I've thought about this before too, it sounds very nice having bowling greens and swimming pools or spas, hobby workshop, community room/library and games room, outside building and garden/lawn maintenance done, staff on site (all have to be paid and have normal work entitlements, leave, long service leave etc).

But who is going to pay for it?  You and the others in the village.

An old couple I know with limited funds sold their home and moved into a retirement village only to find the ongoing costs were too much for them, so sold up after a short time at a huge loss (as part of their exit fees and policy had to pay for the place to be painted inside and new floor coverings, even though they were almost new and in perfect condition, as well as the paint).

They then moved into a strata retirement village, which while it had none of the bells and whistles or staff on side, still had a levy to pay for gardening etc, but much less than what they had been paying.  They were handling this ok until it was decided by the committee and offsite village managing agent to upgrade their power requirments to the village, to be paid for by the owners, which was more than what they could afford.   They are now looking to sell and find a small home on a freehold title to buy instead.

Some may be able to afford this lifestyle and associated costs etc, but for those on limited incomes it really needs to be look at closely IMHO.

I used to sell Retirement Units/Serviced Rooms in Retirement Villages for various establishments...an independant Solicitors advice on the contemplated contract is essential and the best money you will ever spend.....I have seen most of the above situations and more.....many establishments are well aware you are at your most vulnerable at that stage of your life...the Contract/Licence to Occupy setting out your entry costs and even more particularly your exit costs including moving to a higher level of care, are purposely and perhaps out of necessity, many pages long and it requires a competent solicitor to interpret in plain language the various pitfalls you may and generally will encounter, cost wise......I have seen many instances of substantial capital losses particularly if your circumstances change in the shorter term, and you or your relatives can only recover what the next "purchaser/occupier" is prepared to pay particularly if there are a number of units available......it can be very very sad.....like Casinos the 'Establishment' never loses........caveat emptor.....get a solicitor and take ALL the documentation that you will be potentially executing and please follow his/her advice to save yourself much grief.......Hoo Roo

+1 Jetj comments....

Steve,  I've very recently helped move my father-in-law into a high-care nursing home from his previous address in a portable housing, aged-based 'village'.

Also, my parents moved to an "over 50's" manor/gated community-type thingy from their original home, in recent past.

Anyway, the differences and complexities regarding purchase price, recurrent charges and financial imposts upon sale (where applicable) are truly many and difficult to comprehend.

This set of differences applies both between the different 'types' of accommodation AND the differing organisations offering a particular 'type'!

So...whatever you do, I'd suggest you compare a few similar options very carefully....esp in relation to the contract and the rules....there will almost certainly be upfront costs/retainers involved as well as ongoing costs....and maybe even optional/extra costs.  As such, there's no specific answer to your 'reasonable' question, IMHO.

You should be able to google the village you are looking at and ask them to send you out some info on their charges for entry, occupation and exit charges.

This link is NSW but it may have some good info on it, also some others;

http://www.fairtrading.nsw.gov.au/Tenants_and_home_owners/Retirement_villages.html 

http://www.itsyourlife.com.au/ 

This Victorian Consumer Affairs site may be helpful too, see;

 http://www.consumer.vic.gov.au/housing-and-accommodation/retirement-villages/guide-for-retirement-village-living-audio-guide 

Also; http://www.iseniority.com.au/retirement_villages.asp 

I know of someone who has moved to a village in Hervey Bay. They own the property but not the land so they get rent assistance from Centrelink. The cost of getting in was $5000 no silistors or conveyancing etc. just like buying a caravan/mobile home etc. There are no exit fees so what you sell for is what you keep. you can sell through the village onsite office or a outside agent it is your choice. This village does not have water meters so water is included in the fortnightly fees. There is free caravan/motorhome or boat parking in a secured area and you can walk to the banks/post office/shopping centre if you wish.

http://goldenshores.com.au/

Regards Chris

There is also the option of investing the money from the sale of your property, and renting in a retirement village. From what I understand, there are no extra costs, just pay your rent each week.

I can only rent so I've also been looking at my options from that angle.

Happywanderer wrote:

---

Theres a village like that in Bundaberg Beth. You just pay rent, don't have to buy into anything. Beautiful units they are too.

---

 I thought there would be. I looked at a couple in Ippy too, but decided I want to stay close to my friends and doctors...the latter unfortunately. Two of my kids are out Ippy way.

Just my two-bobs worth.

My late father 'bought' into a village on the Gold Coast (which shall remain nameless) - it was cleverly marketed as a village for 'transportable homes'. Each home was built by the developer and designed to be split in two to be transported to another site. However, the big catch was the internal roads within the complex were deliberately made too NARROW to be able to get a suitable truck to any home in the park. So, they effectively sold 'captive' homes, not transportable ones. Dad had his on the market for nearly two years before he found a buyer. And the buyout fees and commissions were horrendous.

The other big catch was the village bought bulk electricity at discounted prices, but then internally on-sold that to each individually metered home at rip-off rates.

Lots of good info here, and I have digested it all with interest.  I recently took an elderly relation for a look at a rental type retirement place.  The units struck me as small and for the weekly charge, I could rent a 3 bedroom house.

Will be leaving my options open when it comes time for me to down size and settle down.

Garry

I ceased being involved with Retirement Villages when I saw the substantial capital losses incurred by the next of kin of those I had sold "Licences to Occupy' and were now deceased. Losses that would be difficult to incur if buying a "normal" strata unit in a complex with a strata title and nothing to do with a Retirement complex......the 'Establishments' I found have little interest in pushing/promoting one of these now vacant 2nd hand units when they invariably have new units/services rooms/apartments available as well competing at sometimes lesser amounts than the original deceased occupants paid........I saw the Establishments make ridiculously low offers to the next of kin to take them "off their hands" after their units had remained vacant for considerable time with no takers... it is a minefield of supply and demand, and of course location, and as I said earlier all at a time in one's life when they are the most vulnerable....it never ceased to amaze me how often quite lively elderly folk entered these Institutions/Establishments and how quickly they were getting around on walking frames with many I feel 'going to the their last round up' far too prematurely than if they had remained in their previous units/homes with some day care assistance...just my observations...I wont be going into one while I still have my faculties, no matter what age I am...get Independant Solicitor advise and hasten slowly.....Hoo Roo

I think the good villages have a waiting list of people wanting to take a residence.

Buyer beware of what you are buying into.

I am reading these posts with interest as I am intending to look at what they call Home Parks around central NSW in a couple of years.  And my limited knowledge at this stage is you buy the relocatable home (considerably cheaper than house and land units)  and as you are renting the land you can apply for rent assistance once on the full aged pension. You also pay a fortnightly fee which usually is the same wether you are a single or a couple. I have not yet investigated the selling up clause wich is sometihing I will do.

Happy for any comments if people know about these parks...

That seems a better option to me Steve.

For me, I'll most likely have to go into what used to be called a Housing Commission unit in Qld. Not sure what it's called now, but I know it'll be a seniors one bedroom unit. I like the idea of moving to a small country town, but I can't/don't want to move away from friends, doctors, and hospitals.