Retirement options advantages and disadvantages
Retirement Village Advantages
- Living in a Village environment, building new friendships with
people your own age.
- Safety and security in a gated community
- In-house entertainment services such as library, bingo hall,
- Friday Happy hour and some meals provided
- Out-door activities such as lawn bowls and swimming
- Hair-dressing and medical appointments made
- No house maintenance or lawn mowing
Retirement village disadvantages
- All of the above is "at cost"
- Often, the family home needs to be sold to be able to afford
a home within the complex
- In selling the family home, the family inheritance is eroded
- Your new purchase is not a house and land package. You are purchasing
the right to live in a house on the complex
- You are bound by living within the Village Owners Rules of Conduct.
You may disagree with some of these Rules of Conduct but powerless
to make changes
- Any design changes to your new house will require Village Owners
permission. The owners have the right to ask you to pay for the
changes to be reinstated to its original state upon vacating the
- There are on-going monthly fees charged by the Village Owners
for the maintenance of the grounds and houses and administration
services. Monthly fees are set by the Village Owners and not regulated
by any Govt. authority
- Exiting or vacating the retirement village is always at cost:
- The home needs to be returned to its original state
- The Village Owners will insist on using their own trades people
to do the work
- The home is not renovated until after you have vacated the property
meaning that you need somewhere else to live while this happens.
Many delays can occur from the time you have vacated until the house
has been renovated and re-sold
- The house is not sold at market value. It will be sold
by the Village Owners for a price they dictate.
- You will sign a contract whereby you receive approximately 80%
of the buy price, less costs associated with renovations. One of
the reasons the house will not be put on the market to sell, is
that the Village Owners make more money by selling in-house. They
rely on the fact that a lot of money has been spent on advertising
all the advantages of living in a retirement village setting that
they have a waiting list of people who are prepared to pay whatever
is the cost.
Bottom Line! Have a lawyer read and interrupt the "exit clause"
and clearly understanding the Rules of Conduct before signing any contract
must be done before making a financial commitment of this kind.
Granny flat advantages - kept simple
- By comparison, granny flats are cheaper by far
- Granny flats as a second dwelling significantly increase the
value of the property
- You and/or your relative own the house and the land
- The granny flat design is tailored to your lifestyle
- It can be fenced off from the main house for privacy and security
- If you build on your property, you can live in the NEW granny
flat flat and rent the house
- By renting the house, pays for the cost of the granny flat over
- That means passive Income
- Your lifestyle does not dramatically change
- You are not bound by Rules of Conduct
- The family inheritance is not eroded
- No monthly fees to be paid to the village owner to live in luxury
- The property value with 2 dwellings has increased significantly
- Building on the son or daughters property means:
... Family can keep an eye on each other
... When the granny flat is no longer of use to the family, it can
be rented out
Feel free to contact Michael on 0478 889 032 to discuss your needs.