KEY TAKE OUTS:
- Understanding what a retirement village is
- Understanding the buying process for purchasing a property in a retirement village
- The Pro’s and Con’s of living in a retirement village
As people approach retirement, they often begin considering their living arrangements for the future. Many opt for retirement villages, which offer a range of benefits, including independent living with a sense of community, security, and amenities tailored to seniors’ needs. But purchasing a property in a retirement village involves different considerations than buying a standard home or apartment. Here’s a guide to help you navigate the process and make an informed decision.
What is a Retirement Village?
A retirement village is a community designed for older adults who are typically over the age of 55 or 60. These villages offer a range of housing options, from independent living units to more supportive environments for those who may need assisted living or aged care services. They often feature amenities such as communal dining areas, fitness centres, gardens, and social spaces.
Retirement villages are generally aimed at seniors looking for a low-maintenance lifestyle with access to health and social services. Many of these communities are located in tranquil or scenic areas, creating an environment conducive to a relaxed and comfortable retirement.
The Buying Process
Purchasing a property in a retirement village can be quite different from buying traditional real estate. The exact process and terms can vary depending on the country, state, and individual village policies, but there are a few common features to understand.
- Types of Agreements
In most cases, when you purchase a property in a retirement village, you’re not buying the property outright in the same way as traditional real estate. Instead, you’ll typically enter into one of the following types of agreements:
- Leasehold: You lease the property for a certain number of years, often 99 years or longer. While you have the right to live in the property, you do not own the land. When the lease ends, the property will typically revert to the retirement village management.
- Strata Title or Ownership: This is similar to owning a regular home or apartment, where you own the unit outright, but you may also be responsible for upkeep of communal areas through a strata body or management fee.
- License to Occupy: This is another common arrangement where you do not own the property but have the right to occupy it for life, or until you choose to move. The management company usually retains ownership, and you pay for the use of the property.
It’s essential to fully understand the terms of the agreement, including any restrictions on selling or subletting the property, and what happens if you decide to leave.
- Costs Involved
Purchasing a property in a retirement village comes with a set of costs, which may include:
- Entry Fees: These can be significant upfront costs that cover the right to live in the community, and sometimes, they are non-refundable. These fees may vary widely depending on the location and amenities offered by the village.
- Ongoing Fees: Retirement villages often charge monthly or quarterly fees to cover maintenance, gardening, and communal services. These fees can fluctuate, so it’s important to factor them into your long-term budget.
- Exit Fees: When you leave the retirement village, you may need to pay an exit fee. This fee is often a percentage of the sale price or the entry fee and can be quite substantial. It’s crucial to understand how the exit fee works before signing a contract.
- Additional Costs: You might also be responsible for the costs of extra services such as healthcare, maintenance, and personal care, depending on the level of support you require.
- Location, Location, Location
Just like purchasing a traditional property, location is key. Many retirement villages are located in quieter areas, but proximity to key services such as hospitals, shopping centres, and transport links is crucial.
Consider whether you want a village near the coast for a peaceful, beachside lifestyle, or one closer to urban amenities. Think about how often you expect to travel, whether you want access to outdoor activities, or whether you prefer a smaller, more intimate setting.
- Assess the Amenities and Services
Retirement villages often offer a variety of amenities and services designed to enhance your lifestyle, but these can vary widely depending on the village. Some common features to look for include:
- Healthcare Services: Most retirement villages offer access to basic healthcare, such as physiotherapy, home care services, and emergency medical support. More extensive medical care options may be available in some villages for those who need additional assistance.
- Social and Recreational Activities: One of the most attractive features of retirement villages is the sense of community. Many villages offer a full calendar of activities, from fitness classes to arts and crafts workshops, to encourage social interaction and keep residents engaged.
- Dining and Meal Options: Some retirement villages offer fully equipped kitchens within each unit, while others provide communal dining rooms or on-site cafes. You’ll want to understand what dining options are available and how they align with your lifestyle.
- Security: Retirement villages generally offer higher security, such as gated entry, surveillance cameras, and sometimes even on-site staff. This is an important consideration if you want peace of mind, knowing that help is available if needed.
- Level of Care Required
Another key factor to consider is the level of care you or your loved one might need in the future. Some villages offer a “continuum of care,” meaning they provide a range of services from independent living to assisted living and even nursing care.
If you’re not yet in need of high levels of care but anticipate that you may require them later, look for a village that can accommodate this transition. This flexibility can save you the hassle of having to move again later on.
Pros and Cons of Retirement Village Living
Pros:
- Low Maintenance: No more worrying about property upkeep, such as mowing the lawn or fixing plumbing issues.
- Community and Social Opportunities: Opportunities for engagement with like-minded peers and a variety of activities to maintain an active social life.
- Access to Healthcare: Many villages have healthcare services, making it easier to stay well as you age.
- Security: Retirement villages typically offer a higher level of security than typical residential neighbourhoods.
Cons:
- Cost: Initial and ongoing fees can be quite high, and the financial arrangement may not be ideal for everyone.
- Limited Ownership: Depending on the type of agreement, you may not have full ownership or control over the property.
- Exit Fees: These can be significant when leaving the community, which may reduce the financial benefit of living there.
- Lifestyle Restrictions: Some retirement villages have strict rules and regulations about what you can and cannot do, which may limit personal freedom.
Final Thoughts
Purchasing in a retirement village can offer many benefits, but it’s important to approach the decision carefully. Make sure you understand the terms of the agreement, the costs involved, and the level of care you may need in the future. Research different villages, ask questions, and seek advice from financial planners or legal professionals to ensure that the choice aligns with your needs and financial situation. Ultimately, the goal is to find a place where you can enjoy your retirement with peace of mind, security, and a fulfilling lifestyle.
ABOUT CHRISTINE BASSETT:

Christine is a Licensed Conveyancer and Justice of the Peace at Coutts’ Narellan office. Since joining Coutts Lawyers & Conveyancers in 2013, Christine quickly immersed her interest in the property and has since completed studies of Conveyancing Law and Practice at Macquarie University; and is accredited with the Australian Institute of Conveyancers NSW.
For further information please don’t hesitate to contact:
Christine Bassett
Licensed Conveyancer & JP
info@couttslegal.com.au
1300 268 887
Contact Coutts today.
This blog is merely general and non specific information on the subject matter and is not and should not be considered or relied on as legal advice. Coutts is not responsible for any cost, expense, loss or liability whatsoever in relation to this blog, including all or any reliance on this blog or use or application of this blog by you.