Models Of Retirement Villages

Retirement Villages

In my December article, we spoke about older Australians’ options when their family home becomes too much. Following on from this I will introduce you to different models of Retirement Villages.

RENTAL VILLAGE
Some Retirement Villages will offer rentals within their village. These operate similarly to a private rental arrangement, and you will sign a Residential Tenancy Agreement.

LEASEHOLD VILLAGE
A leasehold arrangement is when an operator owns the apartments, villas or units, and each resident signs a lease. Leases are generally 99 years. Usually, the operator charges an exit fee or a deferred management fee.

LOAN LEASE VILLAGE
Many non-profit organisations such as churches or charity run organisations offer Loan or License arrangements. This allows you to live in the unit or villa, but you don’t have a registered interest in it. Usually, the operator charges an exit fee or a deferred management fee.

STRATA OR COMMUNITY SCHEME VILLAGE
When you buy into a strata or community scheme village, you will pay the agreed purchase price to the unit owner under a sale of land contract. You become the owner of the unit, and you become a member of the owner’s corporation, and agree to abide by its bylaws. You become a registered interest holder.

COMPANY TITLE
There are not many company title villages around, but they do exist. A company owns the village, and you buy shares at market value.

The shares give you the right to occupy the unit. You have similar selling rights as strata villages. A Board of Directors, appointed by the shareholders, manages the property, and you need to comply with the company’s constitution.

You are considered a ‘registered interest holder’, usually keeping any capital gain, and won’t pay exit fees.

Cathy Bennett
General Manager
02 9481 8842
www.woodlandsvillage.com.au

Back To The HomePage

Like Us On Facebook

Facebook Pagelike Widget
Menu