The business of retirement - part one

Despite hundreds of millions of dollars of investment into retirement villages in Queenstown Lakes, many older, long-time residents “face eviction from this district” because there’s nowhere affordable and suitable for them to live, Queenstown Lakes Community Housing Trust CEO Julie Scott says.

The trust now has close to 50 senior households on its waiting list district-wide, amid a rapidly growing age demographic of 65-plus baby boomers, hitting retirement age. “Many have been living and working in this district, most, or all, of their lives, and contributing as key members of this community,” Scott says.

Often unfortunate circumstances have found them with no home of their own at this stage of their life, due to things like marriage break-ups forcing a family home to be sold. They’re 65 and surviving only on superannuation. “There are plenty in that situation.” Superannuation doesn’t stack up with the market rental for a 1-bedroom unit here mostly ranging from $550 to $600-plus a week.”

The Queenstown Lakes District Council has nine elderly housing units – four in Arrowtown and five in Wanaka and starts community consultation this month about plans to have the trust own and manage those. “Acting as a landlord to vulnerable members of the community is what we do,” Scott says. That’s our wheelhouse.” As a registered community housing provider, the trust can also access an Income Related Rent Subsidy from Central Government which councils can’t.

Holiday cribs in the Frankton and Lakeview Camping Grounds used to serve as “unofficial” social housing for those on lower incomes, many occupied by long-term elderly residents, but those sites have been developed.

The trust’s 68-lot Tewa Banks Arrowtown development is underway with the first 15-unit stage under construction, opening in spring – 15 in that development are going into social housing under contract to the government. Six have been allocated to local seniors already, with many more seniors on the waiting list.

The trust’s 50 one and two-bedroom Toru Apartments at Remarkables Park have been so successful that its keen to see the remaining 140 units, already consented, built, potentially creating more seniors social housing, Scott says “But at the moment the cost of high-density construction doesn’t stack up so we are advocating to the government to help with funding to get these units built and into our various housing programmes.”

Housing Minister Chris Bishop has seen what a success is.

“We’re now waiting on policy direction as to how the government might support this,” Scott says. “We’re not seeking to bring more elderly into the district to house. We just want to house those who are already here.”

Scott would love to see a private developer build a complex similar to one in Douglas Street – compact units, specifically for downsizing older folk. More of these would free up houses locally for families, as asset-rich elderly could sell up their larger homes and buy into these.

Wakatipu Senior Citizens president and Abbeyfield New Zealand chair Simon Hayes says many local seniors can’t afford the entry fee into one of the new retirement homes and some still opt for the cheaper out of town options.

“A well-qualified researcher told me recently that they’re predicting that just over 20% of our senior population is likely to be able to afford to go to a retirement village,” he says. “For 75% that’s not an option unless they own their own home here.” If renting, it’s impossible to afford to live here if they’re paying all their superannuation in rent.”

Abbeyfield is only a “tiny slice of the housing solution”. The ‘flatting for the elderly’ concept has been highly successful in Queenstown, housing 12 to 14 seniors and costing about $4m to build.

They operate on fine margins and Abbeyfield Wakatipu had land support from the district council.

A steering committee in Wānaka is currently trying to find land and funding for a similar project there. “If they could get a capital grant of just $2m they’d be underway in the next year,” Hayes says.

The average Abbeyfield resident ends up in the government care home system three or four years later which he says is a big saving to the government. He’s aware of several Central Otago groups looking to kickstart Abbeyfield projects.

In his 40 years in Queenstown, Hayes has seen many elderly having to move away from the district to the likes of Clyde, Cromwell or Alexandra, as it was cheaper.

While the local retirement villages are wonderful and have been well received not everyone has close to $1m up front to get into one.

“If we want our older residents to continue to live here, which they should be able to do, then we need an innovative solution - council, government, religious organisations, benevolent friends, all working together,” he says.

“There’s some real concern out there,” he says. “We need more elderly housing, or the alternative is that our older residents who can’t afford to stay will have to go where rents are more affordable on a fixed income like superannuation.”

Abbeyfield Wānaka steering committee chairperson Stephanie Fieldsend says they’re meeting regularly and hoping that somebody will front up with some land so that they can proceed. “We’re trying to model it on the Queenstown Abbeyfield which is perfect,” she says. “There’s definitely a need for it. I think the Housing Trust already have 26 to 28 seniors who would fit that profile.”

• In part two of The business of retirement we'll look at the options for wealthy retirees in Queenstown Lakes.