Aveo is releasing two new contracts next month, adding to their standard contract which they call the Aveo Way.
This standard contract is a 35% DMF over three years. You can depart the village within six months and get your money back. They guarantee to buyback the unit within six months if not sold. You don’t share in the capital gain, but you don’t pay any marketing costs or refurbishment costs.
It has been operating for three years.
‘Aveo Essentials’ is perhaps designed to address media criticism of the 35% over three years DMF.
It will now offer 35% over five years but the money back guarantee is only for three months and the buyback guarantee takes place after 12 months.
Most of us appreciate that once a person is into a village they are unlikely to move out within three or six months of course.
Aveo has not indicated whether this contract will have a higher entry price to their standard contract to compensate for the five-year DMF.
‘Aveo Certainty’ is all about a care path for the incoming resident. It’s a three year/35% DMF with a six-month money back guarantee and buyback guarantee.
And it adds that you can transfer to any Freedom unit (Aveo’s private aged care program delivered in a service department) or an Aveo aged care facility with no extra DMF. Your net equity is treated as a RAD.
They will charge $2,000 a year ‘membership’ fee for this privilege.
This contract will only be available at selected QLD locations.
Most not-for-profit operators with a co-located facility would say all their contracts are like ‘Aveo Certainty’ (without a membership).
Rymans brought this model over from New Zealand four years ago very successfully.
These contracts do not reflect the level of choice that say the new Lendlease options provide customers. But Lendlease points out that while they offer significant choice, around 85% of customers still choose the traditional DMF model, reinforcing the view that village customers would prefer to enjoy the village now at a lower price and pay for it later when they are no longer with us.
Is this your experience?