When you are looking to downsize and make a move to Retirement Living you need to be sure you make the right choice so as your latter years will be as comfortable and enjoyable as possible.

So let’s have a look at two of the major options in a little more detail.

LAND LEASE:

With this option you actually own the building and rent the land the building sits on. The homes are of a prefabricated/transportable design and are often available on land that was originally, or still is, a caravan park. Often a Community Centre, pool etc. is available for use as part of the package although in some cases you may need to share these facilities with caravan park visitors. Security of tenure and rules of operation are governed in NSW by the Residential (Land Lease) Communities Act 2013 however, despite often having age restrictions, they are not Retirement Villages.

Pros.

  • In the Murray Region prices are usually very affordable being between $195,000 and $250,000.
  • Depending on the individuals financial circumstances Government rent assistance may be available.
  • There are no Deferred Management or Exit Fees
  • There is no Stamp Duty payable

Cons.

  • Sales evidence in the Murray Region demonstrates that there is little if any Capital Gain upon resale.
  • Whilst owning the house sounds good it really means nothing. You can pick it up and move it (at considerable cost) but a big percentage of Shires and Councils will not allow prefabricated or transportable homes in residential areas.
  • Because you own the home you are responsible for all its maintenance both inside and out.
  • By their very nature these homes are built above ground level which often becomes a problem as you age and your

    mobility decreases.

    LOAN LEASE:

With this option you pay an Entry Payment most often similar to what you would pay to buy an equivalent quality home in the general community. This Entry Payment is loaned to the operator and used to further develop the village. When you vacate your Entry Payment is returned to you. Your tenure is secured by a long term lease and the village must be operated under the strict guidelines as set down in the NSW Retirement Villages Act 1999.

Pros.

  • Homes are of a high quality and constructed of Brick Veneer with a Tile or Colorbond Roof.
  • Homes are low set and built to disability standard allowing you to age in situ without the need to move to alternate accommodation or undertake expensive renovations.
  • A Community Centre is provided for the exclusive use of residents. Usually it will feature function rooms, recreation rooms, library, craft room, workshop, heated pool, spa and much more.
  • The operator is responsible for all maintenance both inside and out.
  • There is no Stamp Duty payable.
  • Resales in the Murray Region demonstrate that these homes are continually growing in value providing substantial Capital Gain.
  • In most cases you are able to retain 100% of any Capital Gain when you vacate.

Cons.

  • Homes are more expensive than the Land Lease option ranging in price in the Murray Region from $250,000 to $500,000.
  • You will be required to pay a Deferred Management or Exit Fee when you vacate.

     

 

If you would like to know more about your Retirement Living options please contact Kelvin Gilder on (02) 60258409 or email

sales@humeretirementresort.com.au