Seven questions to ask before entering a retirement village contract.
The team at Watkins Tapsell have extensive experience dealing with retirement village contracts and have put together a comprehensive list of things to consider before signing a retirement village contract.
- Is the level of care right for you or your family member? Once you enter a village there are financial consequences for leaving, so it is important to make sure it is the right place for you.
- Have you done your numbers? How much do you have to pay upfront? What are the ongoing fees? How much does the village retain when you leave? Will they charge you to refurbish the unit when you leave?
- What is the departure process? Is there a departure fee? What portion of your ingoing contribution will the village keep?
- Are you entitled to a portion of the capital gain? If so, will the village sell the property for you or are you responsible for selling it yourself? It is sometimes difficult to sell a unit in a village, especially if the village has new units available.
- Do you need to sell your home? It is important to make sure that the contract allows you time to sell, and to coordinate your purchase into the village with your sale. Often using the same law firm to undertake your sale and purchase can assist with this process.
- Are you a couple entering a retirement village? If there are two of you going into the village, what will happen if one of you gets sick or passes away? Have you considered if you can afford a nursing home place? Have you updated your wills?
- Have you sought independent financial advice? Retirement Village contracts have significant financial consequences, including on your pension, and it is important to make sure you are structuring your move in the best way.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.