Embarking upon your retirement is an exciting time. Many retirees consider moving into a retirement village a great option to provide the needs, services and lifestyle choices they are looking for.
Trying to choose a retirement village to live in, though, can be confusing and stressful. You have worked hard to achieve the financial status you currently enjoy and don’t want to make a decision you might later regret.
There are different types of retirement villages which offer many different occupancy arrangements for prospective residents. From purchasing freehold property in a Body Corporate arrangement to buying a right to reside in a village – reading through the documentation involved can be voluminous and perplexing.
Understanding your entry costs and the ongoing costs of living in a village and also comprehending how any exit fees are calculated upon leaving the village is important.
Don’t assume that you won’t have to worry about having to pay exit deductions on the basis that you intend to remain in the Village until you pass away. Many residents end up leaving Retirement Villages earlier than they expected, either for family reasons or to move into an Aged Care Facility. At that point, the loss of capital via the exit deductions can impact upon your ability to fund an alternative residence or an Aged Care Facility of the standard you desire.
We recommend you consult with your lawyer and financial planner or accountant to ensure you properly understand your legal rights and responsibilities under the contract you are required to sign and the financial impact buying into a retirement village may have on you and the lifestyle you are hoping to lead in your well-earned retirement.
If you’re navigating the complexities of retirement village forms and paperwork, contact McNamara Law for trusted legal guidance. We can help you understand the impact of buying into the retirement village you’re considering and support you through the process of moving into a retirement village. Our team can also assist with finalising arrangements with the Village Operator and help manage the sale of your existing home if needed to fund your new lifestyle.
For more information, reach out to McNamara Law today on 1300 285 888.
