Over 55s & Retirement Living in Australia

Retirement and over-55s communities are sold under several different legal structures, and they are not interchangeable. Some are strata title, where you own the dwelling much as you would any apartment. Others are leasehold or licence arrangements, and land-lease communities involve owning the home while leasing the land beneath it. Each has different implications for what you pay up front, what you pay ongoing, and what you receive when you or your estate eventually leaves.

The exit terms deserve as much attention as the purchase price. Deferred management fees — sometimes called an exit fee or departure fee — are common, accrue over the years you live there, and are deducted from the amount returned on departure. Whether any capital gain is shared, who pays for reinstatement, and how long the operator has to repay you all vary between communities. These are ordinary features of the sector rather than red flags, but they should be understood before contract, ideally with advice from a solicitor who works in this area.