Downsizing? Five key reasons why people move into a retirement village
Have you retired and found that your living needs have changed? Is the extra space in your home remaining unused and collecting dust? The obvious solution is to find a smaller house or apartment however, another popular way to downsize in a way which brings a range of extra benefits is by living in a retirement village! Retirement villages package an affordable home along with other services and facilities tailored to its residents.
In this article I will outline the top five benefits of living in a Retirement Village.
The proof is in the pudding
A PwC/Property Council Retirement Census performed in 2016 details the various benefits of retirement village living.
A few of the key benefits uncovered by the Census were as follows:
- On average, in Australia, retirement village homes cost 67% of the full price of a home in the same postcode. In Sydney Metro, they only cost 45% of the price of a home in the same postcode;
- The occupancy percentage of each village is also high. In Australia as a whole, each village is at 92% occupancy and NSW with 93%, meaning that you will always have a community to draw on; and,
- 70% of villages also include a ‘Buy back requirement’. This means that on departure, the village guarantees residents that they will buy back the premises if a suitable buyer isn’t found in time.
The top five benefits
- Affordability: As demonstrated by the data above, it is evident that on average, retirement village homes are considerably more affordable than a similar home in the same area. Not only is the premises itself cheaper, many villages also provide access to a range of facilities and services at a more affordable price. For example, facilities such as an onsite gym and other services such as cleaning services can be included in your services payments for an additional fee.
- Better lifestyle: Most retirement villages provide access to a variety of facilities, services and other activities which are designed to keep residents active and social. For example, many villages have indoor swimming pools, gyms, communal centres and bowling greens which are designed to be easy to access and to ensure that residents ‘age well’.
- Community: One of the key benefits of retirement villages is inclusion in a community. The social benefits of having contact with a range of residents who are in a similar stage in their life and who share similar interests can be invaluable.
- Convenience and flexibility: Retirement village homes are relatively low maintenance and common facilities are maintained by staff. You can come and go as you please, with villages often strategically located in areas which have access to services and other amenities.
- Efficiency: Retirement villages also provide efficiency for residents due to the breadth of facilities and services they can provide for the periodic payments which are usually more affordable and accessible than they would otherwise be in the wider community. For additional costs, villages also provide cleaning and meal plan services.
Retirement villages can offer may benefits for residents so it is obvious why many retirees opt to move into one as opposed to simply downsizing. However, it is important to seek legal advice before signing the dotted line so that you can make sure that you understand exactly what you’re signing up for!
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