If your home has become too large for you or no longer meets your needs, you may wish to consider moving to a retirement village.
There are a lot of things to consider when making your decision to live in a retirement village.
Before you start looking at units, it’s vital that you work out what you want and do your research. You may also consider discussing your retirement living options with trusted family and friends.
The Compare retirement villages website makes it easy for Queenslanders to find a retirement village that suits their needs. The site allows you to search for and compare villages based on location, services, facilities and entry price range.
Before you buy, you should:
Read the rest of this guide for more detailed information.
This guide will take you through the steps involved in buying a unit in a retirement village, including getting legal advice and finding out all the costs involved.
The guide will also explain the risks involved in buying retirement units as investments, as buying into a retirement village is not the same as buying an investment property.
Buying into a retirement village is not the same as buying an investment property.
You may face substantial costs when leaving a village. Buying into a retirement village is a lifestyle decision, not an investment to make money.
Living in a retirement village is not the same as owning your own home or renting. In most cases, you do not purchase the property title to the unit. Instead, you purchase a right to live in the unit and the right to benefit from the lifestyle facilities the village offers.
The cost of providing the unit and lifestyle generally exceeds the amount you pay when you move in to a retirement village. The village operator recovers the balance through an exit fee payable after you leave the village. This amount, together with other fees and charges agreed to when you moved in, are deducted from your refund when your unit is ‘sold’ to the next resident.
As a general rule, the deduction of the exit fee and other charges means the amount paid when you moved in is significantly reduced at final settlement, even though the market value of the unit may have increased.
The Compare retirement villages website provides example scenarios showing the potential effect of different village contracts and fee structures. It does not constitute advice, but shows some of the financial aspects you should consider.
Think about where you want to live and what sort of village might suit you best.
When you start comparing villages, ask lots of questions and try to speak to existing residents about what it is like to live in their village.
You may wish to think about whether:
The Compare retirement villages website can help you identify villages that may meet your needs.
The Compare retirement villages website provides a starting point for Queensland retirees and their families when choosing a retirement village. The website allows you to compare villages based on location and facilities, and provides the Village Comparison Document (VCD) (DOCX, 113KB) for each Queensland village.
Retirement Villages in Queensland are required to have a website and a VCD for prospective residents to review. This document will enable you to view and compare features of different villages.
The VCD gives general information about the retirement village accommodation, facilities and services, including the general costs of moving into, living in and leaving the retirement village. This form replaces the Public Information Document that was used for residents prior to the 1 February 2019.
When you find a village that you are interested in living in, you can ask the scheme operator for a Prospective Costs Document (PCD) (DOCX, 240KB). This document must be provided to you at least 21 days before you decide to enter into a contract. The PCD refers to a specific unit in the retirement village and gives details about:
You may be asked for further information by the scheme operator to assist in the completion of the PCD.
By law, you must have a copy of your residence contract, VCD and PCD, the village by-laws and any other required documents for at least 21 days before you and the operator enter into the residence contract.
This gives you time to read these documents carefully and seek professional advice about your legal and financial interests.
It is important that you understand the information in the PCD. Please note that the PCD is not a substitute for the full terms of your contract and it is strongly recommended that you seek independent legal advice.
A residence contract is a legal agreement between you and the retirement village operator.
It gives you information about your rights and responsibilities to live in the retirement village as well as those of the operator.
The contract gives you information about using the shared facilities and access services of the village, and also explains the process on how your place in the retirement village can be sold or transferred.
Read more about a residence contract.
You will need to accompany the operator when they complete an inspection and an entry condition report of the unit you intend to purchase. The operator needs to complete the report to the best of their knowledge.
The operator must provide the entry condition report to you within 7 days of occupancy. You have 14 days to complete your section of the form and return a signed copy to the operator.
View the Retirement villages entry condition report .
You should get legal advice before buying into a retirement village. Additionally, it is strongly recommended you get advice from a solicitor with expertise in retirement villages before you sign anything.
The solicitor will help you understand your financial and legal obligations and whether the residence contract is fair.
Consider appointing a solicitor who has expertise both in retirement village law and, if needed, general property conveyancing to assist with the sale of your home.
Caxton Legal Centre provides information on the Queensland Retirement Village and Park Advice Service (QRVPAS). QRVPAS is a free legal service that can help you:
Caxton Legal Centre also provides a self-help kit (PDF, 783 KB) that contains an overview of some key issues that you should consider before buying into a retirement village.
Retirement village legal and financial arrangements can vary from village to village. These arrangements can be complicated so we strongly recommended you seek legal advice from an expert with experience in retirement village contracts before you sign any residence agreement or contract.
It’s very important to know how much you will need to pay to move into, and live in, a retirement village. You should also consider carefully the affordability of the ongoing fees and charges and how these could increase.
You also need to think about how much you will need to pay if you wish to leave the village, and how much money you will have left to find alternative housing or care. The residence contract and public information document will include this information.
Consider preparing a budget. Doing a budget can help you understand what you can afford, including having enough money left to cover unexpected costs and emergencies. Read more about your consumer rights and responsibilities.
It is also recommended that you get financial advice from an accountant or financial advisor with expertise in retirement planning and who understands retirement village contracts. The Australian Securities and Investment Commission provides information to help you choose the right advisor.
The Compare retirement villages website provides example scenarios showing the potential effect of different village contracts and fee structures. It does not constitute advice, but shows some of the financial aspects you should consider.
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