Source: Sorted
Moving into a retirement village can be a great option to live out your later years. But with so many different options and decisions to make both personally and financially it’s important you have all the information to make the call.
In most cases you will need to look at selling your home or using your other savings to get into a retirement village and likely have to top up your NZ Super to make the most of living there.
Buying into a retirement village is different from buying a house. Legal and financial matters are a bit more complicated with retirement villages. They’re operated in different ways, and what they offer varies.
Think ahead and consider what you might need in the future – will you be able to continue to live there if your health or mobility declines?
Imagine the ideal lifestyle in a retirement village, and make a list of the things that are most important.
Visit different villages and find out about the lifestyles they offer, including housing options, facilities and services.
Talk to the residents – they know better than anyone what life is like in the village they live in.
Take time to read the documentation associated with buying into, living in, and leaving the village, including the disclosure statement and occupation right agreement.
Find out the total costs. How much is payable on entry? What are the ongoing expenses? Will you share in any capital gain when you leave? Will you have to pay for any capital loss? How will these affect your future and the choices you have?
Get independent legal advice from a lawyer with experience in retirement villages. Ask them about the different legal titles and what they mean.
Get independent financial advice from a financial planner or accountant with experience in retirement villages.
Involve family or friends in the decision.
Buying into a retirement village is different from buying other residential property. The financial structures and legal titles can vary from village to village, so it's important to talk to a lawyer to understand what they are and what the implications are. More information and guides are available on the Sorted website.