Tuesday, Aug 18, 2009 at 17:56
I think one of the setbacks to these types of investments is that, there are undoubtedly hidden agendas that aren't up front.
Rarely does someone come along with an idea to provide
grey nomads more opportunity to travel and enjoy their retirement years - no one is that noble.
Most investors want a quick fast buck or outrageous return on their investment.
We see the result "Schemes" designed to divest retirees of their lifetimes work and savings investment in their own
home, so that the kids and rightful heirs don't get it.
These days we are too politically correct to call such people and schemes for what they really are - swindles!
They usually involve some kinda scheme to get the pensioners homes for a song - just before the swindlers wife / brother etc on the local council has all that land re zoned for multiple occupancy or whatever.
Next, the retirement village is a small "pokey"
home on a handkerchief of land that the retirees never own, and the "cost" of living there (with no gardens or upkeep responsibilities) is some kinda draw down reverse mortgage where the longer the oldies live, the less equity they have in their investment in just the bricks and mortar are worth, and the more %age of it, the retirement
home owns.
Sure the retirees get into a new
home with low maintenance - but the cost is to disinherit their kids, and that after all was the whole "unstated" premise of the development in the first place.
So,
In answer to the question, the FIRST requirement - would be that whatever the investment/development, it be in "freehold green title to the land and improvements" that are designed to increase in capital value over time.
Forget any schemes to get people to give you their lifetimes works savings in their
home, in return for you freeing up a little capital for them to travel more.
Realise that not that many people in Australia are idiots.
Next,
Obviously somewhere out of the weather to store their van and boats etc, and workshops - yes.
One thing I have noticed (I have elderly parents in just such a retirement village as described with everything - library pool bowling green etc etc), and these joint use faculities largely aren't used or are way under utilized.
Why? because the small "bogan element" of retirees take them over and hog the facilities - set up little cliques where others can't feel comfortable using them and so on.
Different story when you have you own
home land house workshop and sheds and pool etc - use it whenever you like - not so at the retirement village.
What do most
grey nomads look for when they travel?
Sure nice scenery, etc are important but MOSTLY they form small communities in which they feel "safe" and away from the pressures of the city and society. Theres a few of these
places up north in WA where the
grey nomads go to get away from winter.
Cleaverville just out of
Dampier /
Karratha in WA rings a bell. (Balla Balla is another and 80 mile beach yet another).
Grey nomads been going there every year for decades - little defacto retirement villages for 6 months of the year to escape winter down south.
They all know each other - they all go there every year and catch up with old friends.
Eventually word spreads and there's so many of them, the local shire have to move in for health sake and set up proper toilet facilities - gravel parking areas, rubbish
bins and a collection service etc etc...and send in a ranger to collect fees to pay for it all, and before you know it - the very thing they went there to escape from, (rangers, local govt and fees etc) destroys the reason they went there (to get away from all that).
So they go somewhere else remote and start again!
Or
Less desirable sorts find the place and problems erupt with excessive noise or drunken behavior, and worse theft of gear - and again the
grey nomads move on, looking for their particular form of utopia.
What are they really looking for?
A sense of old fashioned community where all the neighbors knew each other and looked out for each other.
Get together s' - for a cuppa and a BBQ etc.
I used to see em all the time camped at Balla Balla, some been going there 20 years or more and staying up to 3 months at a time. Nice ol people - would always stop for a chat etc -they would keep an eye on our vehicle for us (while we were on the island).
Then either
young people with noisy quads and motorbikes or loud music noise would arrive, stuff would get stolen and the oldies would be gone...
They would tootle off to somewhere else quiet (usually 80mile beach).
So - they need communal facilities that everyone is welcome at - maybe a community campers kitchen for the spit on a sheep night friday night and
camp oven tuessday night etc.
Place that does that REALLY well - Nanga station in
shark bay!
Yes, a nice "
home base" would be great for those
grey nomads who want a rest from traveling for sure, but getting it right so that it fits a fiscal model where banks will finance it means it almost has to be some kinda scam to disenfranchise pensioners of their lifetimes savings / super and pension, or the banks simply won't back it.
The banks know that the country's screwed fiscally and that the retiree / baby boomers are the only ones with any money left - they will do anything to get their mits on it just as govt is looking for ways to do same - so unless your scheme can pull that off, then the banks won't look at financing it.
Any pensioner/superannuated retiree - worth a few bucks, didn't get that way by falling for schemes such as it sounds like your proposing.
Any other sort of a benevolent variety that they would like, will send you
broke!
How many old retirees bought permanent vans at van parks for retirement - so the could put their equity into superannuation for a good lifestyle into retirement, only to later find out, that the lands so valuable, that now they are being forced out, so the owners can develop the land into a beach front resort etc and at the same time the investment gurus looking after their super didn't foresee the stock market crash, and as a result have lost most of their retirement funds as well?
Most of them got screwed both ways - coming and going!
It remains a bit if a "truism" that about the ONLY thing banks and the govt have trouble screwing you out of these days, is your own bricks and mortar
home.
It's about the only thing left that our old laws still protect (property / ownership).
Anything else you invest into for retirement is dodgy at best.
Good luck with it... I reckon in this fiscal climate, you'll need all the help you cam get -
Grey nomads are rightfully VERY skeptical of any such scams these days.
Cheers
AnswerID:
379481
Follow Up By: Right at home - Tuesday, Aug 18, 2009 at 20:47
Tuesday, Aug 18, 2009 at 20:47
That's awesome Flywest. Really appreciate the insights.
Agree totally about the questionable practices / ethics of a lot of the different options out there right now. People tend to be skeptical because they need to be.
It would be great to come up with an alternative option that offers a genuine advantages and hopefully can avoid the bulk of the pitfalls. That's part of the reason we're looking for open
feedback now - so we can give serious thought to better solutions at the early planning stages.
You've been a champ.
FollowupID:
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Follow Up By: Member - DAZA (QLD) - Tuesday, Aug 18, 2009 at 21:51
Tuesday, Aug 18, 2009 at 21:51
Hey Flywest my sentiments exactly, maybe living on the
Gold Coast since the 1960's I have seen the White Shoe Brigade try every con in the book to make a fast dollar, and when they go down they take a lot of people with them, I am not saying all developers are crooks, but they are in it for the dollars and they rely on other peoples hard earned money, and there is allways a escape clause for them and none for the investor, as you said Bricks and Mortar is the safest way to go, at least if you want to down size to a smaller property in your retirement at least you can't get kicked out if you own it, I know a lot of retirees that would go crazy if they didn't have a garden or a small work bench to make things or repair bits and pieces ect, and as long as they have that and the Amenities like medical and shops in their area they are happy.
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