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BSB 806 015
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Moving into a retirement village

For many retirees the decision about whether or when to move from the family home into a retirement village, or whether to encourage a loved one to make the move, can be filled with doubt and anxiety.

But for retiree, Carmel Murphy, the decision was simple.

Eleven years ago, she and her husband Peter moved from a large family home in Wembley Downs to a secure retirement village in Wembley and have never looked back.

“Peter’s health was deteriorating and I couldn’t keep up with the maintenance needed to look after the gardens,” Carmel said.

“We looked around a lot of the villages but chose MercyCare in Wembley as it was so close to public transport, doctors and hospitals.”

Things to consider

Ben Myers, Executive Director – Retirement Living at the Property Council of Australia urges retirees and their families to think about their long-term needs before signing a contract to move into a retirement village.

“You may have plans for travel and lifestyle, or you or your partner may have to take into account your health and the likelihood of needing to spend more in future,” he said.

“Often a move into a retirement village can facilitate this, as the most common financial model allows you to purchase at a lower price, with part of the payment deferred until you exit the village – this is normally paid as a percentage of the re-sale price.

“Also take into consideration the regular service fee – this is the regular fee, commonly paid monthly or fortnightly, for the maintenance and general upkeep of the village.

“Make sure to find out what the fee covers, and what you will have to fund yourself for your regular cost of living expenses, to determine if your sources of income can cover this.

A checklist of costs may include:

  • The costs payable to enter the village;
  • All ongoing charges or fees payable by the residents and the method of determining any variation;
  • Any additional or optional services provided and their respective cost;
  • Details of costs associated with moving to and living in alternative accommodation within the village; and
  • A clear explanation of any refund entitlement (including any deductions from this amount) upon termination of a residence contract.

“We strongly recommend everyone gets independent legal and financial advice on their contract before they sign, so they have a complete understanding of what they are about to enter.”

Carmel says the tranquillity and security of village life is second to none.

“It’s such a simple way of living,” she said.

“I just love it; it’s secure, it’s friendly and you have the freedom to be able to come and go as you please.”

For more information about retirement villages please visit www.retirementliving.org.au.

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