Retirement villages are in huge demand from older Australians, especially as there is a big rise in people over the age of 65
There are different types of retirement accommodation you can choose from that best suits you and your financial circumstances
Some retirement villages are attached or close by to an aged care facility, so you can easily transition over when you need to
Whatever you want to do, where you choose to spend your retirement is just as important as how you spend your retirement, and more people are opting to live in a retirement village.
According to the Property Council of Australia, in 2014, there were more than 2,300 retirement villages in Australia and around 184,000 seniors living in retirement villages. However, that figure is expected to double with some predicting as many as 382,000 people will be living in retirement villages by 2025.
Retirement villages are housing developments offering a range of accommodation options, services and facilities.
These vary from swimming pools and golf courses to social events and 24-hour emergency assistance.
You may also be attracted to the opportunity to downsize into a like-minded community with additional benefits while maintaining your independent living lifestyle.
Although there are other costs associated with retirement villages, properties are often cheaper than similar sized homes in the same area.
Some villages also have rental properties, meaning you can still enjoy the benefits of retirement village living without having to own the home.
Types of retirement villages
There are two types of villages in Australia offering ownership and rental opportunities.
Owned and operated by the private sector, or by a not-for-profit organisation on a commercial basis to produce a profit or surplus
Funded by the residents who ‘purchase’ their villa or apartment under one of the tenure arrangements
Residents also contribute to the village’s capital infrastructure cost and ongoing management costs
Normally owned and operated by not-for-profit organisations
Include an element of charitable subsidy
Entry is generally restricted to the ‘needy’
Usually, villages will have an option to either rent or own a home in their retirement village.
Types of retirement properties
Villas and ILUs
Villas, sometimes referred to as Independent Living Units (ILUs), are designed for when you require little or no assistance with daily activities, but want to enjoy the benefits of living in a retirement community.
Properties range from one to four bedrooms and come in many shapes and forms, varying from high or medium-rise complexes or terrace housing arrangements to a stand-alone or semi-detached building.