I continue to be amazed by the readiness of many retirees to give away their children’s inheritance and line the pockets of wealthy developers by moving into a “license to occupy” village.
Not only do they not own the land where they live, most lose 30% of the original purchase price when they leave or pass on and the family may get the residue after some interval. The residence is sold on to the next occupants making the owners of the facility a huge profit.
I give an example: A lady with one daughter bought a ‘license to occupy’ property 20 years ago for $120,000.
During all those years in residence this lady paid monthly fees for maintenance and use of the facilities.
When she passed away the daughter received a settlement of $80,000 from the owner.
Six months later the same residence, redecorated at the expense of the former resident, was sold to a new ‘license to occupy’ resident for $1.3 million.
The fact that there is no capital gain on the investment and the [village] owner holds the capital and makes the profit is, in my view, outrageous.
I cannot understand why the elderly give away this money. In my view it is not a worthy cause. There are villages which run a much fairer system entitling the occupiers to capital gain. Karaka Pines is one. I have no financial interest in this company but I would like it to be known that their system is a fair one.
Josephine Richards, Omokoroa
