Most people make an upfront payment when they enter a retirement village. This payment may:
- be described in the retirement village contract in a number of different ways (for example, as an interest-free loan or a refundable deposit)
- include an amount that may be refunded
- be required even if you are not buying your own unit in the retirement village.
This ingoing contribution is the largest single payment you are likely to make and secures your right to occupy the premises.
If you do not make a payment, you still have a right to use the services and facilities defined in the contract.
Your right to use the services and facilities defined in your contract is binding on the owner of the retirement village, regardless of ownership changes. This right cannot be taken away if the village is sold.
What do I get back when I leave the retirement village?
If you own a strata title retirement village unit:
- you will get the proceeds of selling your unit, less departure fees. These can be substantial
- your investment is secured by your own land title, as with any property purchase.
If you do not buy your own unit, some or all of your ingoing contribution may be refunded to you or your representatives when you leave. This amount is secured against the retirement village land if your ingoing contribution, or that of any previous resident of the retirement village, contains a refundable portion of more than $10,000. This applies even if the retirement village changes hands.
For more information about leaving a village, view our Deferred, departure and exit fees page and our Leaving a retirement village page.
Last updated: 30/04/2012