Seniors living accommodation modelsWhat’s working, what’s not, and what will the future look like?
14 June 2018
LASA Integrated Retirement Housing Conference 14 June 2018 2
OF SENIORS LIVING
3
Who is Bolton Clarke?
LASA Integrated Retirement Housing Conference 14 June 2018
Stay in existing home
LASA Integrated Retirement Housing Conference 14 June 2018
4
The ageing journey in housing
Productivity Commission Research Paper, Housing Decisions of Older Australians, Dec 2015
Increasing difficulty in home
maintenance – need for ‘right-sizing’
Self-sufficient in daily living and care
needs
Comfortable living in standard dwelling
Life stage
Housing
Needs
Care
Outcomes
Active60-75
Frail75+
Passive65-85
Increasing need for age-appropriate layout
and facilities
Increasing need for complex
medical facilities
Increasing need for daily living
assistance
Proactive Downsizing
Home modifications, low/moderate level homecare
Reactive Downsizing, Age-specific housing, moderate
to high level homecare
Residential Aged Care
5
Life stage
Seniors Housing
Outcomes
Active60-75
Frail75+
Passive65-85
HOME ILU SA RAC
Integrated RL communities
MHC
In-home care
Aged Care
The ageing journey in housing
LASA Integrated Retirement Housing Conference 14 June 2018
6
Where do older Australians live?
Proportion of population >65 years in 2011
LASA Integrated Retirement Housing Conference 14 June 2018
Productivity Commission Research Paper, Housing Decisions of Older Australians, Dec 2015
7
Where do older Australians live?
Proportion of population >65 years in 2011
LASA Integrated Retirement Housing Conference 14 June 2018
Productivity Commission Research Paper, Housing Decisions of Older Australians, Dec 2015
8
Seniors housing legal framework
Freehold (Strata Title)
MHE (Land Lease)
Loan/Lease or Licence
Rental
Company Title
Body Corporate & Community Management Act
Manufactured Homes (Residential Parks) Act 2003
Retirement Villages Act 1999
Residential Tenancies and Rooming Accommodation Act 2008
Corporations Act 2001 (Cth)
LASA Integrated Retirement Housing Conference 14 June 2018
Retirement Villages
10
Retirement villages
LASA Integrated Retirement Housing Conference 14 June 2018
11
Retirement villages
LASA Integrated Retirement Housing Conference 14 June 2018
Sound value propositions:
Socialisation
Delayed entry into aged care
Safety and security
Ageing in place
12
Retirement villages
LASA Integrated Retirement Housing Conference 14 June 2018
MACRO DRIVERS
Living longer
Moving later (or not at all)
Catalysing event preceding move
RAC funding
RAC
2-3 yr avg tenure moving to 6-18 months
Palliation
End of life care
Secure care
Retirement living
Filling low-medium care gap
Increasing entry age, avg age
Shorter tenure
Increasing divergence FP vs NFP
13
Retirement villages
LASA Integrated Retirement Housing Conference 14 June 2018
Increasing divergence
For Profit(property play)
Not for Profit(care, end-of-life, ageing-in-place)
14
LASA Integrated Retirement Housing Conference 14 June 2018
For Profit Not for Profit
ILU/SA’s Property play
RACPartnerships
Home care
ILU/SA’s
Owned & integratedRAC
Home care
Strategic approach
We offer a variety of purchase terms including exposure to capital gain.
We can refer you to our partners for home care services.
We have a co-located RAC operated by our partners.
We will look after you for the rest of your life.
We will manage your needs as they increase.
We will structure solutions that are right for you.
Retirement villages
15
Retirement villages
LASA Integrated Retirement Housing Conference 14 June 2018
MACRO DRIVERS
Living longer
Moving later (or not at all)
Catalysing event preceding move
RAC funding
RAC
2-3 yr avg tenure moving to 6-18 months
Palliation
End of life care
Secure care
Retirement living
Filling low-medium care vacuum
Increasing entry age, avg age
Shorter tenure
Increasing divergence FP vs NFP
SAP’s, Private aged care(RAC lite)
SeasonsFreedom
Mobile Home Communities
17
Traditional RV to RAC model
LASA Integrated Retirement Housing Conference 14 June 2018
Absorbing demand from the 55-75 age group.
Attract capital backing due to rental yield.
Modern and contemporary
? over legal age limitation.
May lack an “ageing-in-place” service offering.
Massive margin on new home sales > danger around re-sale pricing.
No control of product quality once sold.
Future iterations of seniors housing
19
LASA Integrated Retirement Housing Conference 14 June 2018
CHECKLIST Similar size
Close to transport
Close to amenities
Small garden
Pets
Remain part of community
Affordable
Medium to high densityNational Seniors Australia, Seniors Downsizing on their own terms, 2015
Wants/Needs
Product
SeniorsWhat
Want
20
What seniors want
LASA Integrated Retirement Housing Conference 14 June 2018
Older Australians strongly prefer to ‘age in place’.
Vast majority of older Australians are living in private dwellings - 80 per cent own their home.
Most people that make the move to age-specific housing are forced to do so by declining health, but do not move until very late in their lives.
Measures of housing utilisation are a poor indicator of what people actually want.
Downsizing is often presented as a win-win for older people who struggle to maintain their property and also wish to release some equity to supplement their income. However, this remains a relatively uncommon path for older Australians.
Primary reasons for not selling the family home are a very strong desire to age in place.
Productivity Commission Research Paper, Housing Decisions of Older Australians, Dec 2015
21
What seniors want
LASA Integrated Retirement Housing Conference 14 June 2018Productivity Commission Research Paper, Housing Decisions of Older Australians, Dec 2015
Freehold & Strata
23
Freehold & Strata
LASA Integrated Retirement Housing Conference 14 June 2018
24
Freehold & Strata
LASA Integrated Retirement Housing Conference 14 June 2018
BCC
Buildings Land Common property
Admin Fund
Sinking Fund
Residents Committee
Operator’s lot: Pool/bowling green Community centre Offices/reception Bus
GS Fund
Maint Fund
CR Fund
25
Freehold & Strata
LASA Integrated Retirement Housing Conference 14 June 2018
1. RESIDENT
Freehold Title
Residence Agreement
Public Information Document (PID)
2. RESIDENT
Freehold TitleLease
Public Information Document (PID)
3. RESIDENT Freehold Title
Sub-lease
CaretakingAgreement
Strata MngtAgreementBody Corporate
Vill
age
Op
era
tor
Contract Package (legal framework)
Rental
27
Rental
LASA Integrated Retirement Housing Conference 14 June 2018
About 15% of older Australians are renters.
About half of renters older than 75 are renting publicly.
For most older Australians who rent, it is a necessity, not a desirable choice.
Renting in older age is associated with a number of potential risks, including
poverty, homelessness and adverse impacts upon mental health and wellbeing.
Single Couple
Rent p/week $200 $265
Rent assistance ($66.50) ($62.70)
Net Rent $133.50 $202.30
Pension $453.50 $684.00
Rent % of Pension 29% 30%
@30% of Age Pension + Rent Asst
28
The challenge!
Proportion of population >65 years in 2011
LASA Integrated Retirement Housing Conference 14 June 2018
Productivity Commission Research Paper, Housing Decisions of Older Australians, Dec 2015
Questions?