Your top retirement living questions answered

What would you like to know about living in a retirement village? Here, we answer the most commonly asked questions.

What is a retirement village?

Retirement villages are residential communities designed for people who are generally over the age of 65 and retired from full-time work. However, plenty of residents continue to work or volunteer part-time while enjoying village life.

How do retirement villages differ from aged care?

While retirement villages are designed for active and independent retirees, aged care facilities cater for those who need full-time care and can no longer live independently. Most aged care facilities focus on clinical-based care for older Australians who are unable to live independently in their own homes. People in retirement villages still enjoy the benefits and privacy of having their own home, without the worry of day-to-day property maintenance or gardening which are taken care of by village staff.

Residents in retirement villages also have access to a range of village facilities and are surrounded by like-minded people who engage in a wide range of social activities and events.

Moving into aged care is rarely a choice: it often occurs following a significant health incident or when it’s considered necessary for one’s health and safety. In contrast, moving into a retirement village should be a choice at a time in an individual’s life where they can benefit from all that retirement village living has offers.

Are retirement villages the same as land lease communities?

Also known as ‘over 55s lifestyle communities’, ‘manufactured home estates’ and ‘resort communities’, land lease communities are residential communities for older residents and offer many of the same benefits. They may look similar from the outside, but there are fundamental differences. For instance, land lease communities are legislated under the same laws as manufactured homes parks and caravan parks, so if the operator ceases to exist, your right to remain in your home isn’t protected. On the flipside, your right to live in your home is protected in a retirement village, which operates under the Retirement Villages Act. For more information, see our article: Different retirement living options explained.

What’s it like to live in a retirement village?

Good question! Retirement villages are hubs of activity with ample opportunity for social connection. Facilities will vary by village, but you could have access to amenities like a swimming pool, community centre, library and hairdresser. You can read what some of our residents think about village life, or check out our Good News Hub to see what’s been happening recently.

Will I own my house?

The Verge at Burleigh G.C., our brand new retirement community on the Gold Coast, will operate on a leasehold ownership agreement, which means RetireAustralia owns the land and the units, while you acquire the right to reside in your home for the duration of a long-term lease, generally 99 years. Your tenancy is secure for as long as you want to stay. The upshot of this is that you won’t need to pay stamp duty, which is generally one of the biggest upfront costs when buying a property.

How much will it cost?

To increase financial certainty, we’ve made our contracts as clear and transparent as possible. We specify, upfront, which costs you’ll need to pay, and what they cover. Here’s a quick breakdown of the fees you’ll need to pay over the duration of your stay in our leasehold retirement village on the Gold Coast – The Verge at Burleigh G.C.

Entry payment

Your entry payment gives you the right to reside in your new home and is typically 70-80% of the local median housing price.

You will not have to pay stamp duty on your unit, leaving you with extra money in your pocket to enjoy while you’re settling in.

Monthly service fees

These cover our operating costs, as well as council and water rates, building insurance, home and garden maintenance, upkeep of shared facilities, and support staff such as your Village Manager. By law, retirement village operators cannot profit from services charges, and these fees are regulated by the Queensland Retirement Villages Act.

Deferred Management Fee (DMF)*

When it comes time to leave The Verge at Burleigh G.C., you’ll receive an exit entitlement, which is the purchase price minus the DMF. This fee is capped at 25% of your entry price and is stepped during your first five years in the village. There are no further increases after this period, no matter how long you stay.

By charging this on exit – rather than incorporating it into the purchase price – you’ll not only free up your cashflow but find that your move into the village is much more affordable.

What age do I have to be?

RetireAustralia villages are designed for people over the age of 65.

Can I live in a retirement village on a pension?

Absolutely. Many of our residents receive an age pension. Your eligibility largely depends on the size of the entry payment you make when you move into the village – also known as an entry contribution (EC), compared to the extra allowable amount (EAA). The government compares these figures to determine if you’re considered a home owner. If the entry payment is less than the EAA, you may be eligible for rent assistance. See the federal government’s ‘Social Security Guide’ for more information.

Can I rent in a retirement village?

We don’t currently offer the option to rent, but if affordability is a concern for you, please give us a call. We can talk you through our most cost-effective communities and see if we can find a home that suits your budget.

What happens if my care needs change?

If your needs change, you can rest easy knowing you can access care and support if you need it. At The Verge, you will be able to receive flexible care and support in your home from RetireAustralia’s Home Care team or a provider of your choice.

Our Home Care service makes life a little easier and gives you peace of mind that, should your needs change, you can continue to stay safely in your own home for longer. Our care team can help with household chores, meal preparation, showering, dressing, and medication support, to name a few. Care is tailored to your individual needs and funded privately or through access to an approved government funded Home Care Package (HCP).

Can visitors stay with me?

Absolutely! This is your home and we want you to treat it as such. We encourage family and friends to visit and stay overnight if that suits. It varies by village, but guests can stay between two weeks and 30 days without requiring approval. Simply let your Village Manager know so we can keep an eye out for your guest(s) and treat them as part of the RetireAustralia family.