Retirement Village Leasing & Sales
Are you thinking about leasing or buying into a retirement village?
When you’re ready to downsize your home and the never-ending to-do list there are many reasons to choose to invest in a retirement village community. But many people don’t realise that purchasing a villa or unit in a retirement village is not a bricks and mortar investment.
Instead of buying the villa or unit outright, you enter into a contract with the operator of the retirement village. These contracts can be even more complex and confusing than contracts to purchase a bricks and mortar residential property.
Some facts about retirement villages
- Over 90% of retirement village contracts are long-term leases. This means the retirement village operator retains ownership of the unit and you buy the right to occupy it as your home.
- While entry fees are, in some cases, comparable to the median house price, most contracts split the capital gains on sale between the operator and the resident.
- Living in a retirement village does not automatically entitle you to aged care facilities, even if they are on the same site and run by the same operator. Both fall under different legislation. Aged care facilities fall under federal law while retirement villages fall under state law.
- There are entry fees (your initial purchase cost), departure fees, and ongoing fees to pay for village maintenance and facilities.
Here’s how we can help
Your Aubrey Brown Property Law solicitor will cut through the jargon to ensure you fully understand the contract and your rights before making a commitment to lease or buy into a retirement village.
- Check all documentation to ensure the operator has provided you with everything you need to make an infirmed decision.
- Walk you through the contract to ensure you understand the purchasing, ongoing and departure fee structure as well as how your money will be spent while living in the village.
You can trust Aubrey Brown Lawyers to support you every step of the way on selecting a home for your retirement. Call us to book an appointment with a solicitor from our Property Law team today.