Retirement villages.
From time to time, the question comes up here. Should we sell and downsize to a retirement village.
There is a lot more to it than appears on the surface. Reading through a recent piece on the topic, in a daily paper, this comment presented a very good precis.
"Have you ever really looked into the costs involved in the over 55's housing sector? First of all, you don't really own the house you live in, you are effectively leasing it. When you decide to 'sell' it is handled by the owners/operators of the housing. Standard contracts stipulate that the person leasing the house must pay 30% of the sales price to the owners/operators. Out of the remaining amount you must pay for a total renovation of the house before the sale is complete. On top of that there is a monthly bill for services such as maintenance. This is normally in the range of $350 per month.."
Plan, that's the conclusion I've reached. I'm not hemmed in by rows and rows of cottages, and can walk out into my back yard with trees and shrubs and birds to look at, and feel private. Though i don't do the garden myself now, as you say, for the money one would pay for maintenance, I have my lawns cut, including two nature strips, shrubs and trees pruned, for far less than what one would pay at a village. I'm not saying others should not make the move...it doesn't suit me. I had an article lso on how legal fees eat up the finances, but have not kept it.
Always good to talk these things out as we also keep wondering in the not so distant future (we think not yet though) :) should we buy into a village but for us being extra private people having such close neighbours would be very scary to us. We are all different and it does suit many, but I do not think it is for us but in saying that who knows what the future holds.
We keep hearing "do not leave it too late to move" as we all become older of course and settling in easier when still capable of doing all has to be done but we hope to stay in our own home forever. Easy to say when still a couple.
I am like you Koko and Phyl, I would go crazy if I had to live in such close contact with others as I also am a a very private person and enjoy my solitude, however many need others around them.
I think that as we age, we need to do a realistic assessment of our capabilities AND our support network. If we have family/friends who can and will assist us, then staying at home is obviously the best option.
In our later years, we need to ensure that we have a comfortable, low maintenance home preferably with good access and no stairs. Close to shops, medical facilities etc., etc. Naturally, we also need to be close to that all important support network.
Unfortunately, depending on how long we live, we may eventually become a burden to our loved ones and need full time care. Hopefully, by the time I hit that stage I will be well into dementia and wont give a hoot where I am.
Or we might have the peaceful pill
Here in South Australia I have a courtyard home,there are 2 houses on this block,one house behind another,I have the house at the rear of the block and a drive up the side of the other house,it has a paved space in the front for vistors to park,there are 3 bedrooms and a dine,lounge,kitchen all in one and a nice size yard for my little dog,
I am like you folks I like to be private,and no nosey neighbours
The Retirement Village industry is alive and well in South Aust and are an excellent way of making money for the owners be they a " not for profit " organisation or some other group who have shareholders
The decision as to either live in one or not is very much an indiviudual one I feel and what suits me would........maybe ....... not suit others
I for one will stay at home for many reasons and with an increasing variety of Govt. help available it will be a suitable option hopefully to the end of my days........A suportive family is a big help also
To live in such an establishment one is buying a way of life .......fun activities .....friendly neighbours all living cheek by jowl.........comunal things to do .......restaurant style foods available ......cleaning .........laundry .......etc etc ......but they come at an extra cost
Have a good look around and get all of the information available and do not be panicked into any quick decisions .........and good luck
Have found the article on contracts/ret villages.
It's big business...just look up Stockland....huge.
Here is the article.
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"
Retirement villages are a popular choice but can be a huge drain on finances, writes Lesley Parker.
Changes to legislation covering retirement villages haven't stopped the flow of complaints from residents about contracts that often block their way to any return from what is likely to be their final property transaction.
Australians are fond of bricks and mortar and they're used to making money from real estate but buyer's advocate Richard Andrews, who specialises in finding retirement units, says it's a ''good outcome and I think a fair one'' if he can get a client in and out of a village within 10 years with their original capital intact.
Many retirees get back less than they put in once a village operator has collected various fees and charges and perhaps a cut of the increased value of a unit - and that can be after years of capital gains in the surrounding suburb.
What's left when they move out - on average, 10 years later - depends on the parameters of any departure fee charged, whether the operator receives a share of any capital gain and what the contract stipulates, among other things, about having to refurbish the unit before resale.
The bottom line is you need to consider the overall cost of the lease or purchase when assessing a village.
''You certainly don't buy into a retirement village to make money,'' says Andrews, the chief executive of the Find My Retirement Home service. ''It's a lifestyle choice and retirees need to keep that in mind.''
TRANSPARENCY ISSUES
Residents' advocates say villages can be great for downsizing, security and companionship and they welcome changes to state legislation covering villages in NSW and Victoria that have improved residents' rights.
However, they remain concerned about ownership structures that are difficult to compare; the dominance of long-term lease agreements that they say favour for-profit operators; thick contracts that are hard to understand; and the transparency of ongoing fees.
They're also disappointed the Productivity Commission draft report on aged care didn't take up a suggestion that retirement-village legislation become a federal government responsibility. The report did, however, recommend state and territory governments pursue nationally consistent laws." "
Read the rest....
I would be very careful about investing in a retirement home and would prefer to stay in my own home for as long as I can.
Not sure how I would feel if what has happened to 3 retirement village homes here today putting 400 residents at risk. I don't think that you can always be assured of your future in these places.
A constant theme of the findings of independent research including advice from government agencies is that it is cheaper for government to have seniors remaining their own homes for as long as possible and the needs of seniors are better met that way. Now that means that where necessary, services should be delivered to the senior's residence.
However, developers want more projects and entrepreneurs are investing in retirement homes, so make no mistake folks that there will be considerable political pressure to prise seniors out of their homes and onto the market again. As usual the media will have en eye for what their advertisers want when reporting 'news' and in their running commentaries.
Seniors are seen as a politically soft group and they are seen as having a lot of money tied up in their homes. So it doesn't take a genius to realise that given the distinct lack of principle and lack of planning by federal governments, government will find it convenient for all sorts of reasons to let loose the horde of ravenous entrepreneurs upon the (theoretically) well-off Boomers.
It will be like feeding time for the White Pointers. It has already started with federal 'consultative' forums on aged policy that don't include the affected voters, where arious health, welfare, housing and whatever entrepreneurs are 'representing' seniors views for them.
Let the buyer beware, but ultimately most will be forced in a direction that allows them to be relieved of their assets well before their lives come to an end.
Seggie. As I've mentioned before, I checked the very fine print re retirement villages which is a thing one must do. Contracts must be checked by the best solicitor too as you may find a few clauses that make you say to yourself 'what's that mean'. If and I mean a big if, you have plenty of money and like company, go ahead. It's the money issue really. If you have a great bank account, you could always leave and move somewhere else. A tent on a riverbank with plenty of Aerogard sounds more like me.
Taking the view we should be looking at downscaling from our very large home and yards to be closer to medical facilities in the nearest town, Gladstone, Central Queensland, we visited a new "retirement village" there in Gladstone. The units are for sale, and yes, the weekly contribution is high, as is exit fees, (they were called by another name).
The unit are so small it would be like living in a small bird cage. There were so many units shoved onto that piece of land......there was no back door to the units.....a tiny washing line was shared by at least 4 other units......this exercise left us feeling very "down" about this downscaling to be closer to m edical facilities.
Are there any members here from Gladstone Central Queensland who have done this exercise? By the way, the property market is so depressed in this area at the moment after the initial boom in housing in late 2011.
Do not move from your home but ask for assistance - the government is starting to realize it is lot cheaper to look after somebody in their home than paying nursing for beds
I think a person would be better off paying someone to look after their grounds and stay in their own home. I guess you have to pay for Elect / Phone / Contents insur'/ etc etc too, on top of the maintenance