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Speaker 1: Good news this morning. For the sixty three thousand key

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Speaker 1: he's living in retirement villages, operators will have to repay

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Speaker 1: residents within a year of them moving out. Until now,

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Speaker 1: there's basically been no deadline. Michelle Palmer is Retirement Villages

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Speaker 1: Association executive director, with me this morning. Michelle, good morning,

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Speaker 1: Good morning, Ryan. Can you not on sell the units quickly?

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Speaker 1: What's the hold up?

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Speaker 2: The hold ups the property market? That's it in a nutshell.

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Speaker 2: You know, if we can fix the property market like

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Speaker 2: a few years ago when it was booming, we wouldn't

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Speaker 2: even been talking about the need for repayments at it

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Speaker 2: by a certain date.

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Speaker 1: Is there not a demand for retirement village homes? Is

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Speaker 1: the property market just the same for retirement villages?

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Speaker 2: Well no, there's a bit more of a bit more

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Speaker 2: to it, and we've got a waiting list across the

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Speaker 2: country for people who want to move into retirement villages.

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Speaker 2: The problem is that people just can't sell their homes

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Speaker 2: quick enough to get in. So, you know, in some

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Speaker 2: areas are like christ it's booming a little bit more.

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Speaker 2: You know, people are taking between three and six months

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Speaker 2: to sell their property and are able to move into

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Speaker 2: a retirement village. In other parts of the country, like

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Speaker 2: in Auckland, the property market is a lot slower, and

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Speaker 2: particularly in rural communities, and it can take a lot

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Speaker 2: longer for someone to sell their home to be able

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Speaker 2: to buy in and come into the retirement village.

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Speaker 1: But why should that be the problem of the resident

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Speaker 1: who's moving out.

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Speaker 2: Yeah, that's a fair question, but that's how the model works.

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Speaker 2: So the outgoing resident or their estates, they don't get

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Speaker 2: paid neither does the operator until the new resident moves in.

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Speaker 2: Just as you would if you were selling your own home,

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Speaker 2: you know, you don't get paid that money until the

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Speaker 2: sale is complete, and it's exactly the same with the

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Speaker 2: incoming resident. The payment then is made to the parties

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Speaker 2: that you know, they're both to the operator and also

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Speaker 2: to the outgoing resident.

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Speaker 1: This is not going to be what's the longest that

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Speaker 1: you're aware of someone's had to wait?

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Speaker 2: A really isolated case, but an awful one was just

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Speaker 2: on the two year mark, and you know, a much

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Speaker 2: older village, rural location, and there just wasn't the ability

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Speaker 2: for people to sell. There was absolutely a number of

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Speaker 2: people wanting to move into that villa, but people just

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Speaker 2: couldn't sell their properties.

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Speaker 1: Is this going to bankrupt the time in villages? Is

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Speaker 1: it going to be the end of the world, Because

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Speaker 1: if you're waiting two years to sell out to get

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Speaker 1: your money back from a retirement village, that's your whole

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Speaker 1: life on hold.

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Speaker 2: Yeah. Absolutely, it is for the operators too. They don't

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Speaker 2: they are paying rates and insurance and maintenance. They're keeping

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Speaker 2: the power on and all those things in that in

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Speaker 2: that villa when it's empty, So everyone loses on that. Look,

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Speaker 2: it is an isolated case. Generally speaking, the majority are

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Speaker 2: around the six to seven months at the moment. A

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Speaker 2: year ago it was five and a half months on average,

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Speaker 2: But it does string out across and look, it's just

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Speaker 2: one of those things that is really we're struggling with

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Speaker 2: as a sector. You know, we would love to get

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Speaker 2: those resold as fast as possible. What the government has

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Speaker 2: proposed is really hitting us with a double whammy. We

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Speaker 2: put forward to the government that there's an opportunity for

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Speaker 2: operators to pay interest on the amount payable at the

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Speaker 2: six month mark, when you know, if the unit hadn't

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Speaker 2: been resold, and the government has said they'll take that,

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Speaker 2: and they've also put on that full repayment at twelve.

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Speaker 1: Months, so you're get in both. They've obviously gone and

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Speaker 1: sided with the elderly voters. It sounds like, Michelle, appreciate

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Speaker 1: your time. Michelle Palmer Retirement Villagers Association. For more from

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Speaker 1: Early Edition with Ryan Bridge, Listen live to news talks.

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