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.
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.
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.
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.
02 9481 8842