My parents are getting old, talk around the dinner table is about Retirement Villages and Aged Care at Home. What a complex space! Full of legislation, Government bureaucracy, acronyms, and subsidies that twist the market price. My dad is currently looking at a Retirement Village run by Anglicare. Property looks good in the photos. The deal is, we pay a licence fee ("loan licence agreement") upfront (the price compares to buying a similar sized strata unit!), then at the end of my dad's stay, there is a complex refund repaid (less 6%, then less 4% each year, to a max of less 70%). Forget about property appreciation? Plus fortnightly maintenance fees. Just bought book, Aged Care, Who Cares? by Rachel Lane & Noel Whittaker. Which is excellent, but not real life enough. Was hoping to hear any first person experiences. Good, bad and ugly. ps. i would have thought this issue would have it's own sub-forum. We are only getting older. And this is a property issue. thanx in advance
Grandparents did one of these. They brought a 'licence to occupy' and depending how long they were there got a calculated amount back less various fees (yes there are ongoing fees too). Basically it gave a lifestyle benefit, not a financial one. To be fair I dont think they were ever promoted as doing otherwise. They all no doubt have subtle differences but other than being a house/unit it has nothing to do with property 'investing' - unless you count the publicly listed companies running them.
Haven't had much personal experience in this space, but we have looked at it from an investment and development perspective. There is a lot of different product. We were particularly looking in the 'manufactured homes' space, which doesn't have the massive deferred fees on exit. Some of the complexes we looked at were like holiday resorts, but you paid for it. Huge community spaces, gym, library, movie theatre, pools, bowling greens, woodwork shop etc. Halcyon have a few complexes in QLD and have won multiple awards for their product.
Our Men's Shed got invited to morning coffee by one of these village operators (enjoy refreshments, listen to sales pitch). They were upfront about the deal: when you move out (in a box or otherwise), they take 26% of the initial price + 50% of the uplift in value over what you paid. Needless to say there wasn't a queue of potential customers. But although the economics don't appeal, I guess a place like this could be the answer for someone like me (single, no children, no family in Aus) if/when I get to be 80+
There are other options without the “exit fees” you mention. Here is one example. Welcome to Regent Park | Regent Park - Lifestyle village for over 55s My Mother in Law is in a retirement village run by a large property group, which has an exit fee, plus ongoing monthly fees. The problem we have found with the exit fee structure is if you are not happy with the village for whatever reason, it’s a huge financial issue to leave. Also the overall village management has deteriorated however there is not a lot we can do about it. While most villages promote a variety of activities, sometimes these are only used by a few residents. So while they may have a bowling green, only 4-6 people will play. It’s not always as bustling with activity as you may wish. So my advice is to consider your parents needs carefully and choose carefully. Is this being looked at because their existing home is no longer suitable?
thank you all for feedback. Common theme is "lifestyle" decision, not a property acquisition. Just visited the Anglicare site today, they actually offer 3 options, all loan licence arrangements, entry price differs, but so does exit "fee" from 10%, 30% and 50% (the higher the exit fee, the lower the entry fee). Yes, for my dad. He wants the social element of the village. Existing house is still suitable Millie, but he wants to move on. Lifestyle decision it is then. Chindonly - i have noticed plenty of these low budget retirement villages on the south coast of nsw, $300K, get's you a 2 brm mobile home, with a lease over the land. I notice one developer has punched out 3 of these, that i know of, so he must have developed a business model for it.
Yes - as I mentioned there are plenty of different models around ranging from budget - 2-300k ish right up to premium product at 700k+. Yes, you only own the building and lease the land, but it normally also triggers some housing supplement from Fed Gov that helps pay the lease fees. I have seen the Halcyon sites, and they are simply beautiful - would consider retiring there myself. They look just like normal homes, even though classified as manufactured. Full disclosure - a friend of mine works for them. Homes for Sale at Bli Bli | Bigger homes and more space | Halcyon Lakeside (lifebeginsathalcyon.com.au) I am sure there are other similar ones down south.
From what I know, retirement villages are typically covered by State legislation and are not technically "Aged Care" (covered by Federal government legislation and funding/subsidies). This might also vary from State to State - I'm in NSW but have heard Queensland has tri-care which I gather is a model where you move (or are upgraded?) from retirement village > hostel > nursing home as your needs change. From what I have seen in my part of Sydney (last looked say 4 years ago) most facilities are one of the three types of accommodation and if your needs change, you will need to physically move.
I have a friend in a RV run by Lend Lease. Large complex, plenty of activities, common rooms, facilities etc - all self catered & independent living. Going in, the Villa was completely refurbished (whether it needs it or not) - all part of the purchase price. It stings going in & going out so it's not an investment. Nursing homes just sting.
We have these guys on the island - very fancy and different model to your Anglicare example: GemLife | Over 50s Resorts | Luxury Retirement Villages & Homes
