10 Common Questions About Retirement Villages
Making the move into a retirement village is no small change, and many retirees have similar questions for the villages they consider moving into.
Whether it’s about retirement village eligibility, exit and entry fees, the value of your investment, restrictions, or any other concerns, we’d like to answer some of our frequently asked questions to give you an insight into Serene Retirement Living;
Other than being over 55, what eligibility do you need to meet to move into Serene Retirement Living?
That’s it, that’s the only retirement village eligibility you need to meet. You merely have to be over 55 years of age.
Who can you sell your apartment to if you move out?
We offer our services to sell the apartment on to an eligible person on your behalf, or you can do it yourself. The only stipulation is that it must be to somebody over 55.
What is the process for selling your apartment if you move out?
The unit would usually go onto the open market. You have the option to choose whether we handle the sale or to go with a real estate agent. However, with our desirable location with so many amenities on the doorstep, it’s often the case that we have a waiting list of people interested in investing in that particular apartment.
Can you leave the apartment as a retirement village investment to a family member in your will?
Unfortunately, because these retirement apartments are sold under a 99 year lease, the unit must change hands. While the unit can’t be left to someone in a Will, the proceeds from the sale of the unit can.
How is the value of the apartment expected to change over time?
Capital growth is always determined by two things; location and supply/demand. With so many baby boomers on the Gold Coast, the demand is certainly there and we have a fantastic location with shopping centres, hospital, bowls club, airport, river and ocean all on our doorstep.
Is there a retirement village entry contribution, or is it part of the apartment price?
Residents buy into our units under a 99-year lease structure, the benefit of which is there’s no stamp duty on the purchase price. So really it is just the price of the unit itself – no extra retirement village entry contributions.
What retirement village exit fees are there?
Most people know of this as an exit fee but the correct term is a deferred management fee which explains what it does perfectly. Our operators manage the retirement village, providing the facilities for you, and at the end of your time here that’s what comes back to us out of the sale price of the unit at a percentage.
That percentage is 7% per year, capped at the fifth year. So, the maximum deferred management or exit fee you will pay is 35% of the price of the retirement unit. This is offset by the fact that residents are entitled to 100% of the capital growth of the unit price.
How do your exit fees differ from other retirement villages?
This 35% deferred management fee is an industry average in Queensland. Deferred Management fees have been around for about 30 years. They have proven to be very effective in providing a quality of life that would not have been otherwise possible.
What are the exit fees for?
As mentioned previously, the exit fee is used to maintain the operation of the retirement village. This includes cleaning, building maintenance and that of the onsite facilities.
Because you are paying at the end of your time with us, deferred fees allow us the opportunity to provide exceptional lifestyle facilities. This means a level of luxury, safety and wellbeing, without having to add a substantial premium to the purchase price.
Serene Retirement Living
Hopefully, this has answered some of your questions about us.
For more information, you can read about our rooftop garden, village features, see floor plans, arrange a tour or call us on 07 5536 6820 with any other queries about Serene Retirement Living.
