One of Australia's largest retirement village operators has a money-back guarantee, making the transition into retirement living for Australian retirees feel easier and more secure.
For many looking to downsize, the prospect of leaving the large family home behind can understandably feel unsettling, even if they are ready to spend less time on home maintenance and more time enjoying life.
As more Australians choose to downsize earlier to capitalise on the financial, health and lifestyle benefits that can be explored during their retirement years, they are faced with so many options to consider.
Some are choosing to focus on their lifestyle by moving to a retirement community, and the money-back guarantee available at Aveo communities is allowing retirees to move in with confidence.
The innovative money-back guarantee on offer at Aveo is part of a range of guarantees aiming to provide peace of mind about making the move to an Aveo community.
The money-back guarantee allows new residents to receive a full refund of their purchase price if they decide to move out within the first six months of living in their new home.
Tony Randello, Chief Executive Officer of Aveo, says Aveo developed its money-back guarantee concept in 2020 following extensive market research with potential customers, their families or advisers.
“From the research, we found that the retirement living housing category is clouded by misinformation, as retirement living is sometimes confused with different housing models such as land lease or over-55 communities.
"People want to have certainty in their decisions, and the money-back guarantee is one of the ways we can help them to purchase with confidence,” he says.
Downsizing is about embracing life, not worrying about making the wrong decision.
Downsizers putting health and happiness first - without the risk
Unlike some other housing options, residents at Aveo do not purchase their villa or apartment, but rather purchase the right to reside in their new home using a long-term lease agreement, known as a residence contract.
“It is understandable to feel apprehensive about making a lifestyle change and moving into a retirement community,” Randello says.
“While for most it is a positive experience, it is a different model from purchasing and living in a residential property.
"We are confident that retirees will love their new home at Aveo, but if they decide within six months that retirement living isn’t right for them, they just have to inform us, and they can receive a full refund of the price they paid for their home.”
Under the money-back guarantee, a resident who pays $500,000 to reside in an Aveo community (known in the industry as an “ingoing contribution”) would have six months to use the money-back guarantee and be refunded the full $500,000 paid at entry.
As there is no stamp duty or other costs associated with the purchase price, it is a genuine full refund.
“The purchase price they paid for their home is returned to them.
"Aveo does not charge any management fee to these customers who exercise the money back guarantee option,” Randello says.
The money back guarantee instills trust and confidence for residents.
Simple steps for peace of mind
Aveo has three simple options for how people can purchase their right to reside at Aveo and cover their management fees.
These are known as the Now, Later, and Bond options, providing purchasers with full transparency and a clear understanding of how much they will pay upfront versus how much they will get in return when they leave the community.
And the money-back guarantee applies to all three of these options.
Roger, an Aveo resident, says his contract was upfront and easy to understand. “Everything is laid out, everything’s written in there, what you paid, what you’re going to get at the end, so the family knows exactly what’s going to happen,” he says.
Maggie, another Aveo resident, says she found the money-back guarantee helped ease her concerns about moving.
“The fact you could move in for six months and you could actually leave without incurring any other costs other than your moving costs was a big part of my decision,” she says.
Residents are empowered to craft their own downsizing journey.
Confidence to take the next step
According to Randello, the money-back guarantee gives retirees confidence to make a change to improve their lifestyle.
“Before the money-back guarantee, we were asking people to make a leap into retirement living. The creeping question would always be, ‘But what if it's not right for me?’
By offering a money-back guarantee they have the confidence to make the move.
Almost all residents love their new home and community, and for the small proportion of people who do change their minds, the guarantee is there to support them,” he says.
Aveo recently won the 2024 Australian Service Excellence Award for Customer Service Organisation of the Year and according to a recent survey of almost 6000 residents, Aveo has recently received a 90% resident satisfaction rating.
Although the money-back guarantee is not utilised often at Aveo, Randello says it plays an important part in their service offering to customers.
“While it doesn’t happen often, we have found that the small number of residents that do choose to use the money-back guarantee within the first six months of living in their new home do so due to a change in circumstance, whether that be health or family-related,” he says.
“More often than not, I hear from residents in Aveo communities that they wish they had moved in sooner.
"We are happy to offer this guarantee to Aveo customers and support them through a time of major change in their lives.”
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