Slump hinders flourishing retirement living industry

The ageing population explosion is providing the opportunity for a flourishing retirement living industry but the property slump is hindering the chance to capitalise on the looming windfall.

Those wanting to enter retirement housing are hanging on the delicate threads of the property market, Retirement Village Associations (RVA) manager of the year award recipient Rosemary Westley said. Before the industry could reap the full benefit of the influx of demand as the baby boomers enter the golden years, the conditions of the property market needed to improve.

Mrs Westley said the “Catch 22” situation was apparent, citing about 30 potential residents trying to sell their homes to gain one of three current vacancies at MiLife Rosewood Park in Levin.

Mrs Westley said those who were struggling to sell their homes before they can make the move to retirement living were not seeking unreasonable house prices but had a lack of buyers.

MiLife has resource consent to build another 16 units. Waiting lists provided the confidence that business expansion would pay off but, with millions at stake, the timing of its completion would need to coincide with a market conducive to filling the villas quickly.

A change in psyche has seen painful inevitability give way to enthusiasm for retirement living, no longer carrying the perceptions of  dormant hospitals for the sick and frail but rather independent living for the fit, healthy and sociable, offering thriving hubs of activity for those aged from their 50s. Mrs Westley said another drawcard was the ability to relinquish the maintenance responsibilities of the home.

A growing market had created discerning buyers.

“Gone are the days of ‘they like it, they buy it.’ People will now look everywhere to get the best deal for their particular needs,” Mrs Westley said.

Levin has plenty of competition, with seven other retirement villages catering for the 20% of the population over 65 – considerably higher than the national average.

Rosewood Park set itself apart in the market by being the most affordable and not having rest home and hospital facilities like some of the competitors.

“They don’t feel as if it’s a step toward the grave coming here – it’s a lifestyle.”

The 10-year-old boutique village with 36 one- or two-bedroom villas was sold three years ago to MiLife Holdings, with directors David Tyler and Stephen Tindall running a right to occupy model. MiLife Holdings also has retirement villages in Palmerston North and New Plymouth.

Because it is close to Levin’s community facilities, there is no need to provide additional amenities such as restaurants or tennis courts, but a communal lounge and spa provides camaraderie for the socialites. 

Mrs Westley insists the retirement market is a healthy one.

 “It’s a very good investment as long as you are willing to ride out the hard times, don’t overcapitalise, have a good budget and be proactive.

“It’s the way ahead, people aren’t getting younger.”

While Mrs Westley has worked hard at marketing and promoting the MiLife brand, the best advertising hasn’t cost a cent.

“If the residents feel the place is run well and looked after then it’s all word of mouth, that’s the best marketing tool.”

Manager of the Year

Rosemary Westley, the manager of Retirement Village MiLife Rosewood Park in Levin, has won the Retirement Village Association’s 2011 Manager of the Year award.

Contenders were nominated by residents and judged on their management.

Mrs Westley said passion for the job has bred success at what she does.

Judge Bronwen Wilkins said Mrs Westley showed a range of innovations and achievements and strong support from the residents and nominating committee members.

Retirement Village Association executive director John Collyns said the honour is the premier award for quality in the sector, recognising outstanding performance.

Over the past two years Mrs Westley and husband Paul have made many improvements to the village. As the only staff members the pair are jacks of all trades, taking on all roles from accountant to gardener.

A business-orientated family taught  Mrs Westley the fundamentals of successful business and she has fostered her own principles over her career. One of the best learning experiences came from previously taking a job at a poorly run rest home.

“Surroundings, quality time spent with residents and kindness are important,” she said.

Emphasis on the hospitable and personable side of the business is not a unique feature of what the burgeoning retirement market players pride themselves on but it’s where Mrs Westley shined – an attribute she said has a direct co-relation with profitability. The award finalists represented their business savy with proven track records of adhering to budgets and holding up to the scrutiny of rigorous health quality audits. 

Judges acknowledged Mrs Westley’s range of innovations and achievements and strong support from the residents and nominating committee members.