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Retirement Village Resident Duration: An Empirical Analysis

Author/s: Lois Towart

Date Published: 1/01/2013

Published in: Volume 19 - 2013 Issue 1 (pages 43 - 56)

Abstract

In Australia, retirement villages are occupied under a number of tenures of which the common feature is the fee structure whereby a resident initially purchases their right to occupy and at the end of their tenure pays an amount based on variable factors to the owner/operator of the village. As the owner/operator receives their return at the end of residents’ tenure, the return can only be estimated based on projections including the tenure of the resident and increase in sale price of units. This paper presents original research into valuation metrics including the length of resident tenure (duration) over a 27 year period.

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Keywords

Resident Duration - Retirement Village - Valuation Metrics

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