How are Costs Handled If a Retirement Village Is Not for You?
Posted on: 1 September 2022
If you are approaching retirement age, you may look for a simpler life and consider downsizing to a managed facility. Many people in your situation look at retirement villages, many of which are in your state or territory. Yet the decision to move into such a facility is not one to be taken lightly, and there are many legal and financial factors to consider. Crucially, how are the costs handled, and what should happen if you change your mind shortly after entry?
Assessing Your Situation
It's not unusual for people in your position to be uncertain and to worry whether they will fit into any new retirement village. Certainly, these places offer a degree of independence compared to a retirement home, with other advantages as well. Nevertheless, you'll want to know what happens if you are unhappy with your move and want to go elsewhere. In this case, how will this affect your rights under the contract and any financial contributions you may have already made?
Entry and Exit Fees
Your rights will be covered by legislation in your state or territory, such as the Retirement Villages Act in South Australia. This outlines how your "entry" money, sometimes called the ingoing contribution fee, is handled and whether or not you'll have to pay any relevant "exit" fees. Usually, you will be able to recoup your ongoing contribution fee if you decide to move out during the first three months. However, you will still be liable to pay for rental costs during your occupation. If you decide to move out after that time is expired, you probably need to pay some exit fees to compensate the retirement village. This will help them refurbish the unit as needed and cover the remarketing cost for a replacement occupant.
Ongoing Costs
In addition to entry and exit fees, retirement village residents will also have to pay ongoing costs for maintenance. These are usually collected monthly and, in addition to maintenance, include taxes or rates payable to the local government. If you previously lived in an apartment or condominium, you may be familiar with these costs, as they are typically referred to as strata charges in those situations.
Getting Support
You may be running into some issues with the management team if you have entered a retirement village and decided it's not for you. If so, you should seek help from a legal team and a lawyer who specialises in retirement village problems.
For more information, contact a local retirement village lawyer.
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