Moving into a retirement village is a big step to make, whether you are making it with your partner or by yourself, there is a lot to consider before you make your final decision. It is important that you understand how a retirement village work, and everything that will change when you go from living where you are now, to living in the retirement village.
It is important to get some aged care financial advice as well, because this move will have an impact on you financially, and you need to ensure this is actually a feasible option. If this is something that you are considering over the next couple of years, then it is important that you do your research and understand the process in its entirety.
So, have a read on below to find out more about the things you should consider before moving into a retirement village:
Experience of Existing Residents
It is always a good idea to find out how existing residents of the retirement village feel about the place they live in. A retirement village is very different from a nursing home, you still have your own home and independence, but you are now surrounded by more like-minded people, as well as most likely downsizing your home to something more manageable, as you enter your twilight years.
A retirement village can also offer increased security, not just for you personally but also for your home and the things inside of it. Most retirement villages should offer more information about how the residents feel. Things to look for are the satisfaction rates, whether or not the residents think they made the right decision, things like that.
Purchasing a Home in a Retirement Village
As was touched on in the introduction, moving into a retirement village is a big change financially, and it is important to get some personalised aged care financial advice, so you have a clearer idea of what you will have the ability to afford.
Generally, there are a lot of different financial options when it comes to moving into a retirement village. So, you should look at all the different options to find the one that suits you (and your partner). Not only will you find that you have to pay to move into the village, but you will also have to pay for ongoing charges, to cover things like maintenance and other general services.
Payment Models
There are generally three different payment models available to those who are considering moving into a retirement village in Australia; loan/licence, leasehold, and freehold title. All have slightly different terms and fee structures that need to be carefully considered.
The load or license option is one of the most common in Australia and it makes up for more than half of the retirement village arrangements. The type of fees you would typically have to pay for with this payment model include; an entry contribution, an exit fee and ongoing costs (like for maintenance for example). This payment model offers less security than the others as your licence agreement is not officially registered with the Land Title Offices.
Another payment model option is the leasehold, which makes up for around one third of retirement village arrangements. In this model, you pay a lump sum and in exchange you get a long term lease to live in and your lease is registered with the Land Title Offices.
The third most common payment model is the freehold title option. This is where the residents have complete ownership of their home in the retirement village. This payment option is not as common as the others, and makes up for around 10% of the total retirement village arrangement in Australia.