That distinction has significant financial consequences.<\/p>\n
Residents generally pay a weekly or monthly fee towards rates, insurance, maintenance, staffing and village facilities. Those fees may be fixed, or they will rise in line with inflation, New Zealand Superannuation or the village\u2019s actual costs.<\/p>\n
When residents leave, they will usually receive the amount they originally paid, minus a deferred management fee \u2013 commonly around 30%.<\/p>\n
In addition, for the majority of retirement villages, \u201cthe operator keeps any capital gain\u201d, Baldwin says.<\/p>\n
There are exceptions, with some villages now offering residents a share of any gain. However, Baldwin says the flipside of the more common model is that residents are not generally exposed to losses if the unit falls in value. <\/p>\n
Because the model differs so much from home ownership, it needs to be assessed carefully. It may preserve less wealth for a resident\u2019s estate or future care, but it buys facilities, company, security and freedom from maintaining a large property. <\/p>\n
Baldwin encourages prospective residents to discuss the move with their family members, as well as obtaining the independent legal advice that\u2019s required before signing an occupation right agreement. <\/p>\n
That means everyone understands the arrangement and why it appeals \u2013 because it\u2019s not solely a financial decision. <\/p>\n
\u201cFor a lot of people who are moving in, it\u2019s about having the facilities that they want, having all of the recreational services, things to do, clubs to join, having people around,\u201d Baldwin says.<\/p>\n
Watch or listen to the full episode of The Prosperity Project<\/a> for more.<\/p>\n The Prosperity Project is hosted by Nadine Higgins, an experienced broadcaster and financial adviser.<\/p>\n Follow the show at iHeartRadio<\/a>, Apple Podcasts<\/a>, Spotify<\/a> or wherever you get your podcasts. New episodes are released every Monday.<\/p>\n","protected":false},"excerpt":{"rendered":"That distinction has significant financial consequences. Residents generally pay a weekly or monthly fee towards rates, insurance, maintenance,…\n","protected":false},"author":2,"featured_media":557084,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[95,1863,138,3167,802,6435,12474,2550,1333,83800,10053,24176,296,4528,4380,2686,111,139,69,1523,3263,20586,294,223,2742,23534,6923,197],"class_list":["post-557083","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-and","tag-back","tag-business","tag-buy","tag-costs","tag-does","tag-dollars","tag-even","tag-get","tag-handing","tag-house","tag-hundreds","tag-into","tag-involve","tag-millions","tag-moving","tag-new-zealand","tag-newzealand","tag-nz","tag-over","tag-project","tag-prosperity","tag-retirement","tag-the","tag-thousands","tag-village","tag-what","tag-you"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/557083","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=557083"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/557083\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/557084"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=557083"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=557083"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=557083"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}