As more Australians reach retirement age many are considering retirement village living. Buying into a retirement village requires specialized advice, there is much to consider before making such an important life changing decision. Many of these considerations are different compared to buying a residential property.
In recent times many people have signed retirement living contracts that are blatantly in favour of the retirement village operator.
Excessively high exit fees have been a major factor that has left residents with very little. Retirement village operators spend much time and money on persuasive marketing which has lured people into signing on the dotted line without proper due diligence.
If you are considering retirement village living my experience and skill set as an independent property consultant will be of benefit. I will examine all the real estate related matters that are unique to retirement village living.
It is also highly recommended you also engage a lawyer who specialises in examining retirement living contracts. Retirement village contracts are not the same as ordinary residential property contracts.
Below are some of the important aspects you should be examining before signing on the dotted line.
- Make sure you understand all the costs, moving in, living in and especially exit fees.
- What is the village’s policy on pets, visitors and car parking?
- How far is the nearest tram, bus stop or train station? Does the village have a minibus?
- What are the qualifications of medical staff who are both on-site and off-site.
- What is the nature of the tenure you are buying? i.e., freehold or strata title, lease, license, company title, rental agreement.
- What has been the capital growth performance of these properties and how is it allocated on exit.
- When a sale takes place can you choose your own real estate agent?
- What features are most important to you, and do you have to pay for features you don’t use?
- What is the security setup? What happens in an emergency including response times.
For a small fee you can download the entire Buying into a Retirement Village checklist by going to Your Property Checklists
