Pros and Cons of legal title options in retirement villages.

In many ways, buying a retirement village unit is even more complicated than buying any other type of residential property.  There are different forms of legal title and occupancy rights available, there is the ongoing cost of services and maintenance of facilities in the village, and then what fees, charges or capital gain sharing may apply when the unit is sold again later on. Different transaction costs may or may not apply to a purchase, such as stamp duty, lease registration fees and a village operator’s legal costs.

While these legal and financial complexities should not detract from the benefits of village living, it is very important to obtain legal advice before you buy a retirement village unit. You need to be fully informed of all the costs and issues which may arise and ensure there are no surprises or unanticipated problems later on.

Seniors Housing Online has been fortunate to talk to Richard McCullagh BA LLB, a very experienced NSW solicitor who has specialized in retirement village law for the past 25 years, previously working for village operators and who now works for village residents (or prospective residents).  He has seen huge consolidation in the industry in the last 5 years as well as keeping up with ever-changing government regulation.

We asked Richard to answer some common questions about buying a retirement village unit, including the pros and cons of the different types of legal title and occupancy arrangements.

Read the article on the Seniors Housing Online News page.

Seniors stamp duty exemption ends 30 June 2012.

You can save up to $22,490 in stamp duty when you buy a newly constructed home or an off-the-plan purchase before 30 June 2012 in NSW, if you are eligible for the senior's principal place of residence exemption.

To be eligible you must be aged 55 or over; have owned and occupied a home in NSW for the past 12 months which you are selling and must occupy the new home for a continuous period of at least 12 months. 

For more information and relevant links see the Seniors Housing Online News and Information page.

Downsizing - are you eligible for stamp duty exemptions?

Are you thinking of downsizing but not yet ready to retire from work? This could be a good time to consider moving as you may be eligible for stamp duty exemptions if you are over 55 and you buy a new home before June 2012.

This  means you could consider downsizing but enjoying the convenience of staying in your current neighbourhood close to family and friends and familiar shops, professionals and services. You will find a wide range of retirement village units and other specialist "over 55"property available if you search by area on the Seniors Housing Online website.

Or you may want to search for that idyllic retirement spot in one of your favourite holiday destinations to enjoy a life of leisure, it's all made easy on the Seniors Housing Online website.

You can take advantage of the current market conditions and the stamp duty exemption by downsizing sooner rather than later - get the benefit of downsizing the mortgage immediately, reduce your home maintenance workload, and enjoy a low maintenance "lock up and leave"  lifestyle so you can travel more and have more leisure time.

Research your options now! You can also sign up for free property alerts so you get an email notification when a new property comes up in your area of interest.  Everything from luxury resort developments to retirement villages, over 50's villages, villas and apartments for all budgets, in all areas. Even rental retirement villages are available as well as units for purchase. 

Also private sales and re-sales are featured too - and it's easy to sell your own property for a simple flat fee.  No commission - you communicate directly with potential buyers or tenants if you advertise your property on www.seniorshousingonline.com.au


More details on the Seniors Housing Online News and Information page.

NSW stamp duty concessions for seniors.

Seniors Housing Online, Australia’s leading retirement living website welcomes the NSW Government’s introduction of stamp duty concessions for downsizing seniors, although the impact is limited as many seniors aged 65 and over choose established properties rather than new builds, or want to move to retirement villages or other age specific housing where stamp duty is not applicable in any case.

If the NSW Government is serious about creating effective incentives to free up existing housing stock then this concession needs to be extended to existing housing as well as new builds, the age threshold should be reduced to 55, and consideration given to making age specific accommodation such as retirement villages more financially attractive where property stamp duty does not apply.

There are more than 20,000 seniors a month searching the website www.seniorshousingonline.com.au for retirement accommodation to buy or rent – 12% are looking for a luxury apartment or villa; 26% are looking for a new villa in a village setting and 28% are specifically looking for a retirement village unit.

‘Over 55’ developments differ from other residential properties as they are structured with a variety of legal title arrangements with many offering a type of long term leasehold interest rather than freehold or strata title ownership. So the stamp duty payable on the purchase of a residential house will in many cases not apply to a retirement property.

The benefits of downsizing to age specific housing include the security of knowing support services are available in the future should they be needed, as well as providing a resort-style environment, a sense of community and security and freedom from household chores and property maintenance.

Seniors Housing Online website visitor surveys show seniors are overwhelmingly looking for independent living, with 75% saying this is essential and 21% saying it is desirable. 80% want a village setting; 67% a clubhouse or recreation centre; 59% a swimming pool and 49% a gym. But at the same time, 50% say two or more bedrooms is essential and a further 35% say it is desirable; 88% still want garages and parking spaces; and 58% want pet-friendly accommodation.

The reality is that while people want to downsize the mortgage or access their equity in the family home, they don’t actually want to downsize their lifestyle in retirement. People are prepared to move away from family and friends to achieve a better lifestyle at a price point they can afford, with 43% saying remaining in the same area doesn’t matter; 35% saying it is desirable and only 22% considering it essential.

These are the factors influencing housing choices which must be taken into account if we want to encourage seniors to free up their larger family homes and make more housing stock available.