Statutory buyback included in SA Bill

Statutory buyback included in SA BillThe Property Council of Australia has condemned a State Government proposal to impose a statutory buy-back mechanism in the draft South Australian Retirement Villages Bill, which was tabled in Parliament this month.A buy-back mechanism would mean that operators of retirement villages would be forced to mandatorily buy-back residents’ homes if a residence could not be sold within 18 months.SA Executive Director of the Property Council Daniel Gannon said South Australia cannot afford policies that damage job creation and investment.”This decision, if supported by Parliament, will smash local operators with a compulsory buy-back and make residents’ units worth less, which is bad news for people living in retirement villages,” he said.”This isn’t just red-tape – it’s a straitjacket for the sector in an economic climate that sorely needs economic growth and job creation.””The 2013-2014 McCrindle Baynes Village Census found that 93 per cent of residents surveyed felt that their decision to move into a village had been a good financial decision.”Therefore, the Government’s 18 month buy-back provision would in most cases benefit the estate rather than residents themselves. Put simply, this is not good policy.”Mr Gannon said that uncertainty around regulation of the industry has made it difficult for operators to prepare their budgets and frame their contractual arrangements, making South Australia a less attractive investment destination for retirement village operators.Read the full media release in response to the Bill here.The Bill will be debated in Parliament soon and the Property Council will keep the sector updated on developments.