Pensioners Trish and Wayne Reece are seeking to leave their Lifestyle Communities village in Shepparton, Victoria, after almost a decade due to the high exit fees charged by the company. Lifestyle Communities operate land lease communities where residents own their homes but rent the land. Exit fees start at 4% and can go up to 20% of the selling price after five years. This has left the Reece’s feeling financially trapped.
Following an investigation by ABC and 7.30, it was revealed that Lifestyle Communities was charging unfair fees, including to deceased residents, and had sparked discontent among residents, leading to 80 VCAT claims at their Wollert community. The Victorian government has announced reforms, including a standardized site agreement.
The negative publicity caused Lifestyle Communities’ shares to plummet by 24% as investors lost confidence. The company denied offering to waive exit fees to the Reece’s, citing contractual obligations. Despite making a profit, the Reece’s were left disappointed and feeling deceived by the company.
Many residents are now calling for government regulation of the land lease industry and for more transparency around exit fees. Lifestyle Communities defended its model, stating that it enables affordable living upfront but has faced criticism for its handling of fees and contracts.
Residents are divided, with some defending the company and others expressing concern over potential negative impacts on property values. Lifestyle Communities maintains that its model is secure and easy to sell, but for residents like the Reece’s, the high exit fees have become a financial burden preventing them from leaving the community they no longer want to live in.
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Photo credit amp.abc.net.au