Aveo simplifies contracts by “now”, “later” or “obligation” including a DMF of 15%
Aveo introduced new contracts in its 92 retirement communities, offering three payment options. Here they are with a $ 500,000 village house as an example.
The Now option lets you pay a management fee of just 15 percent now, instead of 35 percent later. On a $ 500,000 house, you pay $ 75,000 now and receive $ 425,000 when you leave. The costs are amortized over two years, so if you have only lived in the village for one year, you will be reimbursed 5%. There is a six month money back guarantee.
The Later The option is a typical retirement village contract: you pay the lowest price up front, with a management fee of 35 percent ($ 125,000) at the end, leaving a payment of $ 375,000. The payment guarantee is also within six months.
The Bind The option increases the purchase price by 30 percent and also has a 3 percent set-up fee, which is non-refundable. As part of this contract, you get your purchase price back, with a three-month money-back guarantee. On a standard purchase of $ 500,000, the price drops to $ 650,000 plus a non-refundable set-up fee of $ 15,000. You get the $ 650,000 back when you leave.
Over the past 12 months, Aveo has conducted a series of research projects designed to better understand its customers.
âThere remains confusion about the fees and charges associated with living in retirement, creating a level of uncertainty and mistrust in our industry. We realized that there was a need for more simplicity and clarity, a desire for more choice and flexibility, and a desire for certainty and assurance â, noted Bridgid allsopp, Head of Marketing (pictured right).
Impact on the pension sales tool
Aveo, which was purchased by entities controlled by Brookfield Asset Management in November 2019, Inc. also partnered with Rachel Lane at Elderly Care Gurus to create a new âVillage Guruâ software. The software enables Aveo’s sales team to provide a detailed report that shows customers the costs of the village under different payment options as well as estimates of their old age pension, rent assistance and care costs. home.
More clarity: 6 months full refund / no marketing fees
Aveo has also clarified its basic terms in an effort to remove the ambiguity.
Relocation as a reimbursement guarantee – If the client decides within six months that the retirement life is not suitable for him, he will be fully reimbursed.
No additional costs âNo capital loss, no fluctuation in the real estate market, no marketing or selling costs.
Six month money back guarantee – the entry payment and any additional contributions are returned within six months of the client’s departure from the community.