Retirement Villages.

[Ausfree]

Now that I am in my seventies, the bride and I are thinking of downsizing and moving into a retirement village while we are still able to move about reasonably actively. Anybody here had any experience with these types of over 55's villages. The appears to be two types, one is called "Retirement Village" where you buy into a unit and rent the ground it stands on, big killer here is the "Deferred Management Fee" which can reach as high as 30% of the value of the unit when you eventually move out...........(I guess I mean fall off your twig).

The other type is called "Land Lease" whereby you again buy the unit and rent the ground it stands on. These LLC types are usually advertised as "Lifestyle" parks and they have relocatable homes on them as opposed to brick units in "Retirement Villages". However, they do not have those dreaded "Exit Fees", which I guess is good news for whoever inherits my estate.

The federal government made the right noises on budget night when they said that any money left over after you sell you current house and buy a unit in these villages could be transferred to your superannuation without penalty.


Anyrate we are in no rush (its only a thought at the moment) and I was wondering if anybody out there in AULROLAND has had any experiences with these types of villages.[bigsmile1]


ps. It's a big move and one that can't be undone once we commit.

[DiscoMick]

Do you have security of tenure? What does it cost annually? Can you sell on the open market or only to the property owner? Can the property owner evict the tenant without compensation?
'It's public housing or my car': Longriver and the caravan park residents facing homelessness

'It's public housing or my car': Longriver and the caravan park residents facing homelessness | Australia news | The Guardian (https://www.theguardian.com/australia-news/2017/may/14/its-public-housing-or-my-car-longriver-and-the-caravan-park-residents-facing-homelessness?CMP=Share_AndroidApp_Copy_to_clipboar d)

[JDNSW]

As with any house, it needs to be thoroughly checked - don't let worrying about the legal status distract you from that; both need to be carefully considered. I have a friend in one of these in Caboolture, has been there about ten years, and has had to spend a lot of money dealing with termites - despite it being given a clean bill of health when she moved in.

[Ausfree]

Do you have security of tenure? What does it cost annually? Can you sell on the open market or only to the property owner? Can the property owner evict the tenant without compensation?
'It's public housing or my car': Longriver and the caravan park residents facing homelessness

'It's public housing or my car': Longriver and the caravan park residents facing homelessness | Australia news | The Guardian (https://www.theguardian.com/australia-news/2017/may/14/its-public-housing-or-my-car-longriver-and-the-caravan-park-residents-facing-homelessness?CMP=Share_AndroidApp_Copy_to_clipboar d)

I have done a fair bit of research and answered a lot of those questions. You do have security of tenure, unlike a resident in a caravan park. I guess, what I am asking is first hand knowledge from anybody here who has actual experience with these types of places.

[Gordie]

I think the budget said if you downsize into anything, the surplus can be put into your super....so if that is the case, in my opinion, if you are still fairly self dependent...just going to a smaller freehold house would ensure your estate isn't eroded by fees for so long, when you really needed to go to a village...you could sell again, probably make a bit of profit and then start paying the fees at a retirement home.

[Tins]

I think the budget said if you downsize into anything, the surplus can be put into your super....so if that is the case, in my opinion, if you are still fairly self dependent...just going to a smaller freehold house would ensure your estate isn't eroded by fees for so long, when you really needed to go to a village...you could sell again, probably make a bit of profit and then start paying the fees at a retirement home.

No expert here, but it needs to be said that the Budget has yet to pass it's second reading, which it will, but the Senate is another matter. The Bank tax will pass, but I wouldn't count on too much else.

[Eevo]

Now that I am in my seventies, the bride and I are thinking of downsizing and moving into a retirement village while we are still able to move about reasonably actively. Anybody here had any experience with these types of over 55's villages. The appears to be two types, one is called "Retirement Village" where you buy into a unit and rent the ground it stands on, big killer here is the "Deferred Management Fee" which can reach as high as 30% of the value of the unit when you eventually move out...........(I guess I mean fall off your twig).




my grandmother had one of these. lived in it for 20 years. absolutely loved it! she was so busy going out, seeing friends or having people over, that we the family, had to make an appointment 2 months in advance to see her!

[alien]

The only experience I've had with these villages was years ago delivering timber for pergolas.
The carpenter we supplied timber to said there was only 2 design options due to "village rules".

One conversation I haven't forgotten was with a bloke loading food and bags into his ute.
He drove 100mt to his caravan to unload the above items into it.
Village rules didn't allow him to have the van in front of his unit to pack it.
He also said servicing his car was done behind closed doors as it was frowned on too.

[Chops]

I have family in I think a "village", I'll see what I can find out. They moved in quite some time ago now, he's since passed, and she still loves being there.

[DiscoMick]

My father was in a retirement unit. Later he moved into their nursing home. He only got back about 60 percent of what he had paid for the unit after six years so it wasn't a good investment but it was good to have the right to enter the nursing home when needed.
You lose a lot of privacy and control over your life, but gain neighbors and an activity program.
I would prefer to own outright. You could just buy a unit or townhouse in town where you can walk or catch the bus.

[PhilipA]

My brother was resident in a one bedroom unit in a retirement village ,with call button facilities in Sunnybank Qld.
The owners decided to redevelop the one bedroom units , by building a new building, and he was paid about what he put in 10 years prior. AFAIK he has no rights of moving into the new units.

His daughter signed the contract with obvious retention fees, but he has had NO capital gain over 10 years on one of the most sought after blocks of land in Qld adjacent to the Sunnybank Mall.

So check the contract VERY carefully.

Regards Philip A

[Ausfree]

Thanks everybody for your input. As I said it is only a thought at the moment and we are looking at an 18 to 24 month period before we move. Plan B is to buy a unit in one of those Strata Title places because as a long time home owner I must admit to feeling a little uncomfortable with the term "Rent the Land" even though you own the building on it. We have been to a few "Open Days" at some of these villages and they all give lovely glossy brochures saying how wonderful everything would be in their village..................yeah right, I like to do my own investigating.:unsure:

ps. We will probably go to a few more "Open Days" as you get a free cup of coffee and a free sausage sizzle. One even had wine tasting. Ah well, its a day out.:banana:

[ATH]

We've been thinking the same way Ausfree, and really don't like the management fees or the fact you have to sell it back to the owners or you don't actually own both building/land anyway. All very shonky to me.
We've got friends (friend now as his mrs. of 70 years passed away not long ago) and he doesn't care who takes what after he's gone. Actually that's not a bad attitude as he's still getting around at 92 so really why worry about what happens when you've gone.
I think we'll go for a small unit in a block close to transport and pub until we're really forced to go into a retirement place.
Anyway, hope you'll both be happy and most importantly, healthy, with whatever decision you make.
AlanH.