Retirement village living is becoming an increasingly popular choice in New Zealand. According to Eldernet More than 53,000 people currently live in villages nationwide and that number is expected to grow significantly over the coming decade. For many, villages offer peace of mind, companionship and freedom from home maintenance. But as with any major life decision, it’s important to carefully consider the options to ensure you make the choice that’s right for you.
There are more than 400 retirement villages across the country varying in size, location, facilities, ownership and cost. The key is finding a village that suits not only your lifestyle today, but your potential needs in the future.
Explore the options
Before committing to a particular village or unit, visit more than once. If possible, compare several villages to get a sense of how they differ in atmosphere, management style and community culture.
Talk to residents. Ask about their experiences. Observe how staff interact with people. Attend a social event if you can. Each village has its own rhythm and personality and that “feel” matters just as much as the facilities on offer.
It’s also wise to seek independent legal and financial advice early in the process. Buying into a retirement village is different from purchasing a traditional home and understanding the structure is essential.
Facilities and services
The lifestyle facilities on offer can vary widely from village to village. Think about what you would like to have within a short stroll from your home. From communal living and dining areas to swimming pools, gyms, hair salons, classes and more, it’s important to find the right fit for you. Keep in mind that having more facilities on offer could result in higher weekly fees.
From laundry to light housekeeping assistance and meal delivery, most retirement villages offer a selection of add-on services you can request for additional fees. Then there are all the services that are included in your fees, such as maintenance of communal areas/facilities and external home maintenance.
Village ownership and accreditation
Villages operate under different ownership models. Some are run by large listed companies, others by private operators or not-for-profit trusts. Ownership can influence everything from management style to long-term development plans, so it’s worth asking about the operator’s experience and reputation.
Check whether the village is registered and whether its accreditation is current. Many villages belong to the Retirement Villages Association (RVA), whose members must comply with the Retirement Villages Act 2003 and the Code of Practice. RVA members are audited regularly and residents are covered by the Code of Residents’ Rights and formal dispute resolution processes.
Not all villages are required to be registered, however. Some non-registered villages operate under freehold or unit title arrangements instead of Occupation Right Agreements, which may offer different financial structures but fewer protections under retirement village legislation.
Will the property suit your long-term needs?
Retirement villages offer a range of accommodation options, including villas, townhouses, apartments, studios and serviced apartments. Whichever option you choose will become your home, so it needs to feel right. Downsizing can be liberating but it’s also a big adjustment that requires careful consideration and organisation.
Consider:
- Does the size and layout suit your lifestyle?
- Will your furniture and most treasured possessions fit?
- Are there accessibility features such as non-slip flooring and easy-reach switches?
- Is there adequate storage and parking?
- Is there an emergency call system?
- What is the policy on pets?
- Can you personalise any outdoor space with plants or ornaments?
Level of care and support on offer
Often people move into villages while still relatively independent. However, as needs can change, most retirement villages offer residents a continuum of care with clear healthcare pathways available. For example, the opportunity to switch from independent living to more assisted living if needed. This flexibility can bring peace of mind for those wanting to stay within their community and avoid the stress of finding new accommodation when they are experiencing ill health. Keep in mind that if you require residential care at some stage in the future, standard aged residential care fees around $1,400 – $1,700 per week for standard care may still apply.
Not all villages offer the same level of support, so it’s important to ask:
- Is care available onsite?
- Is there a nurse on duty 24/7?
- How are care needs assessed?
- Can you receive publicly funded home support?
- Is there an onsite care home and would you receive priority access?
Some villages offer serviced apartments, which typically include meals and housekeeping for residents paying privately. These differ from care suites, which provide higher levels of clinical care.
The legal structure of what you are buying
In most retirement villages, you don’t purchase the unit in the traditional sense. Instead, you pay a Capital Contribution in exchange for the right to occupy the property under an Occupation Right Agreement (ORA).
The ORA outlines your rights and responsibilities, as well as those of the village operator. You will also receive a Disclosure Statement, the Code of Residents’ Rights and details of the Retirement Villages Code of Practice.
Because these arrangements can be complex, independent legal advice, ideally from someone experienced in retirement village law is essential. There is also a 15-working-day cooling-off period after signing an ORA, allowing you to cancel without penalty if you change your mind.
Financial Considerations
Village living involves more than just the upfront entry cost. With many retirement village properties, after you leave and your property is sold, a Deferred Management Fee of 20 – 30% of the value at your time of purchase is paid back to the village to cover its’ management costs. This means there will be no capital gain for you or your estate.
Be sure you understand:
- What the entry payment covers
- Ongoing weekly fees, from $120 up to $250 per week
- Monthly fees for your individual property such as utilities
- Whether fees increase over time
- Insurance responsibilities
- Exit fees and how they are calculated
- Whether you are entitled to any capital gain (often you are not)
- Costs associated with moving within the village
The pros and cons
Many retirement village residents value the security, reduced maintenance and the built-in social opportunities on offer. There can be comfort in knowing support is nearby and in having access to shared facilities and activities. For people who choose a retirement village over moving to a privately owned smaller home, these benefits outweigh the loss of capital gains.
However, communal living is not for everyone. Some people prefer greater privacy or flexibility. Others find the financial structure, particularly deferred management fees and limited capital gain is off-putting.
There are also village rules to consider and varying levels of resident input into decision-making.
Making the right choice for you
Retirement village living can offer freedom, companionship and peace of mind if the village you choose aligns with your values and expectations.
Take your time. Visit more than once, compare options and ask detailed questions. Seek specialist advice and think about both your current lifestyle and your possible future needs.
Most importantly, remember that this is about choosing a home and a community that feels right for you.
