So, when you decided to retire, you didn’t mean from life, just from work! Remaining in your old home and the rigours of taking care of it on your own might be a bit too much for you to handle as your years advance, but that doesn’t mean you have to check into a sleepy old folk’s home and spend the rest of your days playing Bingo and watching TV!
Today’s exciting lifestyle communities are a type of residential housing with integrated services that offer people over the age of 55 glamorous retirement living that is affordable, community-centred, and fun! These invigorating communities are based on a land lease property model which means you lease the land from the community’s operator, buy the house situated on that land, and pay a very reasonable service fee for necessary maintenance and shared community facilities.
Lifestyle communities are growing increasingly popular among people who are younger and still working, as well as semi-retired and retired people who are seeking cost-effective housing in conjunction with a community lifestyle. Lifestyle communities are not at all the same as traditional retirement villages, let’s explore how they both work and which might be the best option for you!
So, what are the differences between a retirement village and a lifestyle community? The contracts and fees required can vary based on the different costs and obligations of your lease and/or ownership agreement. The retirement village contract usually gives you a leasehold or freehold/strata title option when you’re selecting accommodation, whereas lifestyle communities give you the opportunity to purchase your home while renting the land it’s built on.
The retirement villages usually operate on a ‘deferred management fee’ or DMF basis, so you pay the provider a portion of your capital gains when you sell your existing home. Conversely, many lifestyle communities don’t enforce a DMF while charging a small exit or administration fee of around 4 per cent instead. If you are considering entering a lifestyle community agreement it’s important to ask the provider about the details of its fee structure.
When it comes to facilities and activities, retirement villages usually have more care facilities than lifestyle communities do. That is changing though, today more lifestyle communities are introducing aged and home care options. When living in retirement villages the activities are coordinated by the village’s manager, but lifestyle community residents manage their activities themselves and choose along with their fellow residents how to run the village.
While both options have their perks, if you are into living life your own way, then the lifestyle community is the right choice for you!
