Issues to Consider When Moving into a Retirement Village
Retirement villages are a more and more desirable option for people nowadays according to statistics: with over 2,200 retirement villages, there are more than 170,000 seniors living there.
The top three reasons for choosing a retirement village are to downsize while they still could (84%), their home was becoming too big to manage (62%) and concern about their future health (60%).
Whatever reason you have to choose a retirement village for your most probably last home, there are a couple of issues to consider before moving into one.
Your exit strategy.
This is the most painful issue for most residents. Very often it is very hard to sell your property in retirement villages and many people sell at a loss. To make sure that they can leave when they want to, many people choose to consult a lawyer and to ask them to go over the agreement they will be signing. Basically you need to know not only what it will cost you to get into the village, but to get out as well.
Can you afford it?
The price that you pay for your unit is just a part of the overall sum of the fees you will be paying. Retirement villages are a lifestyle and an investment choice that you need to make. You are getting the community and security of constant care but you pay fees on a weekly basis for maintenance and deferred management fee/accrued facilities fee. Make sure your income can cover all the fees, not just the initial investment.
Do you need to move to a retirement village?
Depending on your motivation to move to a retirement village, you can have many options. A person might think that the health care in a retirement village will be near hospital level but this is often not true. People make a smart move when they explore all the options and inform themselves on all the conditions in a retirement village. Assuming something because you heard so doesn’t do you any good. Basically – do your homework, and have the right motivation.
One of the most important legal issues to consider is the way to own property in the retirement village.
You have two basic options:
– unit title where you own the property but are still subject to numerous regulations (that a good retirement village lawyer can clear up for you)
– occupation license is the right to use the property and all the facilities in the village for a fee
Retirement village rules and regulations.
Retirement villages are highly regulated communities. People who prepare well and inform themselves on all the rules and regulations (as well as rights) tend to have fewer disappointments once they move. Rules and regulations may vary greatly and might not suit everyone – retirement villages are great but there is not one size that fits all.
We all want peaceful and enjoyable retirement. The earlier you arrange all the details, the better you will feel when the time comes to move. The issues to consider when moving into a retirement village are not unimportant. Many people choose to consult an experienced retirement village lawyer before taking any important decisions and this brings them peace of mind and security.
Retirement villages are the choice of more and more Australians every day, but will they be yours?
If you or your loved ones need assistance in taking the right decision, we would be happy to help. Just contact us here.