: Hi Carol, Hello, Heather, how are you going. 9 00:00:21,040 --> 00:00:22,520 Speaker 1: I'm very well, Thank you, I should say you're from 10 00:00:22,560 --> 00:00:26,040 Speaker 1: the Retirement Village's Residence Council. Now the twelve month deadline 11 00:00:26,040 --> 00:00:27,680 Speaker 1: for getting your money back to you? Do you like that? 12 00:00:29,160 --> 00:00:31,720 Speaker 2: Well, let's say that everybody wants their money back as 13 00:00:31,720 --> 00:00:35,040 Speaker 2: soon as absolutely possible, but to be realistic and pragmatic, 14 00:00:36,320 --> 00:00:39,839 Speaker 2: we wanted some definition, some definite time frame about when 15 00:00:39,880 --> 00:00:42,560 Speaker 2: we could get our money back, and twelve months seems 16 00:00:42,600 --> 00:00:46,599 Speaker 2: to be a logical timeframe. Apparently about eighty nine percent 17 00:00:47,120 --> 00:00:52,040 Speaker 2: of retirement village villas are relcensed within a nine month period. 18 00:00:52,040 --> 00:00:54,040 Speaker 2: That was the kind of the latest research that was 19 00:00:54,160 --> 00:00:57,400 Speaker 2: used when we prepared our submission a couple of years ago, 20 00:00:57,480 --> 00:01:00,600 Speaker 2: and it's the twelve months then also gives operator time 21 00:01:00,680 --> 00:01:03,680 Speaker 2: to look at their financial modeling and how that might 22 00:01:03,760 --> 00:01:05,000 Speaker 2: fit with what they're doing. 23 00:01:05,400 --> 00:01:07,840 Speaker 1: Carol, it does seem an extraordinary amount of time. I mean, 24 00:01:07,840 --> 00:01:09,680 Speaker 1: that is far too long for anybody to be getting 25 00:01:09,680 --> 00:01:12,479 Speaker 1: any money out of the primary residence that they are in. 26 00:01:13,000 --> 00:01:14,399 Speaker 1: Why is it so long? 27 00:01:17,080 --> 00:01:18,520 Speaker 2: I've lost you? 28 00:01:18,560 --> 00:01:19,520 Speaker 1: Can you hear me now? 29 00:01:20,560 --> 00:01:21,720 Speaker 2: Yes? I can? Yes, you come back. 30 00:01:21,760 --> 00:01:24,800 Speaker 1: Okay. What I was saying, Carol is twelve months is 31 00:01:24,840 --> 00:01:27,200 Speaker 1: a very long time to get your money out of. Basically, 32 00:01:27,240 --> 00:01:29,679 Speaker 1: what is your house? Why does it have to be 33 00:01:29,760 --> 00:01:30,160 Speaker 1: that long? 34 00:01:31,280 --> 00:01:33,479 Speaker 2: Well, Heather, if we were out of the open marketplace 35 00:01:33,520 --> 00:01:37,000 Speaker 2: selling our homes, any length of time can happen. And 36 00:01:37,080 --> 00:01:39,600 Speaker 2: in the market recently some people have waited a reasonable 37 00:01:39,600 --> 00:01:41,440 Speaker 2: amount of time to be able to sell their home. 38 00:01:41,959 --> 00:01:44,200 Speaker 2: It's the same thing in the retirement the lid sector. 39 00:01:44,600 --> 00:01:46,759 Speaker 2: It takes a reasonable amount of time for the unit 40 00:01:46,800 --> 00:01:50,320 Speaker 2: to be refurbished and then to be re licensed, and 41 00:01:50,600 --> 00:01:54,600 Speaker 2: the operators currently are waiting until it's re licensed before 42 00:01:54,600 --> 00:01:56,240 Speaker 2: they met the final financial payment. 43 00:01:56,520 --> 00:02:00,760 Speaker 1: Can I ask you something thought than that? Yeah. In 44 00:02:00,800 --> 00:02:04,720 Speaker 1: the private market it's jeez. At the moment, obviously the 45 00:02:04,720 --> 00:02:06,400 Speaker 1: market's a bit rubbish, so it might take you twelve 46 00:02:06,440 --> 00:02:08,639 Speaker 1: months to sell your house, but generally it doesn't take 47 00:02:08,639 --> 00:02:10,440 Speaker 1: you that long at all. And then the other thing 48 00:02:10,480 --> 00:02:12,720 Speaker 1: to consider as well is that you know you have 49 00:02:12,840 --> 00:02:15,040 Speaker 1: we're getting numbers, and we just had them. I think 50 00:02:15,040 --> 00:02:17,520 Speaker 1: earlier this week that we're getting this massive crunch coming 51 00:02:17,600 --> 00:02:19,520 Speaker 1: up where there will be so many people trying to 52 00:02:19,520 --> 00:02:25,239 Speaker 1: get into residences and so few available. So I can't 53 00:02:25,280 --> 00:02:28,280 Speaker 1: help but feel that these villagers are ripping you guys 54 00:02:28,320 --> 00:02:30,720 Speaker 1: off by hanging on to your money for twelve months. 55 00:02:31,400 --> 00:02:33,560 Speaker 2: I don't think that that every single person is going 56 00:02:33,600 --> 00:02:35,400 Speaker 2: to have their money held on to for twelve months. 57 00:02:35,639 --> 00:02:38,040 Speaker 2: Come on, let's let's kind of get real here. Many 58 00:02:38,040 --> 00:02:40,880 Speaker 2: of them are re licensed long before that twelve month period. 59 00:02:41,200 --> 00:02:45,040 Speaker 2: But this has been an open ended situation, and every 60 00:02:45,120 --> 00:02:48,520 Speaker 2: resident is saying, I just want some a surety, assurance 61 00:02:48,560 --> 00:02:51,040 Speaker 2: and some security that I know when I'm going to 62 00:02:51,080 --> 00:02:53,480 Speaker 2: get my money, whether it's going to my estate, whether 63 00:02:53,520 --> 00:02:55,680 Speaker 2: it's going for my aged care, whether it's going to 64 00:02:55,720 --> 00:02:56,240 Speaker 2: my family. 65 00:02:56,760 --> 00:02:59,960 Speaker 1: Okay, now, in some cases obviously any assurance. 66 00:03:00,240 --> 00:03:01,359 Speaker 2: It's been an open end. 67 00:03:01,840 --> 00:03:04,320 Speaker 1: I mean, I suppose twelve months is better than the 68 00:03:04,360 --> 00:03:06,400 Speaker 1: state than what it was up to now. There is 69 00:03:06,520 --> 00:03:09,600 Speaker 1: obviously the opportunity for former residents to get early access 70 00:03:09,639 --> 00:03:11,800 Speaker 1: to funds if they have specific need, what would what 71 00:03:11,840 --> 00:03:12,840 Speaker 1: would qualify for that? 72 00:03:14,080 --> 00:03:18,679 Speaker 2: So if someone, for instance, had a dire situation where 73 00:03:18,680 --> 00:03:21,320 Speaker 2: they needed to go into aged care immediately and there 74 00:03:21,400 --> 00:03:24,680 Speaker 2: wasn't any aged care available immediately available that they had 75 00:03:24,680 --> 00:03:29,200 Speaker 2: to pay for, then they could have an opportunity to say, look, 76 00:03:29,440 --> 00:03:32,000 Speaker 2: can we have our money sooner than that. Or it 77 00:03:32,000 --> 00:03:35,200 Speaker 2: could be a dire family situation where they're depending and 78 00:03:35,280 --> 00:03:37,440 Speaker 2: relying on the inheritance that they're going to get from 79 00:03:37,480 --> 00:03:41,480 Speaker 2: there from the estate and they need that money sooner. 80 00:03:41,520 --> 00:03:44,279 Speaker 2: So there is hardship classes in there, both for operators 81 00:03:44,640 --> 00:03:45,560 Speaker 2: and for residents. 82 00:03:46,000 --> 00:03:48,080 Speaker 1: Yeah, brilliant. Hey listen Carol, as always, thank you so 83 00:03:48,160 --> 00:03:50,240 Speaker 1: much for your time. That's Carol Shepherd, spokesperson for the 84 00:03:50,240 --> 00:03:55,280 Speaker 1: Retirement Village's Residence Council. For more from Hither Duplessy Alan Drive, 85 00:03:55,440 --> 00:03:58,880 Speaker 1: listen live to news talks. It'd be from four pm weekdays, 86 00:03:58,960 --> 00:04:01,160 Speaker 1: or follow the podcast on iHeartRadio.