This document discusses retirement housing options for elderly parents including having them remain in their existing home, building a granny flat, or moving them to a retirement village. It notes that retirement villages can offer social opportunities and on-site care but also have disadvantages like high ongoing fees, lack of variety, and feelings of abandonment from family. The document also outlines different ownership models for retirement villages including strata title, leasehold, license, and company title, advising readers to carefully review terms and beware of exit fees and sale restrictions.

1. GENC3003Personal Financial Planning Andrew Hingstonandrew.hingston@unsw.edu.au Unit 18: Retirement dwellings

2. 2 Discussion What are your parent’s expectations of you for caring for them when they are elderly? How do you think these expectations vary between different cultures?

3. 3 Caring for elderly parents Visit them regularly at their existing house Keep “independence” and living in their own house But what if frail or something happens? Buy a house with granny flat and look after them Close family relationships (esp grandchildren) But 20 year commitment too big for spouse if it is your parents? Retirement village Community of retirees living in self-contained flats Group accommodation also available for very frail But feel “discarded” by family?

4. 4 Retirement villagesAdvantages Some are more like retirement “resorts”. Great for sociable people. Lots of other people of the same age and with lots of time to do things. On-site care provided. Monitoring of people who are not well.

5. 5 Retirement villagesDisadvantages Usually a very bad investment! (destroys wealth) Annual fees can be high Very homogenous group of people – lack of variety! Spend all your time watching others get sick and die. Not good for unsociable people or mentally ill. Separation from family. Feeling “abandoned”.

6. 6 Retirement villagesTypes of titles Strata title (better) You can sell property to another retiree of your choice. May be restrictions and large deferred management fee. Leasehold Pay upfront fee to “lease” from the village developer (no own) Receive % of upfront fee and capital gain when leave.

7. 7 Licence Pay upfront fee and give village developer interest free loan Receive loan back less deffered management fee and no capital gains. Company title (bad) Buy shares in village that entitles you to live there. But, big problems with voting rights over complaints!

8. 8 Retirement villagesTips Consider non-retirement village alternatives carefully Read the terms very carefully Beware of large ongoing strata management, carer and other fees. Watch out for large “exit fees”. Watch out for restrictions on who you can sell to. Watch out for the village taking over the sale process – they may set a high price and you have to keep paying fees for 2 years while they find a buyer!