Who can buy a retirement property in Australia?

Group of retirees smiling and drinking

If you’re edging closer to your golden years you may be considering enjoying the best of your post-work life in a purpose-built community. Many retirement villages are designed with a fantastic range of onsite amenities, where days can be spent enjoying a life where every last detail has been considered.

Perhaps you’re planning the trip of a lifetime and searching for a lock-and-leave lifestyle, or you’re ready to create meaningful social connections and be immersed in a vibrant community. Whatever lifestyle you may be chasing, we’re divulging who retirement villages are for and who can purchase a retirement property in Western Australia.

But first, what exactly is a retirement village?

Retirement living communities are meticulously planned to provide retirees with a warm and welcoming place to call home. Many offer their residents an array of fantastic amenities from aquatic centres and clubhouses to hair salons and bowling greens. Offering prospective residents the opportunity to trade household maintenance for a lifestyle they love, with many chores taken care of by on-site staff.

St Ives provides a range of services to residents including garden maintenance, with select villages and exterior home repairs.

Different retirement villages offer different amenities, so it’s important to evaluate the lifestyle you’re searching for and consider which is best suited to you.

Who are retirement villages for?

Retirement villages across Australia are typically designed for over 60s, who in search of the ultimate lifestyle to enjoy their golden years.

Often confused with aged care facilities, many retirement villages do not provide in-home care or assisted living facilities. As a safety measure, all homes and common areas in St Ives Villages are fitted with a 24-hour emergency call system, connecting residents to emergency services.

‘Do I have to be retired to buy property in a Retirement community?’

Despite the name, you dont have to be retired to live in a retirement village. You are usually only required to be above a certain age, with your current work life not affecting your application.

‘Can I buy a retirement property if I’m under 60?’

The flexibility of a policy is dependent on the retirement village. It’s important to have a conversation with your desired community to understand your eligibility. There is a common exemption from the age exemption for couples who are of different ages. Providing one member of a couple is over 55, it is highly unlikely your application would not be successful.

‘Can I buy a retirement property as an investment’

Properties in a retirement village are often snapped up fast so it’s understandable to want to secure your future in your chosen village ahead of time, renting it out until you are ready to move in.

Alternatively, you may be considering purchasing a retirement property in Australia due to the high demand and earning potential. Again, this policy is specific to each retirement village and should be discussed with their sales team.

‘How do I buy a retirement property in Australia?’

Purchasing a retirement property is a little different to purchasing a residential unit. Residents are required to pay an upfront sum valued at the price of a property. This is the same process as if you were to buy a residential dwelling that’s not in a retirement village.

It is dependent on a retirement village if you own the strata title or if your upfront contribution is agreed on a ‘lease for life’ basis. You can find the details of this in your contract, but if you are unsure make sure to reach out to a sales consultant!

A change in the process arises when retirees are moving out of the residential village. Many retirement villages in Australia operate on a DMF scheme (Deferred Management Fee) in which residents are required to pay an exit fee based on their length of stay and associated costs. The Deferred payment model can often act as a barrier to individuals wanting to purchase the property as an investment, however, that’s not to say it’s not an option across all retirement communities.

Learn more about the DMF model and the associated cost of retirement.

‘What are the requirements to purchase property at a St Ives retirement village?’

To enjoy your dream retirement at a St Ives village you must meet the following requirements:

  • Be aged over 60
  • Able to live independently, without the need for full-time care.

If you meet this criterion, and think life in a St Ives could be for you, order an information pack to find out more!

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