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
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 and "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
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
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
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 Area
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.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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