Further information...

This is a brief post just to keep people informed that I will be posting more soon. I am in the process of extricating myself from this retirement home/senior citizen home mess and becoming a free citizen once again!!

I have realized that in case I start speaking the truth at this stage ....my hard earned money which is lying with some of these places is at risk.

My next post is going to be regarding the so called medical facilities that these places claim to provide and what are really in place.

See you guys soon!!

Non-Refundable Deposits...fact or myth?

Many retirement homes who are working on the deposit model, have a  component of the deposit that is defined as "non-refundable" This is a myth!  Let us examine the reason why?

Deposit as defined in any dictionary is an amount that is placed as a security to ensure the performance or non-performance of an act or deed. It cannot be just a stand-alone deposit without any qualification. Remember interpretation of law is always based on the English interpretation of the words used.

Many such schemes have altered the wording to call in an "non-refundable admission fee" or an "non-refundable access charge" or something to that effect. However many others, in their arrogance or ignorance still persist with the old stand-alone definition.

These deposits can be recovered if there is a strong enough movement to do so. One case filed in court may be all that is necessary to trigger this movement. I will do so soon. Let us see what happens.

Any comments or views in contrary to mine are most welcome. It will help me build my defense!!

DON

More about retirement home models....

For the purpose of this blog all old age or retirement homes shall be referred to as retirement homes.

These are for three basic types. In this classification one is talking of private retirement homes and not those that are managed by the government.

The three types are:

1. Outright purchase. 
2. Deposit model.
3. Monthly charge model 

The outright purchase model  is the one which was originally conceived by Paranjape Builders of Pune. Here the unit can be purchased by anyone, but to occupy the same one has to be 55+ to occupy the same. The advantage is that one owns the property and the same appreciates with time. The monthly maintenance is usually taken up front as a non-refundable interest free deposit. Being an owner one is free to do what one wants without any rules and regulations, other than the usual ones for an Association. The management is usually with an elected body of owners. The builder may provide infrastructural support. Unfortunately these schemes are falling by the wayside, with units remaining empty or being occupied by tenants.

The disadvantage is a high capital cost and the capital is locked in. This may not be a suitable scenario for a senior citizen. The Reverse Mortgage Scheme is possible, but the returns are not commiserate with the cost and risk.

The deposit model has a lower "capital cost" since the deposit is lower than the outright purchase cost. However there are rules for "lock-in" of the refund and in many cases there is a "non-refundable deposit" . This is a way to ensure that the turnover is low since people are scared of losing the non-refundable part. Why this is a myth I will deal with later. Basically they offer good service and since they have a deposit they can raise the charges as and when they want without any compunction since very few will challenge them. They sign contracts which they violate without any shame or fear. This is because these contract do not fall under the Consumer Act as they seldom have a deficiency of service. One can challenge them legally, but the legal process will take years. These projects rely on the fact that the average age is 70+ and then people do not want the hassles. However one hopes that this blog will help to highlight these issues and bring them into the public eye.

The last model is the monthly subscription model.  This seems to be the fairest model since there is no substantial deposit or capital investment. However there is a hidden factor. Since there is no contract or legal binding, the management of these units can exercise a dictatorial regime regarding the costs and facilities.

I have proof for all the statements made above  and  can make them available to anyone who is interested.

Until later, wish all my followers a Happy Diwali and a Profitable New Year.

DON

This will be a comprehensive site for information for senior citizens who are looking for retirement or old age homes.

It will reflect the result of personal experiences as well as information gleaned from other sources.

Disclaimer: All information is true to the best of my knowledge.