What’s the difference between a land lease community and a retirement village？
Relocating from a family home after retirement can be a big decision. That’s why it’s so important to examine any potential changes carefully and make sure they’ll actually improve your life and allow you to live the way you want to without breaking the bank.
Among the various possibilities, learning to distinguish between a land leasing community and a retirement village is a good place to start with. Since the nature of tenancy is sometimes murky, we have included a brief overview of the two primary choices here.
What exactly is a “land lease community”?
Owners of “moveable dwellings” (such trailers, caravans or prefabricated cottages) in a land lease community pay rent to the community’s manager for the use of the land on which their homes sit.
In most cases, residents of a land lease community are exempt from paying stamp duty, body corporate costs, council rates, and exit fees. Your recurring site fee supports the upkeep of the land lease community’s infrastructure and grounds.
What is the definition of a retirement village?
There are various forms of tenancy in a retirement village operation. One option is to purchase a unit in a strata scheme; another is to sign a long-term lease; a third is to pay rent on a regular basis; a fourth is to invest in the village by purchasing shares.
Stamp duty and body corporate costs, for instance, may be due if the rental property is strata-titled. The expenses of community resources are covered by a fixed monthly general service charge. Retirement communities may charge residents to enter and/or leave the village which is commonly known as an exit fee.
What are the advantages of living in a retirement village?
- They encourage an active lifestyle by providing numerous possibilities for socialisation and entertainment. Residents can use the gym, pool, bowling alley, and community centre if they are typically available to them.
- Retirement villages are designed to minimise the need for upkeep and maintenance around the house or unit.
- Accessible by wheelchair or walker and with handrails and other safety aids installed in the home, the retirement village homes are designed to help you maintain your independence for as long as possible.
- Residents feel safe and quiet in retirement villages.
What you need to know
Choosing a location to spend your golden years requires careful thought and investigation. It may be helpful to consult your children or other relatives when making such a significant decision.
You should have a firm grasp on the costs associated with your chosen retirement lifestyle. It’s crucial to acquire the full picture from the retirement living provider so that you may make an informed decision; for example, the benefits of ownership as opposed to leasing may be outweighed by additional restrictions.
You may also have concerns about issues like visitors, pets, subletting, maintenance fees, rent increases, and utility costs. Looking into your retirement living options thoroughly definitely pays off.
To get more tips and ideas on moving to a retirement village in Sydney, give us a call on (02）91 888 555, or send us an inquiry on [email protected].