seniors living accommodation models · what seniors want lasa integrated retirement housing...

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

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Who is Bolton Clarke?

LASA Integrated Retirement Housing Conference 14 June 2018

Stay in existing home

LASA Integrated Retirement Housing Conference 14 June 2018

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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

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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

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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

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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

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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

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Retirement villages

LASA Integrated Retirement Housing Conference 14 June 2018

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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

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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

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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)

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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

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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

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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

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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

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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

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What seniors want

LASA Integrated Retirement Housing Conference 14 June 2018Productivity Commission Research Paper, Housing Decisions of Older Australians, Dec 2015

Freehold & Strata

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Freehold & Strata

LASA Integrated Retirement Housing Conference 14 June 2018

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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

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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

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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

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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?