Types of Retirement Villages

Traditional retirement villages are usually gated and have on-site management which translates to peace of mind and security. Featuring beautiful homes within picturesque grounds, BaptistCare’s retirement villages are well-maintained properties with gated security.

You’ll be able to form new friendships and engage in social activities with like-minded people. BaptistCare actively encourages residents to come together and host meals and celebrations, using the villages’ alfresco BBQs and dining areas.

Many villages, including most BaptistCare properties, now allow pets. Check out the village’s pet policies and ensure you understand the approval process.

You buy the right to live independently in the property, not the property itself, and therefore, you will never ‘own’ your retirement living home.

You need to sign contracts, which can be quite complicated. Professional advice will help you understand them.

You will need to pay a range of different fees. These generally include things like entry fees, recurrent fees and deferred management fees.

The costs associated with BaptistCare’s NSW and ACT retirement villages are available on our website Retirement Villages Financials Explained | BaptistCare

The costs associated with BaptistCare’s WA retirement villages are also available on our website Retirement Living Financials Explained (WA) | BaptistCare

Retirement villages have rules and policies. These typically cover things like modifications you can make to your living space, visitors and whether you can have pets.

Rental retirement villages offer a secure community with an onsite manager.

Your unit will be simply furnished and have basic cooking facilities. Unlike traditional home ownership. you can rent it week by week on either a permanent or temporary basis with no lock-in contract. Electricity and water are usually included in the rent, as can be support services such as laundry.

Rental retirement villages can also provide a sense of community, as you will be living amongst others in a similar situation.

Rental retirement villages are less common in Australia, making them harder to find. Most are located in regional towns, which may mean living further from family and friends.

Basic support services are available. However, if the village doesn't operate  as traditional retirement villages like BaptistCare, they are not required to provide assisted living options. Their only legal responsibility is to offer accommodation.

While some operators may have a program of social activities, help organise home care services and aim to provide nutritious meals, the truth is that unless they are also traditional retirement village operators, they don’t have to.

Although there is no lock-in contract, every operator will have its own rental agreement and rent can be as high as 80% of the aged care pension.

These apartments might appeal if you want to continue to live independently but find daily tasks like cooking and cleaning increasingly challenging. While smaller than traditional retirement village units, they support ageing and are more affordable.

Being part of a retirement village means you'll enjoy the company of those around you and have access to social activities, support and care as you age.

Many villages like BaptistCare have an aged care facility on-site or nearby, making a transition into aged care, if needed, easy and convenient.

Availability could be problematic, as most retirement villages don’t offer assisted living apartments. If you do secure one, you won’t own it, you will rent it via an upfront fee, which acts as a form of rent in advance.

While assisted living services are available, you'll pay for them via weekly charges. Additional fees for laundry, cleaning, and meals will apply.

You'll need to sign a contract upon entry, similar to a traditional retirement village unit, and pay a deferred management fee when you leave, which can be as high as 40% of your upfront fee.

Instead of paying an entry fee, you will buy your building and rent the land, so you will enter into a rental contract. Centrelink may subsidise your rental costs if you are on a full or even part pension. You can sell the building when you leave and any capital gain will be yours.

Most land-lease villages have gated entry and on-site management, which aids security.

Land-lease village operators might not be actively involved in encouraging or helping to organise social activities.

Some land-lease villages may allow you to keep pets, in line with their rules and policies.

One of the big considerations with land-lease villages is that operators are not subject to the same legislation as traditional retirement village operators like BaptistCare. Therefore, Land-lease villages are under no obligation to support ageing or provide assisted living. Land-lease villages are also not usually located close to residential aged care facilities making moving to one, if necessary, potentially difficult.

You will have to pay for your building and its ongoing maintenance, just as you would if you bought a home outside a land-lease village. You will also be responsible for looking after your own garden.

You will need to sign a rental contract, which can be complicated. As well as paying rent for the land your home sits on, you may pay other fees to support the village's infrastructure. Operators set the fees and can vary them as they see fit. Some operators also charge a departure fee or Deferred Management Fee (DMF). Professional advice will help you understand your contract.