Retirement Villages..... why?

rockylizard · Guru

RE: Retirement Villages..... why?

Cupie · Guru

We have been thinking of 'downsizing' from our high set 5 bedroom three bathroom place in the burbs for some time so as part of the exercise we looked at a few 'over 50/60' lifestyle retirement villages.

A friend lives in one at the Gold Coast & he is extremely happy with it. It's got all the bells & whistles & is a very attractive place.

We were attracted to an over 60s Bayside Village so I looked at the relevant Qld Legislation & got a copy of their Public Info Document that outlines all the applicable rules & charges.

Wow

What a financial trap. You pay very highly for the 'lifestyle'.

eg. For this particular one

With water views from kitchen (through young mangroves ... will be large mangroves in a few years) price $700,000. (99? year lease of dwelling & land))

2 & 1/2 bedroom brick Duplex. Small garage. No caravan storage. 1 Jack & Jill bathroom. 2 toilets. 1 Lounge. Manicured setting.

Community centre with 1/2 size pool tables & swimming pool. Small Mens Shed. Visiting Doctor & Hairdresser. Village 'Bus.

Monthly fees are $700 excluding electricity & you weren't allowed to install Solar. Fibre to the node NBN at your cost.

Selling payment to the 'Developer' ... 4% of sale price for each of the first 4 years at 9% (total 36%) ... plus 50% of any Capital Gain. You are responsible for any Capital loss.

Also the 'Developer' pays for basic presale refurbishment but all non fair wear & tear is your cost. The 'Developer' handles the Sale & you continue to pay the monthly charges until sale along with marketing costs, with a time limit etc.

These are the main financial aspects that are covered by the legislation.

We decided that we would rather look at other forms of real estate investment & leave any residual $s to our kids rather than giving such a large lump to the 'Developer'. eg. In the same area a very good lowset 4 bedroom home sells for <$600,000.

Being an over 60s place there is a fairly high turn over of occupants & you can't stay there if you are no longer 'self sufficient' & have to move up & sell up. God's waiting room or worse.

Certainly not for us.

I realise that this was just one type of financial arrangement and this village is in a premier location .. but with only average facilities. They were very open and stated that you were buying a life style & not making a real estate investment. You can say that again. We could probably go cruising for a few years at that price.

We're staying where we are for a bit longer & continuing to look at other options...... slowly.

palaceboy · Veteran Member

Cupie wrote:
We have been thinking of 'downsizing' from our high set 5 bedroom three bathroom place in the burbs for some time so as part of the exercise we looked at a few 'over 50/60' lifestyle retirement villages.
A friend lives in one at the Gold Coast & he is extremely happy with it. It's got all the bells & whistles & is a very attractive place.
We were attracted to an over 60s Bayside Village so I looked at the relevant Qld Legislation & got a copy of their Public Info Document that outlines all the applicable rules & charges.
Wow
What a financial trap. You pay very highly for the 'lifestyle'.
eg. For this particular one
With water views from kitchen (through young mangroves ... will be large mangroves in a few years) price $700,000. (99? year lease of dwelling & land))
2 & 1/2 bedroom brick Duplex. Small garage. No caravan storage. 1 Jack & Jill bathroom. 2 toilets. 1 Lounge. Manicured setting.
Community centre with 1/2 size pool tables & swimming pool. Small Mens Shed. Visiting Doctor & Hairdresser. Village 'Bus.
Monthly fees are $700 excluding electricity & you weren't allowed to install Solar. Fibre to the node NBN at your cost.

Selling payment to the 'Developer' ... 4% of sale price for each of the first 4 years at 9% (total 36%) ... plus 50% of any Capital Gain. You are responsible for any Capital loss.
Also the 'Developer' pays for basic presale refurbishment but all non fair wear & tear is your cost. The 'Developer' handles the Sale & you continue to pay the monthly charges until sale along with marketing costs, with a time limit etc.

These are the main financial aspects that are covered by the legislation.

We decided that we would rather look at other forms of real estate investment & leave any residual $s to our kids rather than giving such a large lump to the 'Developer'. eg. In the same area a very good lowset 4 bedroom home sells for <$600,000.
Being an over 60s place there is a fairly high turn over of occupants & you can't stay there if you are no longer 'self sufficient' & have to move up & sell up. God's waiting room or worse.
Certainly not for us.
I realise that this was just one type of financial arrangement and this village is in a premier location .. but with only average facilities. They were very open and stated that you were buying a life style & not making a real estate investment. You can say that again. We could probably go cruising for a few years at that price.

We're staying where we are for a bit longer & continuing to look at other options...... slowly.

Just shows how careful you have to be, plus how widely varying they can be. I'm interested for one important reason. According to my figures the wife and I could retire "Today"if we sold our place here in Coburg. It would also solve the issue of two adult children living at home. The youngest is 20 though, so maybe he deserves another year or two at home at least. The Youngest daughter (24) needs to fly the nest though. All hell breaks loose between them when we go away. So a lifestyle village could be the solution. Gives me a couple of years to sort out my pre government pension finances as well.

Champing at the bloody bit we are. Guess this "still in the nest" is an issue for those that have kids later in life. Cant work out whether I'm being cruel or not.