Not everyone likes the idea of living in a retirement village, but for some people a retirement village provides support, security and companionship.
Retirement Villages sell residents a “licence to occupy” a unit in the complex. You don’t own the unit outright. You own a licence to occupy the unit for your lifetime or until you are no longer able to safely occupy the unit.
Retirement Village Expenses
As well as paying for the licence to occupy, residents also pay a weekly fee that covers maintenance and services for the village, such as rubbish collection, grounds and building maintenance, and sometimes electricity. If a resident requires nursing support, meals or help with showering, there are additional costs for these services.
Purchasing a licence to occupy a unit in a retirement village is not an “investment”. Residents do not benefit from capital gains and they pay around 20-30% of the purchase price of their occupation licence to the retirement village when they leave. It is important to understand what these costs will be before signing on the dotted line.
Retirement Village Checklist
When deciding whether a retirement village is suitable for you, consider:
- The location of the village;
- The size and location of the unit or apartment;
- The cost to purchase the unit and additional costs when you leave. Are these negotiable?
- What are the ongoing costs?
- The support services provided by the village – help with everyday activities such as showering and cleaning, social activities, meals;
- If you or your partner needs a higher level of care in the future (eg rest home level care and dementia care), can it be provided on site?
- The minimum age for residents. A younger minimum age can result in a more diverse community;
- Will there be ongoing disruption to residents if the village is still under construction?
- Does the village have a swimming pool, bowling green, tennis courts, communal spaces, a café?
- Can you take your pet with you?
Get Legal Advice First
Retirement Villages are controlled by the Retirement Villages Act 2003 and the Retirement Villages Code of Practice 2008. This legislation requires that all prospective residents be independently advised by their lawyer prior to signing the occupation agreement. We can assist you with this. If you are looking at a move to a retirement village come and talk to us first. Contact Godfreys Law today on 03 366 7469.
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