When you get older, you might think about finding a place to spend your golden years, and renting a property in a retirement village may cross your mind. This option provides seniors with the freedom and opportunity to release their assets. In addition, the price is also lower than purchasing a house, because not only does the rental fee cover the building, but it also includes the facilities and services. Hence, the demand for rent becomes high, as they view it as a wise decision.
If you are interested to learn more about retirement villages, this blog has gathered more details about this living option and a variety of deals that may suit your needs.
What Are the Consequences of Renting in a Retirement Village?
Although rental may seem harmless, there are some risks associated with this choice that you should be aware of.
Renting a place equally means that you should be ready to cope with increasing fees and uncertainty, since there is no guarantee that your contract of lease will be renewed. Consequently, you may end up moving to new places more frequently than you want, and everybody knows how overwhelming relocation can be.
Moreover, it can be difficult to locate senior communities that offer a rental option. Even if you manage to find one, you may have to meet many qualifying requirements to be accepted to the program. As reported by the Property Council of Australia and PwC’s retirement census in 2021-2022, just 2% of the villages surveyed nationwide provide rental options.
Furthermore, you can lose the freedom to maintain your lifestyle and customise the new place to be more like home if you rent it. Many property owners create strict rules, such as a pet prohibition in the building, making renovations to the building or the interiors, or as simple as putting up some pictures on the walls or getting your favourite plants inside the building or in the yard.
You have learned some disadvantages of renting a place in a senior community that you should take into account. However, those facts should not stop you from moving into the senior village. There are some alternatives that you can take to find your place in a senior community. You will learn about those strategies in the next section.
Financial Options Available for Retirement Living
Each person has a unique approach to managing their financial situation, especially when it comes to their post-retirement life. Some people may enjoy taking time to think things through and put everything together in advance, but others may find it easier to just deal with the situations as they arise. Below you will find four different options that are worth considering instead of renting in a retirement village.
1. Prepaid program
This will be the perfect choice for people who are forward-thinking and prefer to plan all things in their lives ahead of time. If you are one of them, you can sign up for this program. Other than paying for the cost of your house, you should also allocate some funds to pay for the initial administration and service charges.
With this program, you don’t need to worry about having to deal with rising rental fees during your stay, as all the bill has been settled. In case you want to move out of the residence, the management will assist in selling the house at the best possible cost, so you can still gain any profits.
2. Refundable payment
This scheme allows you to rest easy, because the money you spent on the property is covered by the refundable cost that you paid in advance. It also means that you won’t be charged with additional administration expenses after you quit the senior community. Moreover, you don’t have to deal with the stress of having to put the ad in the market, legal costs, and restoration expenses when your rent is finished, or you want to move out.
3. Postponed administrative charge
This deal is worth considering if you want to maximise your retirement savings. It enables you to postpone settling the management costs until you market your property. Hence, you can spend less money to rent the place and still have enough balance left over for leisure activities and earn bank interest.
4. Various concepts
There are many senior communities where the people living there may already own a house, either freehold or leasehold. The available concepts may vary from town to village. It is advantageous to look at these possibilities in joining this village.
What Are the Benefits of Living in a Retirement Village?
The decision to switch into a retirement village is not only about financial commitments, but also about adapting to a new environment that promises you plenty of benefits in your golden years.
First of all, you can feel secure living in a neighbourhood that makes you feel at home. You are allowed to design your house to perfectly reflect your unique preferences and style without having to fret about the management meddling in your decision, like what the landlords usually do. Instead of interfering in your business, the management arranges many activities that you can join freely. So, you can be actively engaged with other residents in those group activities or while enjoying the village facilities.
Moreover, it offers you a network that is more solid than just having nice neighbours. This community can always be a support system that you can count on, where you can safely share your values and passions. It can be your safe space that fosters your sense of belonging.
Finally, living in this village also brings benefits to your overall well-being. Research indicates that establishing close relationships with other people in the golden years can improve your health and happiness. That’s why the management strongly focuses on developing spaces where the residents may interact and take part in group activities to make connections grow between each other.
Conclusion
There are several ways that you can choose to get a place in the retirement village. To rent or to purchase, you can choose which is most suitable for you.
Take some time to do your research, so you can find a perfect match to fulfil your dream retirement lifestyle. Do not hesitate to consult with the customer service team of the communities, as well as the residents to explore the best options.
