Retirement villages by the Village Retirement group can easily be one of the most appealing choices of habitation for retirees. There are more than 2,200 retirement villages across Australia, and with the benefits of home and garden maintenance, on call medical assistance, and recreational facilities with many activities to keep oneself busy, it’s no wonder that so many people are choosing this option.
Unfortunately, the cost of living in a retirement village can quickly and easily become daunting. The entrance fee alone is roughly 90% of the median house price in the area which you desire to live. Other factors contributing to this cost include things such as the age and condition of the unit, the facilities available within the village, and the location in which the village rests.
In addition to this there are ongoing fees to cover costs such as maintenance, gas, electricity, and telephone, which all can and do increase (oftentimes more than was expected). Furthermore, many villages continue to charge ongoing fees to ex-residents, but the good news here is that every state and territory has their own regulations to determine the maximum amount of time that a village can continue to charge their ex-tenants.
Another concern people may have is that, depending on your contract, if you move out or die, your estate could very well still be financially responsible for months or even years afterward. Likewise, because they can be quite complicated, it could take years to receive back part (if anything) of your capital gain entitlement.
So, are retirement villages in Australia expensive? The short answer to that question is a resounding ‘yes’, but that doesn’t mean they’re not worth it. In fact, thousands of people every day are choosing retirement village living. The key is to do a lot of research and a lot of math until you find the right home for you.