Brian Milligan (13 November 2015, bbc.co.uk) recently wrote about a vulture capitalist scam sold as care. He mentioned the ‘exit fees’ paid by residents of so-called retirement villages: ‘The exit fee depends on how long a resident has lived in the village, but is typically capped at 10% of the original purchase price. However in some cases it can be as high as 30%, after just three years’. But don’t worry folks: ‘The Law Commission is currently investigating this issue, and a fortnight ago declared that such fees are causing “anger and distress”. Milligan gives an example of typical costs:
Retirement Village typical costs
Apartment purchase price (leasehold) £250,000)
Exit fee after ten years (10% cap) £25,000
Annual ground rent £150
Annual rent (alternative to buying) £7,000
Annual service charge £6,000
Care charges (based on 13.5 hours care a week) £6,800
Base: Mid market provider. 2 bedroom apartment
This is just another importation of American crap! They have perfected this rip-off scheme in Australia. Alan Kohler (9 Jul 2014, abc.net.au) spills the hard beans on what the UK version of the scam of the century will hold for retirees: ‘The way most of these things operate is as crooked as bank-owned financial planning and property spruiking. In fact, retirement villages and aged care accommodation are the progeny of the worst of both’. Hard stuff this, which wouldn’t get a sniff by the BBC. ‘Too biased, old boy’, meaning we can’t upset the ruling class and their parasitic buddies.
Alan Kohler strides on: ‘The industry is a booming national disgrace, with three very juicy rackets: deferred fees, ongoing fees that keep going when you die, and bonds.
Taking them one at a time, deferred fees are where you buy a unit in a retirement village at full price, but when the time comes to sell you have to pay the village owner a large percentage of what you get.
One village that I’m familiar with requires 25 per cent of the original purchase price to be paid to the owner, plus 75 per cent of any capital gain. Others simply take 30 per cent of the sale price – 3 per cent a year for a maximum of 10 years.
There are a variety of deferred fee schemes contained in retirement village contracts and they all rely on the fact that when an elderly couple signs it, they tend not to pay much attention to what might happen to the assets when they die.
This is dead right. The easiest dopes to rope are the elderly, and their loving relatives, who just wish to ‘pass the problem on’. Kohler continues: ‘They usually don’t get legal advice and don’t really understand that the village owner, typically a property development company, will get a “deferred fee” of more than $100,000 when it’s time to move on to the next phase of life, or death. On top of the gouge known as “deferred fees”, there are the non-deferred fees – ongoing management fees, usually $100 and $200 a week, but sometimes more’.
These scavenging scum even feed off the dead. ‘But the best thing about the management fees is that they don’t stop when you move out or die and your unit is empty, the garden unadmired and the bowling green not used, by you – it only stops when the unit is sold. And since the village owner is often the selling agent, this can, and often does, take a long time. The children of deceased unit owners have found themselves having to pay crushing management fees for months, sometimes years, on top of the funeral expenses and their grief’.
This obnoxious scam is just another version of how care is being turned into couldn’t give a damn about ripping you off. The profit has gone in the care industry for the working class. The vultures are leaving, as I predicted 20 years ago, and now only want to feed on richer bodies. It’s like lions sizing up a lame, old zebra, which has plenty of belly fat. They are licking their lips, whilst ‘propaganderment’ calls it something like another choice in the health care menu.
It’s like ordering a piece of chicken labelled ‘coq-au-salmonella’.
We’ll only take a pint of your blood now, we’ll drain you of the rest later!
A form of deferred vampirism!
Down with these property development cronies of government.
Make all care free in a Revolutionary New World Order.
lenin nightingale 2015