The taxpayer-funded broadcaster has its own Fact Check team determining the accuracy of claims by politicians, public figures, advocacy groups and institutions.
It’s a shame it did not check on its story on ABC 7.30: “How an idyllic retirement resort became a 'financial prison”.
Claim 1: Lifestyle Communities charges a Deferred Management Fee.
Correct. It does and it clearly states it does and it is capped at 20% after five years. There is even a video of Managing Director and Co-founder James Kelly explaining it.
Lifestyle Communities charges a DFM to lower its home prices, which was not mentioned in the ABC 7.30 report.
Four homes are available at Lifestyle Communities Wollert, with a two-bedroom home from $565,000, with a DMF capped at 20% after five years ($113,000).
The main protagonist, resident Geoff Gauci, compared Lifestyle Communities in an unfavourable way to Stockland. The Stockland Halcyon land lease brand does not charge a DMF. A two-bedroom home at its new community Stockland Halcyon Evergreen in Clyde, which has a discovery tour on 31 July, is selling a two-bedroom home for $813,089.
Claim 2: Residents said Lifestyle Communities charged dead people for rent until the home was sold.
Last Friday Lifestyle Communities told the ASX it took on average 63 days to sell a home with an average sale price growth of 10.02%.
REIV (Real Estate Institute Victoria) states it takes 61 days to sell a property outside of metropolitan Melbourne.
Claim 3: Unfair fees and price gouging.
The weekly fee is detailed on the website and is reviewed on 1 July each year with any increases capped at CPI or 3.5% (whichever is greater). 80 residents have taken the matter to the Victorian Civil and Administrative Tribunal (VCAT), where Lifestyle Communities rejects the allegations and has asked for the hearing to be expedited.
On Facebook, residents of Lifestyle Communities had their say too:
“The lower purchase price at Lifestyle Communities enabled us to buy into Lifestyle. Best thing we ever did. So happy for the six years we have lived in our community.” Jeanette Douglas.
“Typical one-sided ABC journalism! Did they talk to any happy homeowners (like me)? Of course not.” Laraine Stokes.
“From approximately 80 homeowners the best that the ABC could come up with was 80 who obviously didn't read their contract thoroughly, or even get their solicitor or financial adviser to go through it!” Joan Smith.
“We live in Lifestyle Berwick Waters and I can tell you that program was the biggest load of rubbish I’ve ever seen. Totally one-sided, most houses sell within a month and EVERYONE was aware of fees before moving in.” Ken Lor.
“We did our homework and Lifestyle was the best. Read the contracts before you sign.” Joyleen Farrugia.
“The ABC did interview Wollert residents who expressed happy and positive responses to their choice to purchase with Lifestyle Communities, as I am. They ‘democratically’ chose not to air those positive results... Everything claimed in the TV program is in the purchase contract. It is fully explained before, during and after contract signing in the presence of a solicitor. The takeout from this is ‘do your own research, read your contract, ask questions, read your contract again.’ Pretty simple really.” Rosemary Armstrong.
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