Ah, yes. Retirement living. Sooner or later you will have “that conversation” about your options for living into your twilight years. In Australia, there are four distinct options. They are leasehold retirement villages, strata retirement villages, aged care facilities, and land lease lifestyle communities.
Each of these options offers various advantages and disadvantages. Let’s take a closer look at each and break down what the pros and cons are to help you make an informed decision when the day comes to have “that conversation” with your loved ones.
Option 1 - Leasehold Retirement Villages
There must be something about these as retirement villages seem to be growing and spreading like weeds throughout the country. There is no denying that this is a popular option, but there are a lot of ups and downs associated with retirement villages.
Pros
Probably one of the biggest advantages of this option is that you have a low-maintenance home without a garden. They also provide you with independent living surrounded by neighbours who have many of the same interests as you. In other words, you live in a community with other people in your demographic. Retirement villages also have on-site management and gated access for both security and peace of mind. Depending on the retirement village (or gated community, as they are also called) some have separate aged care facilities for residents requiring more care.
Cons
On the downside, retirement villages have age requirements, often in the 55-plus range. With this in mind, many of these sites also have restrictions on various things like pets, late-night parties (hey, you still party, right?), and who can stay overnight, the colour of your car, and the sound of your ringtone. Okay, the last two were exaggerations, but you get the idea.
Other disadvantages include how retirement villages operate. Typically, that means a leasehold arrangement which gives you the right to occupy the home you are not allowed to own. You may also be required to make a huge, make that massive, upfront deposit in the form of an entry fee. Oh, and there may be exit fees as well.
Bottom Line
Retirement villages provide low-maintenance, independent living with several guidelines. If you meet all of the requirements, you will enjoy living in one of these gated communities. If the rules cut into your lifestyle, this may not be your best option.
Option 2 - Strata-Titled Retirement Village
This is not what would be considered a popular choice, but it is a choice. With this arrangement, residents own a share of the common property. This would be such things as gardens, common areas, and a portion of the building. If you have lived in a strata building before, you’ll be familiar with the concept.
Pros
Downsizing to a place with less work required and access to various resort and leisure facilities is a big plus for many residents in a strata-titled retirement village.
Cons
You will have stamp duty to contend with following property purchase and there are going to be ongoing costs for such things as maintenance fees and administration which can become costly. Oh, and if you thought retirement village restrictions were tough, they can be even harder to meet in a strata-titled retirement village. Pets, visitors, hours of operation, the colour of your front door, window dressings, type of shrubbery, and many other restrictions exist and depend on the specific strata.
Bottom Line
If you are looking for a retirement living option where there is a lot of freedom to do what you want, when you want to, this may not be the place. However, if you seek a quiet, controlled environment with no surprises, you’ll love it here.
Option 3 - Aged Care Facilities
You may know these sites by the name of nursing homes. They offer round-the-clock care and support to residents. This is usually the option for residents who need assistance with various daily living tasks from meal preparation to dressing and bathing.
Pros
The round-the-clock access to nursing care and medical assistance is the biggest advantage to aged care facilities.
Cons
These sites don’t normally offer additional facilities like a gym and when you move into one, you do not own your home. These facilities operate on a leasehold basis. In other words, you can live there, but you can’t own where you live. There are also restrictions such as how many visitors you can have at a time and some sites are not pet-friendly. Also, expect to be paying care fees for as long as you live here.
Bottom Line
This is a costly option that is designed for residents requiring constant care with most regular daily tasks. It is not a good choice for active seniors seeking independent living.
Option 4 - Land Lease Communities
This is an option that is gaining traction with seniors looking for a low-maintenance lifestyle along with independent living.
Pros
You own your home and the land it sits on is cared for out of a site rental fee all residents pay into. This fee also covers the cost of caring for gardens and resort facilities. Probably one of the biggest differences between this and the other options is that you can live here even if you are not retired, provided you meet the age requirement of “over 50.” There are also no restrictions (party animals, take note) so you can basically do what you want, within reason, with your home, including having pets.
Oh, and there’s more.
There is no stamp duty to pay, no entry or exit fees, and you get to keep your capital gains, when that time comes. You do not have to share it with the resort owner.
Bottom Line
Land lease communities are far less restrictive than the other retirement living options. They provide residents with active lifestyles a place to call their own and somewhere to stay independent.
Conclusion
There you have it. A quick look at the four retirement living options available in Australia. Hopefully, we have helped you narrow down the best choice for you to consider when you get to that place where you have to think about the best retirement you can have.