For my clients in their early 80's this particular offering was...

For my clients in their early 80's this particular offering was merely just a group of units by the sea, no gym, no pool, nothing really other than being surrounded by a group of others their own age. I quizzed them on why they wanted to join and mainly for lifestyle purposes and potential friendships.

The no maintenance etc they offer is on par to what you would expect in a private rental market albeit slightly more in the favour of the tenant. So that offers little value in my opinion. 

The way I explained it to them was that they were pre-paying rent for the use of this property (Future rent = Exit fee + Annual fee).

If they live there a long time this presents some value however if they are forced into a nursing home it was a really bad deal. So for people moving into a village in good health in their early 70's it might be ok, but for these guys in their early 80's not so good.

Put your investor hat on and compare an AVEO contract to either

A) Investing the entry fee + renting a comparable unit elsewhere + $5000+/- per annum to Jim's Mowing

or

B) Purchasing a Unit in a similar block freehold and paying $5,000+/- to Jims Mowing/strata fees.

Even if you funded Jim's Mowing, Meals on wheels, a Domestic cleaner etc by a horrible reverse mortgage you'd be miles in front rather than entering into one of these homes.

My prediction is that if a RC was to be made into these type of offerings you'd see the business model shift to that of a nursing home and the profitability would drop.