A fresh approach to seniors living
Australia’s innovative concept in seniors living is setting new benchmarks in affordable housing for downsizers by offering a higher quality solution that’s exceeding expectations.
Lifestyle-focused land lease communities have become increasingly popular with downsizers, many of whom are freeing up hundreds of thousands of dollars to help fund their new lifestyle.
This newest housing trend is gaining a strong foothold in seniors living as it breaks down the walls of confusing contracts, complex financial arrangements and questions over legalities, and replaces uncertainty with a more simple and transparent ownership model.
Ingenia Chief Operating Officer, Nikki Fisher, said lifestyle communities are specifically tailored to the needs of active, independent seniors who can purchase and own their home, lease the land and pay no stamp duty fees or exit fees.
“Land lease living is not your average retirement community – it saves seniors thousands of dollars with a more affordable price point while introducing a whole new housing market that is not just for retirees but for all types of downsizers.
“It’s supported via government regulations and legislation with strong levels of protection for both home owner and operator, providing security and peace of mind with a variety of social benefits and financial gains,” Nikki said.
Author and seniors finance expert, Rachel Lane, said downsizing can be an exciting time, but it pays to do your research and crunch the numbers.
“You don’t want to be left behind when it comes to your senior living choices and comparing the different financial arrangements between retirement villages and lifestyle communities is like comparing apples and oranges.
“While it may seem that there are too many different financial arrangements to compare, the differences between retirement villages and lifestyle communities are important,” Rachel says.
“I find it easiest to break down the numbers into Ingoing, Ongoing and Outgoing,” Rachel explains:
Apples: Retirement villages operate under the Retirement Villages Act with a lease or ‘license to occupy’ as the ingoing price.
Oranges: In a lifestyle community you buy your own home and lease the land. ONGOING: Apples: Service charge: For pensioners in a retirement village to be eligible for rent assistance they need to purchase below a certain threshold (currently $207,000).
Oranges: Site fees: Because of the unique land lease ownership structure in lifestyle communities, most pensioners qualify for rent assistance on their site fees reducing their ongoing costs.
The greatest confusion between retirement villages and lifestyle communities comes from the exit fees, also called deferred management fees (DMF).
Apples: In a retirement village exit fees are standard. The exit fee is likely to be a percentage of either your purchase price or re-sale price, anything from 10% to 30% is common.
Oranges: Lifestyle communities do not charge exit fees. You own your own home and it is a viable asset, so the home owner keeps 100% of any capital gains made on the property if or when they decide to sell their home with no refurbishment fees.
After downsizing, Ingenia Lifestyle residents have the opportunity for more money in the bank and the freedom to live a flexible, lowmaintenance lifestyle, connect with like-minded friends, learn a new hobby or lock up, leave and travel.
Visit www.liveinwoolgoolga.com.au for more information.
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