When we spoke to Peter McMullen from real estate services firm Jones Lang LaSalle in 2014, he told us entry fees for a two-bedroom unit in a retirement village could range from $200,000 to $400,000 in less affluent areas, to between $1 million and $2 million in very affluent areas of Sydney. There are large variations in entry fees for retirement villages, depending on factors including location, facilities, the age and condition of the unit, and other fees to be paid. Tip: Alternatively, look out for retirement villages with a rental agreement, which will usually only charge rent and none of the other fees. You pay a lump sum for the leasehold.Įntry, ongoing and exit fees can apply to all three contract types. Leasehold, where the lease is usually registered on the title deed, which protects you if the village is sold.You usually pay a contribution in the form of an interest-free loan. Loan and licence may be offered by nonprofit organisations such as churches.You usually also need to enter into a service agreement with the operator. Strata title, where you pay an agreed amount to a former resident or the operator, and then own the unit.The main types of contract arrangements are: The hidden costs of retirement village contracts Pay particular attention to the following five issues. But you'll still need to look beyond the sales pitch and go through the contracts carefully to fully understand the financial implications. Should you decide to move to a retirement village, state laws give you some limited protection. We have a wonderful manager and an active social committee." "The people are extremely friendly and there is a tremendous spirit. "It feels as though we live in a resort," she says. So what's the appeal of a retirement village? Residents such as Merryl often mention the lifestyle and community spirit as one of the reasons they enjoy living in their village. If things don't work out, extremely high exit fees might leave you without enough money to seek alternative or more suitable accommodation. Moving to a retirement village is not only a lifestyle decision, it's also a major financial one. Find out more about fact-checking at CHOICE. Checked for accuracy by our qualified fact-checkers and verifiers.
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