NSW discussion paper submission

The Property Council has recently finalised its submission to the NSW Government in response to a discussion paper on exit entitlements and recurrent charges capping.

The Government sought feedback on how to implement its announced policy of requiring village operators to 'buy back' units or apartments from departing residents within 6 months in metropolitan areas and 12 months in regional NSW.

You can view the Property Council's final submission here. The submission sets out alternate approaches that achieve the Government's policy objectives without creating adverse impacts through a reduction in access to capital, reduction in contract choices, decrease in sale prices for outgoing residents and a significant increase in risk of liquidation for smaller operators.

The Property Council also put forward an independent assessment of the 'Fair Trading Model' that was used in the discussion paper to estimate the revenue that would be transferred from retirement village operators to (former) registered interest holders due to the reforms.

The analysis by Corview can be found here.