Buying a home in a retirement community is a popular choice for many older Australians, as the perks that come with such a choice are well known. Many people appreciate the built-in facilities, safety and security features, no maintenance, access to social activities and community feel that a retirement village provides. However, when considering your retirement options, you also need to know that you’re spending your money wisely. Of course, housing costs are an unavoidable part of living, whether you rent or own your home or live in retirement facilities. Obviously, you are going to be paying housing costs in whatever situation you live – it’s just a matter of how much.

So, you definitely need to consider whether retirement villages are worth the money – after all, you’re the one paying for it! Here are a few factors to consider.

Are Retirement Villages Worth the Money?

Factor	Retirement Village Living	Traditional Home Ownership
Home maintenance	Maintenance may be included depending on the community and agreement	Owner generally arranges and pays for maintenance
Garden maintenance	Often included or available through community services	Usually the homeowner’s responsibility
Community facilities	May be included as part of the village	Usually requires separate access or membership
Social activities	Community-based activities may be available	Depends on local community and personal arrangements
Security features	Villages may include security and emergency systems	Depends on the individual property
Housing arrangement	Can involve a lease, licence to occupy or other arrangement	Usually ownership of the property and land
Ongoing costs	May include recurrent or maintenance charges	Mortgage, council rates, insurance, maintenance and other property costs may apply
Lifestyle	Designed around independent retirement living	Greater independence over location and property use

Retirement living makes financial sense

In Australia, retirement village living remains affordable in today’s economic climate. The average retirement village home costs around 64% of the price of the average two-bedroom home, making it a cost-effective option. However, keep in mind that the financial side of things works a little differently in retirement communities. Potential residents have options to occupy a retirement home under a long-term lease, to buy a home outright or to purchase a licence to occupy. General services (including electricity, sewerage, water, gardening, building insurance and maintenance, administrative services, communal facilities, emergency nurse call etc.) are usually included in this package.

As well, you’re only paying for the home, and not the cost of the land, making it a much more affordable option for people often living on a downsized income. It can be a significant area of saving for people who no longer want to pay for the costs of living in and maintaining a large family home. To make the deal even better, there’s usually no stamp duty to pay, no council rates or taxes, and no strata maintenance fees to cover. What this adds up to is housing costs that are likely to be less than they were before you retired.

So, when you look at the return on investment, it’s clear to see that retirement village are indeed worth the money you pay. In return, you’ll get a home which gives you everything you need, at a lower cost than you’re likely to pay for other types of home. This will free up some of your finances that you can use in other areas of your life.

Retirement Village Costs to Consider

Cost or Financial Factor	What to Check
Initial payment	Determine whether you are paying an ingoing contribution, purchase price, licence fee or another amount
Ongoing charges	Check recurrent or maintenance fees and how they are calculated
Utilities	Confirm which utilities are included and which are separately charged
Maintenance	Establish which building and garden maintenance costs are covered
Insurance	Check whether building insurance is included and what contents insurance you need
Exit costs	Understand any retention, departure or other deductions
Resale or refund	Check how and when money is returned when you leave
Capital gain	Determine whether residents share in any increase in the home’s value
Legal costs	Obtain independent legal advice before entering an agreement
Government charges	Confirm which taxes, rates or duties apply to your specific arrangement

Retirement living makes practical sense

Living in a retirement community is also worth the money from a practical sense as well. As you get older, the tasks of caring for and maintaining your home and garden can become increasingly more difficult. That’s where retirement community living adds real value, as all those boring and physically demanding tasks will be taken care of for you. And yes, it comes

at a cost, but most retirees will agree that gaining freedom from performing these tasks is money very well spent. Not only will it make life physically easier for you, it will also free up your time to spend on other, far more interesting things. And after all, isn’t retirement meant to be about living the life you choose?

Retirement Village vs Owning a Traditional Home

Consideration	Retirement Village	Traditional Home
Land ownership	Depends on the village agreement	Usually included with property ownership
Maintenance responsibility	May be handled by the village	Generally homeowner responsibility
Garden	May be maintained by the village	Generally homeowner responsibility
Community	Built around shared community living	Depends on neighbourhood
Facilities	Village may provide shared facilities	Usually arranged independently
Security	May include village security features	Depends on individual property
Flexibility	Governed by village agreement	Generally greater control over property
Exit arrangements	Determined by village contract	Determined by sale and property market
Capital growth	Depends on ownership/occupancy arrangement	Owner generally retains property capital growth
Ongoing fees	Village-specific recurrent charges may apply	Rates, insurance, maintenance and other costs apply

Retirement living makes lifestyle sense

Which brings us to the lifestyle investment you’ll be making when you move into a retirement community. It’s really a lifestyle choice, with retirement villages offering attractive, village-style living with all the perks of an in-built social network and activities. You’ll have the opportunity to live amongst like-minded people of a similar age, and to enjoy the safety, security and peace of mind that comes with life inside such a community. You’ll also get to enjoy plenty of freedom. As mentioned above, you’ll have freedom from home and garden maintenance, as well as freedom from loneliness and social isolation, plus the freedom to simply lock up your home and go travelling or visiting whenever you want. For many retirees, their ideal retirement lifestyle can be found inside a retirement community – making it a very worthwhile investment.

So, there you have it – when you consider it from a few different perspectives, retirement village living is well worth the money you’ll spend. You’ll gain financial, practical and lifestyle benefits that make retirement community living an outstanding choice.

Have a look at all the benefits you can find at Alumuna’s retirement living community here: https://www.alumuna.net.au

Practical Value of Retirement Village Living

Retirement Living Feature	Practical Value
Home maintenance	Reduces the physical work associated with maintaining a property
Garden maintenance	Reduces routine gardening responsibilities
Single-level/no-step design	Can make everyday movement easier
Community environment	Provides opportunities for social interaction
Security features	Can provide additional peace of mind
Emergency call provision	Provides an additional support feature
Travel	A maintained home can make it easier to leave for extended periods
Community activities	Creates opportunities for social and recreational activities
Support services	Some communities can help residents access additional care services