Top Tips When Buying Property In A Retirement Village

Retirement villages are a preferable housing option for senior adults. They enable seniors to interact and enjoy old age with like-minded people. The article below discusses the various considerations senior citizens should make when purchasing units in a retirement village. 

Lease, Rent or Buy? 

Your first consideration should be the terms of occupancy. The company running the retirement village may lease, rent out or sell units in the village. Rent is a preferable option for people who intend to live in the village for a short time. Buying and leasing are ideal for long-term occupancy. When leasing a unit, check the terms of extension and whether the company will increase the rent after renewing the lease. 

Title

The retirement village title may have a leasehold, strata title or company title. Check the conditions of the title. For instance, what kind of renovations should you make on the property? You may be prohibited from changing the colour of your building's exterior or the type of fence. A strata title will determine the use of common areas. For example, how many parking slots does each tenant have? Is the swimming pool restricted to residents only? Are residents allowed to keep pets? These are vital concerns that may encourage or deter you from leasing, renting or buying a property in the retirement village.

Charges

Other than the standard rental fee, ask about extra charges. For example, you may be required to contribute a specific amount that will go towards the maintenance of common property and property insurance. Some retirement villages will ask for an annual membership fee to use facilities such as golf courses and tennis courts. You will also have to pay for services such as health care and home maintenance. 

Terms of Exit

Examine the conditions of exit. For instance, are you allowed to terminate the leasehold period prematurely? Check whether the company can kick you out of your unit. Ideally, they should give you a few months' notice before eviction. 

Another concern would be whether you can sell or sublet your unit in the retirement village. Some companies will handle the buying and selling process. You may or may not be entitled to capital gains on a unit you intend to sell. 

Engage a conveyancing solicitor before signing any retirement village contract. The professional will explain the various clauses and advise whether you will get value for your money by purchasing a unit in the complex. Further, he or she will negotiate the asking price and the terms of the contract of sale.

When buying a home in a retirement village, examine the terms of occupancy, type of title, charges and conditions of exit. A conveyancer will guide you through the process.

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