What do you look for when choosing the retirement village that is right for you?
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Just ask Christina Savides, the village manager of Macquarie Lodge Retirement Village in Arncliffe which is operated by The Salvation Army Aged Care.
"Look for one that is close to what you love, for example, your favourite social spots, health services and where your closest family and friends live," she said.
"Think about what keeps you buzzing and see if the village offers these. Have a chat with the residents in the retirement village, as it's the best way to gain a true understanding of life there.
"Don't hesitate to make several visits to your shortlisted villages to compare facilities, services and activities."
She said every retirement village has its unique features and finding the right fit is crucial.
It's important to consider future care needs, even though it might be uncomfortable to think about now.
Financial considerations include understanding entry costs, ongoing fees for services and maintenance and exit fees when leaving the village, as well as any additional charges that may apply for extra services.
Remember to ask about all the potential fees, the process for fee increases and the financial arrangement for any care services needed.
Buying into a retirement village is more than a lifestyle decision; it's also a major financial one.
A retirement village can include accommodation in rooms, apartments, units or homes. You can either rent or buy the property.
Choice decisions
If buying into a retirement village, consumer advocacy group Choice explains what to look for, including types of contracts offered, entry and ongoing costs, potential exit fees and conditions and future care.
Should you decide to move to a village, state laws give you some limited protection.
But you will need to look beyond the sales pitch and go through the contracts carefully to fully understand the financial implications.
Choice says the main types of contracts are:
- Strata title, where you pay an agreed amount to a former resident or the operator, and then own the unit. You usually also need to enter into a service agreement with the operator.
- Loan and licence may be offered by non-profit organisations such as churches. You usually pay a contribution in the form of an interest-free loan.
- Leasehold, where the lease is usually registered on the title deed, which protects you if the village is sold. You pay a lump sum for the leasehold.
Entry, ongoing and exit fees can apply to all.
In some states, you have a 90-day settling-in period during which you can move out and pay only market rent and some costs. But depending on the terms of the contract, you may only get your entry fee back once your unit is resold.
Ongoing costs cover any services provided, maintenance and a management fee for the village owner.
Exit fees - also known as deferred management fees - can be complicated and may include one-off and/or annual charges over a specific period of time.
Examine your capital gain entitlement carefully as you may only get part back or none at all.
Therese Murray
Wordsmith. Senior journalist. Editor. I have a proven track record in helping people and communities solve their problems. My career is all about telling stories.
Wordsmith. Senior journalist. Editor. I have a proven track record in helping people and communities solve their problems. My career is all about telling stories.
