If you are approaching the age of around 60 you are probably in the midst of planning your retirement. One of the big decisions to make is where you will live. There are many options depending on what your lifestyle and finances will allow, but many people will consider moving to a retirement village. If you are looking at moving to a retirement village here is a list of the top 10 things you need to know before you make the final decision.
What is a retirement village?
A retirement village is a community that is for people who are around 60 years of age and over. The community contains a range of accommodation and usually provides further facilities to cater to your lifestyle.
What do I receive as a resident in a retirement village?
Retirement Villages are maintained by the village which gives you more time to actually enjoy your retirement! Most retirement villages also provide a 24 hour emergency assistance. Finally there are usually a number of facilities provided within the village, such as pools, tennis courts, bowling greens as well as third party services such as hairdressers and doctors.
Do I buy into a retirement village?
There are many different types of retirement villages, some of the most popular being either a leasehold or a loan and licence agreement. Regardless of the type of scheme, you will be required to contribute an “ingoing contribution” which is an amount of money that is required to be paid upon entering into a retirement village. This amount is set based on size of unit, size of village, etc.
Can I sell my retirement village unit?
All retirement villages will allow you to be able to “sell” your unit, however most require an “outgoing contribution” which is an amount of money that you are required to pay to the village upon exiting the village. Again, this amount depends upon the retirement village itself and varies from village to village.
Am I entitled to any capital gain?
This is important to check when entering into a retirement village as this varies from village to village. There are villages that do not entitle you to any profit made from the “sale” of your unit, so this is something to be aware of.
Who is responsible for any capital loss?
Again this varies from village to village, however with most villages you will be responsible for any capital loss, regardless of whether you are entitled to any capital gain.
Do I have to pay fees to live in a retirement village?
As retirement villages provide you with services and facilities, all villages have a maintenance fee or lease fee or recurrent charge, which is payable. The amount is usually set annually and is set based on the cost of maintaining the village as a whole.
Do I own my retirement village unit?
Generally speaking you don’t “own” your unit, however you are entitled to the sole use of your unit and have rights and protection under the retirement village legislation.
Are there rules associated with living in a retirement village?
Yes, all villages have rules that you need to abide by in a retirement village. These rules will cover things like whether pets are allowed within the village and whether other people are able to reside at your unit with you. You need to have read and be happy with the village rules before entering into the retirement village.
Who looks after the retirement village?
Retirement villages are maintained by the Village Manager. Some villages also have committees that residents are able to join to be able to have your say within the village to ensure that the resident’s needs are being met by the retirement village.
Retirement Villages in the Macarthur
There are many retirement villages around the Macarthur Area and their contracts will vary. That is why it is important to seek legal advice from a licensed Conveyancer to go through the contract with you and help you to understand what you are entering into.
If you would like advice on your retirement village contract and need a Conveyancer to act on the purchase. Please contact Carina Novek, Conveyancing Manager at Coutts Lawyers & Conveyancers. Your initial consultation is free.