When looking at the different retirement village options every retirement village company has their own ownership tenures including Loan Licence, Strata Title, Leasehold, and Community Title. These different tenures can be the difference between paying stamp duty or not paying stamp duty. Purchasing a retirement village unit (sometimes known as Independent Living Units) is completely different to moving into an aged care facility, in the case of a retirement village unit you are purchasing a legal right to occupy the premise.
There are costs involved with retirement villages and different retirement village companies’ costs vary including their:
- Ingoing costs (Price of the unit)
- Ongoing costs (Recurrent Charge)
- Outgoing Costs (including Deferred Management Fee (DMF), Share of Capital Gains, refurbishment costs etc.)
Some retirement villages have different funding options which can vary the upfront cost and how much you get back when you leave. Understanding the impact on your pension entitlement and your financial lifestyle is an important factor in your decision making
At Balance Aged Care Specialists, we can help by showing you how these different options between retirement villages can affect you financially including the pension or how it would affect you when moving out into a different home or into an aged care facility.
If you are interested in finding out more about Retirement Living options available, you can call 1300 556 287 to speak to a Balance Aged Care Specialists for a free consultation or please find some more information by clicking the link below.
Real Life Example
Barbara sold her home and wants to purchase a Retirement Village Unit, but she has been offered 3 different funding options. Barbara wants to know which option gives her the best pension outcome and which one is better financially for her individual circumstance.