Are you looking at moving into a retirement village, but worrying you might not be able to afford the upfront costs? There may be a solution for you: rental villages.
Retirement rentals can either be part of a normal retirement village – combining rental units with “owned” units – or part of a dedicated village offering solely units for rent.
Unlike a traditional retirement unit, which you buy up-front and then sell when you move out, attracting a Deferred Management Fee as you do, renting a unit works exactly the same as renting a normal house or apartment.
You pay rent (usually a certain percentage of the Age Pension) on a regular basis, with meals and various services such as a village manager included, and there are generally no extra monthly service fees or incoming contributions, making it far cheaper than buying.
Because you’re renting, you may also be eligible for Rent Assistance from Centrelink, and many rental villages will also means test potential residents to make sure the affordable options are going to people who need them.
Even if you’re planning to live in a traditional retirement village or land lease community, renting can be a great option if you’re waiting on your house to sell, which can take up to 12-18 months depending on the house and the area. As an extra plus, it gives you the chance to see if that village is right for you before you buy.
Renting can be an excellent way to gain all the benefits of a traditional retirement village – such as the services and the community – without big upfront fees, and rental options range from budget to premium; you’ll often find rental villages in regional or outer metro areas.
There are more than 300 dedicated rental villages in Australia, run by operators such as Ingenia and Eureka – check villages.com.au to find out if there are any near you.
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