Just like any property purchase, purchasing into a village is a big financial commitment. Ensure you know the financial ins and outs of each retirement village, as they can vary from village to village and region to region, so ensure you get specialist legal advice. Here are some things to think about from a financial perspective:
Financial stuff
- What is the initial cost of entering the village? Aside from your dwelling, what else does this cover?
- Will buying into a village tie up all your money? Or will you still be able to afford to do the things you enjoy?
- How much are the regular fees? What do they cover? Can you choose to only pay for specific services?
- Are the fees ‘fixed for life’ or will they increase? If so, by how much and how often? Do you have a say in this?
- What does the village insurance cover? What do you need to insure? Who pays the excess?
- What happens to the fees if you go into hospital, go on holiday or the number of people in your dwelling changes?
- What are your other personal costs? Power, telephone, paid television etc.
- People can move within a village several times and each move incur costs. Do you have a contingency fund?
- What would happen if you ran out of money?
Find more helpful articles about how to choose the best retirement village for you on our Knowledge Lab. Alternatively, download our checklist to help you on your search.
Updated: 11 Jun 2024