Friday, 26 October 2018

NO to a Retirement Village

Why we decided NOT to move into a retirement village.

In an article at www.oversixty.com.au retiree Dorothy Webster has dipped her toes into retirement village living. Here she explains why you must do the maths before signing the dotted line.

After spending a working life paying off your mortgage and/or accumulating savings, there comes a time when you wonder how you are going to live in old age without parting with your hard-earned capital? I have been investigating the choices for retirement.

There is the lifestyle choice of going to live in a retirement village but the terms can vary considerably. Some places I researched are a bit kinder, you purchase the property and when it is sold you get the capital gain less a commission for selling it. Both of these options have a weekly fee for the use of services such as swimming pool, club house, workshop etc.

The villages in Australia have a variety of terms so it pays to read the small print. They also have contracts that require exit fees when you leave. They all expect you to leave the property in excellent condition so a coat of paint and either a commercial carpet clean or replacement is also at your cost.

However, if you go into a village as husband and wife and one of you becomes ill and needs to be moved into the care facility the costs will increase substantially. You will still have to pay the weekly fee for your property and use of their facilities plus you could have to find approximately $1000 a week for care of your spouse. When they are getting the capital gain as well you could soon see your life savings disappearing fast.

If you are thinking about moving to a village I would advise you to make a list of advantages and disadvantages and check out their contracts and do the sums. After all it took most of your lifetime to earn it so do not be easily parted with your home or savings.

The full article can be read here - https://www.oversixty.com.au/finance/retirement-income/why-we-decided-not-to-move-into-a-retirement-village

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