Hello, we are a mature couple renting for a couple of years as moved to Perth to live 2 years ago.
Does anyone know anything about Over 55s Villa Living? Like how it works financially. Our intention is to buy but perhaps the villa style in Retirement Living villages. Don't want apartment living. Due to chronic illness, we need very low maintenance. The house prices here have skyrocketed. My husband is only home every 2nd week.
Many thanks for your help.
Does anyone know anything about Over 55s Villa Living? Like how it works financially. Our intention is to buy but perhaps the villa style in Retirement Living villages.
Maybe drop in and have a chat to them, they'll share all the details with you
The house prices here have skyrocketed.
Its not just a Perth thing
My husband is only home every 2nd week.
ok
Hopefully you don’t have a pube of a son who’s more concerned about his inheritance than your wellbeing!
you don't have to leave it to them
Most RL villages have a minimum age of over 65 and a requirement to be fully retired. You might find some exceptions to this, but be prepared to pay through the roof. RL villages make their money based on turnover so the younger, the less desirable a consumer is. Good luck
um no plenty are over 55 and can still be working
Um read my post…..due to illness
RL villages have a minimum age of over 65 and a requirement to be fully retired.
I'm not sure what property offering you are thinking of but any retirement villages I've researched have been over-55 and no requirement to be retired.
Possibly you are referring to government funded/subsidised residential care?
No I'm referring to RL villages - I've worked in the sector.
Yes, they are available at over 55, but most won't even consider people that young for the reasons I stated above - it's not profitable for the provider
Usually you are buying the dwelling while the estate retains ownership of the land. On top of purchase price you pay rent on the land (like a fee to occupy). You cannot take out a mortgage to purchase, due to not owning the land.
The big twist is usually when you need to sell. Make sure you get independent legal advice re the terms of future sale, as some resorts will retain part of the sale proceeds. Some retain the right to be the selling agent, but will actively push their own new stock before trying to sell yours. Also be aware that they can be difficult to sell as there is quite a narrow market of people who are of the right age, cashed-up and wanting to live where you are selling.
Avoid all those places where you only buy a "lease". Originally, the idea was that they would be much cheaper than full buying, but that did not work out. It just meant massive profits for the developers and managers.
Insist on a strata title retirement village, where you actually own something. This is the keyword.
https://www.realestate.com.au/buy/property-retire/list-1?key…
Indeed and have a solicitor read the contract and explain the financial conditions.
eg: who can sell the property and who determines what price the property can be sold at. My Sister's MIL's strata unit could only be sold through the managing companies RE Agent at a price set by the managing company (which kept prices high). In the meantime my Sister/BIL had to continue to pay the strata fees. It took 18 months to sell the place.
Insist on a strata title retirement village, where you actually own something.
That can be important but the most important thing is
Indeed and have a solicitor read the contract and explain the financial conditions.
Just because it's a strata scheme where you own the property doesn't necessarily mean it will be more financially beneficial.
You can still be required to pay
a quarterly strata levy which covers building insurance and the maintenance of common areas such as gardens and swimming pools. In New South Wales it also covers the exterior maintenance of your unit; however in Queensland, this is covered by the owner. This levy is subject to inflation and is at the discretion of the body corporate.
Also
You’ll pay regular service charges to cover village services like the emergency call system, restaurant and activitieswell as regular service charges to cover village services like the emergency call system, restaurant and activities.
and don't overlook the
Deferred payment fee
Like the majority of retirement village operators, RetireAustralia retains a portion of the funds from the sale of your home as a deferred payment fee. This deferred payment fee covers large-scale village improvements and RetireAustralia’s investment.
The deferred payment fee will not exceed 37.5% of the resale value in our strata title villages in New South Wales and 35% of the resale value in Queensland. This is charged and deducted from the gross sale proceeds.
(All quoted from Belrose Country Club Retirement Village which was the first property listed in the link from @bargaino
Check out the recent Four Corners ep. It described several of the pitfalls of this sort of living.
Be extremely careful. This is a financial decision that has long-lasting repercussions. Personally, I don't understand why anyone would sign up for a retirement village or park home in WA. It's similar to renting yet you're basically paying homeowner prices. It's like living in a caravan park but paying a premium for it.
Far better to buy a "survey strata" unit where you own the actual building AND the land it sits on. These are usually freestanding units such as 3 units one behind the other on a block. You'll only have a small backyard to maintain & won't have strata meetings because all you have to do as a group is insure the communal area which is usually just a driveway covered by an easement.
Read the govt guide on how strata title works in WA to see if it suits you. https://www.landgate.wa.gov.au/strata-and-community-titles/s…
Can't really help as to exact places …
but certainly, do your due diligence before jumping into this (+ see financial advisor).
There are also different types of financial deals/packages they offer.
So maybe check out afew places + set up an appt … get more info - then speak to your financial advisor.
My parents in VIC - moved into a retirement village maybe 6 years ago…
unsure of the specifics of legal/financial terms … but parents paid something like $900,000 upfront (+ ongoing monthly fees roughly $1,800/month) … and are locked in for certain number of years (I remember them saying something like - they'd need to live there for atleast 7 years to make money back - if pulled out earlier, there were huge early release fees).
With my parents, Retirement village owns the land + has certain rights … eg. parents can't do any renovations to house (even getting slip rails installed in shower) without village approval … even things down to trees - parents have a big tree out front, with roots pulling up paving to front door (trip hazard) … had to take it to village committee - and even then they knocked it back as to removing tree (would affect the overall streetscape appeal of village).
Villages also have their own hierarchy/committee … what I mean is - parents live next door to chairman of village committee … and there is just so much nitpicking (far more than the everyday FB fights you see in general suburbs/estates).