Over­charg­ing the el­derly

Weekend Argus (Saturday Edition) - - COMMENT -

NEL­SON Man­dela’s long-drawn-out fi­nal ill­ness em­pha­sised how vul­ner­a­ble the el­derly can be.

At a re­tire­ment com­plex I know, res­i­dents pay a monthly levy, plus an exit levy – a pro­por­tion of their profit when they sell their homes. When prop­erty prices es­ca­lated about 10 years ago, this meant the exit levy would also in­crease. Out of fair­ness, one might have ex­pected a re­duc­tion in the monthly levies to com­pen­sate for the much higher exit levy. In­stead, they con­tin­ued in­creas­ing the monthly levies, and at fast rate.

The com­plex dis­misses ob­jec­tions, ar­gu­ing that peo­ple signed the con­tract when they bought into the com­plex.

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