Posted to The Age (6/12/2011) on 6/12/2011 at 10:39 PM
Commenting on "One woman's experience of downsizing"
http://theage.domain.com.au/moving/one-womans-experience-of-downsizing-20111129-1o49b.html
Does it sound too good to be true? One really needs to read the fine print with big magnifying glass!
Some retirement villages do not allow the units to be sold in private market, that is, they must be sold back to the villages. The resale price is on a staggered rate, depending on the duration of occupation. One may not get back much if it is resold during first couple of years; but even after a decade or so, the resale price is still not 100% of the original price. Yes, you have read it correctly, the resale price is not indexed, and the price is based on percentage of the original price. In short, be prepared for big capital loss!
There is no free lunch too. Utility charges and maintenance fees are payable periodically. If one does not use the facilities in the village, one is throwing good money away for other people’s enjoyment.
There are other disadvantages, too. Most residents in retirement village are not young, and it is likely that within five years or so, more and more neighbours will drop off or move to nursing homes. One starts to wonder when their turn will come.
Commenting on "One woman's experience of downsizing"
http://theage.domain.com.au/moving/one-womans-experience-of-downsizing-20111129-1o49b.html
Does it sound too good to be true? One really needs to read the fine print with big magnifying glass!
Some retirement villages do not allow the units to be sold in private market, that is, they must be sold back to the villages. The resale price is on a staggered rate, depending on the duration of occupation. One may not get back much if it is resold during first couple of years; but even after a decade or so, the resale price is still not 100% of the original price. Yes, you have read it correctly, the resale price is not indexed, and the price is based on percentage of the original price. In short, be prepared for big capital loss!
There is no free lunch too. Utility charges and maintenance fees are payable periodically. If one does not use the facilities in the village, one is throwing good money away for other people’s enjoyment.
There are other disadvantages, too. Most residents in retirement village are not young, and it is likely that within five years or so, more and more neighbours will drop off or move to nursing homes. One starts to wonder when their turn will come.
