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Aged Care Services
nipper
post Posted: Aug 14 2017, 09:57 AM
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Bupa has called on the Turnbull government to overhaul aged-care funding and introduce a market-driven system that will see Australians financially contribute to their care.

The company, in its submission to a Senate inquiry into the sector, said it recognised that in the current budgetary environment, it was not realistic to expect the government to increase funding to the industry.

“We therefore believe the Productivity Commission’s recommendation to move to market-driven aged-care funding, where people who can afford it contribute to the cost of their personal care, while those who cannot afford it continue to be heavily subsidised, should be seriously considered as part of a much-needed national conversation on ageing and aged care,” the company said.

“While we acknowledge it is often not a simple process to reform funding, Australians expect and deserve high-quality aged care ... and urgent funding reform is required if we want to ensure Australians can continue to access high-quality aged care.”

The submission highlighted that Council of The Ageing (COTA) research had found that consumers did not mind being asked to pay more if they could afford it, but they wanted more choice and a better-quality system.

Bupa warned that recent changes to residential aged-care funding, particularly to the aged-care funding instrument, were threatening the sustainability of the sector and its capacity to provide high-quality care to residents, including those with complex care needs



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

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nipper
post Posted: Mar 29 2017, 02:23 PM
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In Reply To: balance's post @ Mar 29 2017, 02:15 PM

too true, balance; unfortunately, too true in the points you raise. the complexity, and having to make an 'informed decision' at a point in time, when uncertainties abound, makes for confusion, and then some. Contact points and the 'expertise' of those in call centres is an added joke, of the worst kind.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

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balance
post Posted: Mar 29 2017, 02:15 PM
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In Reply To: nipper's post @ Mar 28 2017, 03:33 PM

The payment of interest on the unpaid RAD rather than paying the RAD lump sum does not work well in our experience.


Given the interest rate is (was?) over 6% and the pensioner bank accounts were paying about 3% (less now I think) a resident is going out backwards at greater rate if he/she invests safely rather paying the RAD up front.

Keeping the cash in the bank is then considered an asset and fees go up and pension goes down (if on one)

If anyone or anyone's parents are looking to go into care in the near future, do your research, get pro advice, as the govt departments are $#@! hopelessly inept and as a rule do not understand their own rules.

It is a minefield and little mistakes can cost a lot of money. Find a way to legally hide your money, spend it or give it away > 5years out from entering care or pension age.



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nipper
post Posted: Mar 28 2017, 03:33 PM
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Crunch time for aged-care payments
QUOTE
A key change is happening inside the aged-care sector: simply, more and more people are tiring of ­offering interest-free loans to aged-care companies. Instead, they are opting for a new payment mechanism that just might help them keep the family home.

Here's how it works. If entering a retirement home, then after being assessed by the government on your assets and income, you may have to pay a fee for nursing home accommodation costs.

Since 2014, new residents have the choice to either pay an ongoing rental style fee called a ''daily accommodation payment'' or otherwise opt to make a one-off lump-sum payment called a ''refundable accommodation deposit'', also known as ''the RAD''.

Before July 1, 2014, the aged-care provider had more control in being able to dictate terms on accommodation payments. Flexibility with the new rules potentially allow residents to keep the family home when moving into aged care as they are not forced to pay a lump-sum amount for accommodation as they were in the past.

If they opt for the ongoing accommodation payment to the aged-care provider, the resident could look to rent out the family home,which would generate income to help cover the nursing home fees.

We recently had a very good insight into the area from the results of ASX-listed aged-care provider Estia Health: Estia's management under new CEO Norah Barlow suggests an average stay for a resident in one of its facilities is 2.3 years and that the average RAD charged is $377,000. Estia reported that over the six months from July to December 2016, the number of residents who paid RADs fell from 2256 to 1860 while the number of rental style payments increased from 514 residents to 690.

This indicates more people are opting to pay an ongoing accommodation fee rather than have a large lump-sum locked up by the aged-care provider at zero per cent interest. The implications are that aged-care providers will need to manage cash flow carefully moving forward so that they can meet the increasing number of residents shifting over to the rental style payment from the RAD.

It is a common misconception that the lump sum provided to the aged-care provider is set aside and wholly invested before being repaid upon the resident's exit. In reality, the lump-sum payment is absorbed by the aged-care provider and used for general operations and to fund construction of new places...........
http://www.theaustralian.com.au/business/w...886d992c51cb671

"consolidated revenue" = black hole



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Dec 19 2016, 09:36 AM
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QUOTE
Aura Australia, a joint venture between former RetireAustralia executives and Blue Sky Alternative Investments (BLA), is planning a $67 million retirement village at Maroochydore on the Sunshine Coast. On almost one hectare, acquired for $6 million, the joint venture will develop a vertical retirement village of about four storeys.

"People are downsizing from houses to apartments," Blue Sky Private Real Estate director Stuart Lockhart told The Australian Financial Review. "A lot of people who haven't lived in apartments before like the ability to just walk down the hallway, take the lift and arrive at the communal facilities. They like the ease of access."

It is the second project between listed private equity investor Blue Sky and the former RetireAustralia people, including its founder Tim Russell.

Blue Sky, which acquired 50 per cent of Aura in September, will develop the latest project through its Private Real Estate arm. Aura will manage it.

It is expected the 116-unit Maroochydore development, at the former site of the Swan Bowls Club on Anzac Avenue, will be finished by the end of 2019. The Aura village will take shape opposite the St Vincent's Care Services Maroochydore, a new aged-care facility set to open in January 2017.

"This is the future of Australian retirement: safe, secure, vibrant communities that are close to essential services, friends and family," Mr Russell said.

Mr Lockhart said investment in retirement villages was not keeping up with the ageing population. Australians over 65 are forecast to comprise 20 per cent of the population by 2050.

"Queensland is a popular retirement choice, and currently has around 28,000 independent living units. "A conservative estimate is that by 2050, we will need more than four times the current supply."
AFR



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: early birds  
 
nipper
post Posted: Nov 24 2016, 09:52 AM
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In Reply To: early birds's post @ Nov 24 2016, 09:43 AM

always liked LIC - they have held up, recently. Although the business model is built on sales (locate, develop, market, sell) the tailwinds are still there
QUOTE
• Approximately one in three new home sales come from referrals
• Pre-sales on new communities are increasing
• We have wait lists on all existing communities.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: early birds  
 


early birds
post Posted: Nov 24 2016, 09:43 AM
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In Reply To: nipper's post @ Nov 24 2016, 09:31 AM

so we might see aussie age care sector to have some sort merger activities as Govt. said to pull some money away that knocked crap out this sector last two months or so.
i'm in EHE at moment. anything else in this sector nipper?? tongue.gif



 
nipper
post Posted: Nov 24 2016, 09:31 AM
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In Reply To: nipper's post @ Oct 31 2016, 08:15 PM

QUOTE
A major US-based trailer park operator is believed to be poised to put the country's modular housing industry into play, with Hometown America tipped to be planning a takeover bid for Gateway Lifestyle GTY and Ingenia Communities INA in an upcoming deal that could create a $1 billion-plus Australian behemoth.

Some have suggested that Bank of America Merrill Lynch could be involved in a prospective transaction, although it is unclear what banks are working with the parties as advisers. It is also uncertain whether the group is looking at buying both targets and merging them or owning only one, although many believe bringing the $463 million Ingenia and $643.7m Gateway together makes sense due to the synergistic benefits.

The modular housing sector in Australia remains highly attractive to American groups that have the expertise running trailer parks and are eager to consolidate the Australian market. Already, Blackstone and Kohlberg Roberts have circled Gateway Lifestyle before it listed around the middle of last year, as did Hometown America at the time...........
The Australian



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: early birds  
 
nipper
post Posted: Oct 31 2016, 08:15 PM
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as well as these two, there is another player in the manufactured homes space

Ingenia Communities Group - INA - owns, manages and develops a diversified portfolio of 61 quality affordable seniors living communities across Australia. INA has three segments including Garden Villages (rental), Settlers Lifestyle (Deferred Management Fee) and Active Lifestyle Estates (Manufactured Home Estates).

Lifestyle Communities Limited - LIC - develops, owns and manages affordable independent living communities for working, semi-retired or retired people.

Gateway Lifestyle Group - ASX Code: GTY

QUOTE
Gateway Lifestyle Group is one of Australia's largest manufactured home estate providers operating within the broader aged accommodation industry. With a current 5 per cent yield supported by stable and growing cash flows, GTY is an attractive investment option for income-oriented investors. GTY provides affordable community living options to over 55s. Listed in 2015 with 36 communities, the strategy is to acquire and convert mature and mixed-use MHEs in the highly fragmented market. This year the company acquired 17 communities, bringing the total to 53, which are spread across eastern states.

To generate revenue GTY makes a margin on manufactured home sales and charges residents weekly rent for the right to occupy sites and for facilities maintenance. GTY owns the underlying land and residents own the manufactured home. The average sale price is about $245,000; typically prices are 40-60 per cent of the median house price in the surrounding areas. GTY generates a $100,000 margin on purchases from the manufacturer of the home. Rent averages $146 per week, and rises each year at or above the rate of inflation.

GTY should see steady demand in coming years as Australia grapples with housing affordability and the growing population of underfunded retirees.

According to the ABS and the 2015 Intergenerational Report, the median superannuation balance for persons over 60 and not yet retired is $95,000, while the mean household wealth of lone persons aged over 65 is $620,000. In other words, the majority of wealth is tied up in home equity.

The average retiree, who retires at 60 and lives to 83, is expected to run out of savings and investments 10 years into retirement. This represents a 13-year funding gap.

Meanwhile, Australia is in the midst of a housing affordability crisis after two decades of house price appreciation at double the rate of median wage growth.

For underfunded retirees GTY provides a way to release equity in the family home while maintaining the ability to live independently in a community of like-minded residents.

Industry: Retirement accommodation

CY17 forecast distribution: 12 cents per share
Jonathan Wilson is an analyst at www.clime.com.au



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

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early birds
post Posted: Sep 7 2016, 10:35 AM
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In Reply To: mrbear's post @ Sep 6 2016, 04:15 PM

ehe bounced from low of under 2.50 two session ago to 3.20 this morning... ohmy.gif
i guess people used sell off as opportunity to get in aged care sector. before that was too pricy.
i missed it again.



 
 


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