Moving on to the next chapter…

by Louise Aitken
7th October 2024

ARE YOU CONSIDERING moving into a Retirement Village or Residential Aged-Care Facility?
This will be a time of significant change for you.
Here are some helpful tips for you to consider before making the move.

Get financial and legal advice

It is essential to work with your financial advisor to seek the appropriate advice about how moving into a Retirement Village will financially affect you and your estate.
There are a number of different arrangements in which a Retirement Village can be purchased.
You should note, regardless of the option, there will be departure fees payable upon you vacating and the contracts require careful consideration and review by a Property Lawyer.
Once the review is complete, you will likely have further questions, and the documents may require further clarification and discussion.

What fees will be payable when I move into a Retirement Village?

In addition to the Ingoing Contribution Fee, you will likely be charged the following fees:

  • A monthly service charge is usually payable, and if you are purchasing a freehold title, there will likely also be a monthly owner’s corporation fee, rates, and water charges.
  • Additional services may be available at an extra charge, including laundry, meals, medical services, and hairdressing.

Things you may wish to consider when choosing a Retirement Village

  • Can I take my pet, and if so, what are the restrictions for what type of pet?
  • What type of Security is offered?
  • What services and amenities are offered?
  • How much is the monthly service charge, and what does this include?
  • Is there a carport or garage included?
  • Is the settlement date flexible, or do I need to sell my home first?
  • What are the by-laws and covenants that I must adhere to?
  • Do I share in any capital gain/loss when it comes time to vacate?
  • Is there an onsite residential or aged care facility?
  • What are the departure fees, and how are they calculated?

Cooling-off period

The prescribed cooling-off period for Retirement Villages is 21 days and usually starts from the date you receive the disclosure statement, and all associated documents are delivered to you and your lawyer, if applicable.
A holding deposit is required during this period, and it will most likely be a minimal amount of $1,000–$2,000.
Alternatively, you may want to move into a residential aged care facility.
It is important to recognise that not all residential aged care facilities are the same, so it is imperative that you undertake the appropriate research to determine which one is right for you.
You may even consider booking a respite or a short-term stay to experience the facility and get to know the staff.

Things you may wish to consider when choosing a residential aged care facility

  • Does the facility as a whole meet your unique needs?
  • What is the staff-to-resident ratio?
  • What type of care do they offer, and does it meet your requirements?
  • What services and activities are on offer, and are they relevant to you?
  • When are the scheduled activities, visiting hours, mealtimes and bedtime?
  • Are the buildings, gardens and grounds well maintained or in need of repair?
  • Are the staff friendly and courteous?
  • What are the fees you need to pay for care and additional services?

One of the challenges of the Australian aged care system is navigating and understanding the various costs and options available when going into a residential aged care facility.
Depending on your assets and income, the government may partly or fully subsidise the accommodation costs.
Accommodation costs can vary between facilities, depending on the quality of the accommodation and the services offered.

Costs that you may need to pay to reside in a residential aged care facility

In addition to the accommodation costs, other costs that may be payable include:

  • A basic daily fee
  • Means-tested care fee
  • Additional service fee
  • Extra service fee

Moving into an aged care facility is a big financial decision, so it is imperative that you seek the appropriate financial advice prior to signing any agreement.
Whether you are planning to move into a Retirement Village or Residential Aged Care Village, it is important to do your research to ensure it is the right option and place for you and to obtain the appropriate financial and legal advice to enable you to make an informed decision.
Once you make the move, sit back and enjoy this next chapter of your life.

Madison Sloan Lawyers will be hosting an Are You Ready for the Next Chapter Downsizer Event at their office in Park Orchards on Wednesday, November 13, at 6pm
Louise Aitken is Conveyancing Manager and Melisa Sloan, Lawyer at Madison Sloan Lawyers, Park Orchards.
For more information, go to madisonsloanlawyers.com.au.