When I won a large sum of money when playing the lottery a few years ago, I decided to invest some of it in real estate. My dad used to always tell me that bricks and mortar where a great way of protecting a large sum of money. Unfortunately, my father wasn't a real estate expert so his advice did not go beyond this very simple statement. I didn't know what to do for the best so I contacted a real estate agency. They were really great and they helped me to plan my property investments wisely. I started this blog so I could offer advice to others.
If you have parents who have retired from employment and live alone, then you should consider placing them in a retirement village. Such a village is a community of retired individuals residing in independent units which might share amenities and facilities. Most often, living in retirement villages will require you to commit a substantial amount of money. However, since you are taking care of your parents, you cannot put any cost on their well-being and comfort. Before you enter into a contract, have a real estate lawyer go through the fine print. Here are some useful tips for beginners to bear in mind before enrolling elderly parents into a retirement village.
Freehold Title -- There exist various forms of occupancy and ownership rights of retirement villages. Such modality of ownership or occupancy is based on the type of agreement between the village operator and the resident. Your parents can acquire a residence through a freehold title in the form of either a purple title or a strata title. The former refers to an arrangement where the seniors purchase ownership rights of a particular piece of land or building. The latter ownership denotes the acquisition of an undivided interest in the entire retirement village. The freehold title is an expensive endeavor that calls for a considerable investment in the property.
License/Lease -- The lease or license is a form of ownership/occupancy where a prospective resident enters into a contract with a retirement village operator, allowing the former to live in the premises for an extended duration. In some jurisdictions and territories in Australia, the license and lease must be registered on the freehold title of the property. In other places, such registration is optional. The lease/license arrangement is intended for residents with an average income or assets and who cannot afford the freehold title option.
Rental -- If the freehold title arrangement or the lease option is expensive for you and your parents, then you can consider going for the rental option. Senior residents can acquire suitable accommodations in a retirement village from a range of options including retirement villas, apartments, and townhouses. Your choice will depend on the available income or asset base. Some residents who meet known criteria are eligible for a Commonwealth Rent Assistance.
Partners -- Before your parents move into a retirement village, you must understand the rules governing partners. It is advisable for both parents to have their names in the contract document. The reason for the inclusion of both partners' names is that in the unfortunate event that one partner dies or relocates to an aged care facility, the other partner does not risk removal from the village.
Share25 October 2017
