Tower Property Assists Family with Securing RAD Payment for Aged Care Transition

One of the most critical factors when making the transition into residential aged care, is funding the Refundable Accommodation Deposit (RAD), which often requires the sale of the family home. Tower Property recently managed the sale of a unit in Clayton South VIC for just this reason.

Time was of the essence for the owner, as they had already moved into aged care. The aged care residence needed the RAD payment to be made as soon as possible and the cost of the Daily Accommodation Payment (DAP) was quickly adding up for the family.

“The challenges in selling the property as a matter of urgency were formidable,” said Phil Hoopman, Senior Property Manager with Tower. The unit had been left untouched, with almost 30 years’ worth of belongings to sort through. A few personal items had already been taken with the owner into aged care - everything else was left behind.

 In addition to clearing out the remaining items, another important decision needed to be made – to sell the property as-is or to renovate to maximise the net outcome. Tower Property estimated that approximately $50,000 would be needed to return the unit to a high standard.

Tower Property analysed the local market and considered the time and associated costs and in consultation with the owner decided that the best net outcome would be achieved by selling the property as-is.

Once this decision was made, Tower Property arranged for the sale of anything valuable, donated other items to charity and disposed of the rest. The unit received a thorough clean and some minor repairs were made. The unit was then professionally styled and furnished for sale.

“The transformation was remarkable,” said Phil. “Although the property was still obviously in need of work, it presented as a very liveable prospect for the first home buyer.”

The client bought Tower Property on board in mid-June and after five weeks of work, the property was ready for sale. Tower Property found the best agent to handle the sale and the marketing campaign was underway.

The unit sold at auction in mid-August, with Tower Property negotiating a 30 day settlement with the purchaser. This meant that the RAD payment could be made in mid-September – just three months after Tower Property began to assist.

The feedback from the client speaks for itself; “I feel the whole team did a wonderful job getting the unit sold. Phil, I appreciate your care, friendliness and most of all your professionalism in the way you handled the project”.

“Our aim is to make the sale process stress free for the vendor and their family, while getting on with the job of managing the sale” said Phil.

Find out more about Aged Care Real Estate Services.