Is retirement village life for me?
There are many benefits for residents living in a retirement village. If you are looking for a secure home designed with you in mind; affordability; low-maintenance; low-stress living; privacy; peace and quiet; a community of people with similar interests; opportunities to lead an active social life; and companionship then retirement village living could be a great option for you.
Is purchasing a retirement village unit the same as buying a house in the residential real estate market?
Purchasing a retirement village unit is quite different from purchasing a home in the residential market as the contracts, processes and costs are different. Usually when you buy a home it is on a freehold basis, which means you own the property. Most retirement village transactions are different because you are not actually purchasing the property – you are purchasing the right to reside in the property (at Lutheran Services you acquire a Licence to Reside).
How does a Licence to Reside arrangement work?
A Licence to Reside entitles the resident to occupy the retirement village unit until they decide to leave. To purchase a Licence to Reside you will not pay stamp duty and there is no registration fees associated with the title of the unit. In order to purchase a Licence to Reside, you pay an amount to the retirement village, referred to as an Ingoing Contribution (this is the cost of the unit).
What is an Ingoing Contribution?
An ingoing contribution is the cost of purchasing the Licence to Reside in the unit and the village.
What Contracts will I receive when purchasing a retirement village unit?
You will receive a Public Information Document (PID) and Residence Agreement. When you sign the agreements you will have a 14 day cooling-off period if you change your mind.
What costs will I pay while I reside in the retirement village?
While you live in the village you’ll pay a daily fee made up of two parts: the General Services Charge and the Maintenance Reserve Fee. The General Services Charge covers the day-to-day running of the village; repair of communal areas; staff costs; building and public liability insurance; and cleaning and lighting of communal areas. The Maintenance Reserve Fee covers longer-term maintenance such as fixing pot holes in the roads.
Replacement of capital items, such as hot water systems, is covered by the village operator.
Village residents are responsible for individual services connected to their unit such as electricity, internet, and telephone and contents insurance for the things that the residents own.
What is an Exit Entitlement?
The Exit Entitlement is the amount refunded to you, after you leave the village and the unit is re-sold. This entitlement is made up of the proceeds of the sale of the unit, minus the Exit Fee and additional costs you may have accrued.
What is an Exit Fee?
An Exit Fee (sometimes called a Deferred Management Fee) is deducted from your Exit Entitlement when you vacate your unit. The Exit Fee is based on a percentage of the Ingoing Contribution (the cost of the Licence to Reside).
The reason this payment exists is to allow the village operator to be compensated for their significant investment in the village.
When I leave the village when do I receive my Exit Entitlement?
You will be paid your Exit Entitlement after you’ve vacated your unit and it has been re-sold onto the future resident. We are required to pay the Exit Entitlement within 14 days after the sale of the Licence to Reside has settled or when probate is produced if probate is required.
After I leave the retirement village will I continue to pay ongoing fees?
You will continue to pay the General Service Charge until your unit has been sold but the amount will reduce over time. For the first three months after your Licence to Reside has been terminated you will pay the full General Service Charge. After three months you’ll pay part payment up to nine months. After nine months, even if your unit has not been sold, you will cease paying any General Service Charge.
Can I appoint a real estate agent to sell my unit when I leave?
Under the Residence Agreement the village will aim to sell and market your unit at no cost to you. If after six months your unit has not sold you can appoint a real estate agent but will be responsible for any commission payable to that agent. If you and the village cannot decide on a sale price then the village is required to arrange for an independent valuation of the unit to be prepared. The cost of that valuation will be shared between you and the village.
Can I order extra services?
Yes, you can order extra services. Depending on the location some of the extra services offered include laundry, cleaning and supply of meals.
How old do I need to be to live in a Lutheran Services retirement village?
Our minimum age of entry is 70 years. If a couple is looking to reside in one of our retirement village units, at least one person must be aged 70 years or above.
Is my pet welcome?
Yes, we welcome pets subject to compatibility with the village.
Can my family and friends stay over? How long can visitors stay for?
Yes, of course! Talk to the site manager if there are visitors planning to stay for more than a few weeks.
Is there access to an emergency call system in my unit?
Yes. There is access to a call system.
Does the village have in-home care?
Yes. To make living easy all Lutheran Services Retirement Living locations offer a Home Support service that can be government funded or fee-for-service – or a bit of both – depending on your situation. Chat to the site manager and they will be happy to tell you more.
Get in touch if you’d like to find out more about our Retirement Living locations or need help working out your next steps. Call 1800 960 433 or email email@example.com to find out more.