Buying a retirement village unit - new standard contracts.

New standard contracts are being introduced for retirement villages.  Standard form contracts have been in place for many years when buying or renting other types of residential property in Australia, and now they are being introduced for retirement villages too.  The NSW Minister for Fair Trading has announced their introduction in New South Wales, and has invited comments on a draft before 18 May 2012.  Victoria is also currently reviewing the issue.

Deciding to sell the family home and move to a retirement village or other type of over 50's property or community may be the best lifestyle decision you ever make - but it is also a major financial decision, so like any other major investment, you need to get expert advice and make sure you are fully informed.  

Buying a retirement village unit is not the same as buying other residential property, as there are many different forms of legal title and rights to occupy which may apply. Arrangements vary considerably from village to village, so it is important to shop around to compare all the costs and facilities, not just the purchase price and type of legal title.  The introduction of standard form contracts will make it easier to make comparisons and understand what is involved.  But most importantly it is essential to get specialist legal and other advice to make sure you fully understand the financial implications - including if stamp duty applies, if any ongoing or deferred management fees or share of capital gains apply, and what is involved when you move out or sell your unit.

Read more on the Seniors Housing Online News and Information page.