If you’re approaching retirement, how you fund your lifestyle into the future is likely a hot topic in your household.
If you’re thinking about selling up and downsizing to something smaller, lower maintenance and less expensive to keep, you’re in good company.
For many retirees, the ‘asset rich’ approach to retirement may not be sustainable or provide a financially viable income stream. In these instances, freeing up equity by downsizing can make a lot of sense.
While the lifestyle benefits of downsizing to a lifestyle community are well documented, the financial benefits are also well worth taking into consideration. In this article we look at the top 4 reasons you should consider a land-lease community as an option in retirement.
1.The Purchase Of Your New Home Is Simpler And Less Costly
One of the biggest benefits to choosing a lifestyle or land-lease community is that the purchase of your home is far simpler. The amount you pay upfront is simply the cost of the home, plus the cost of leasing the land the home sits on.
Because you’re not buying land, there are no dreaded stamp duty fees to pay. Avoiding Stamp Duty will save you thousands in purchase costs, leaving more money in your pocket to put towards funding your lifestyle in retirement.
Some villages also offer residents a shared equity option when buying their home. This allows buyers to share a percentage of the ownership of their home with the village. By opting for shared equity you can free up more of your capital to fund retirement so that you don’t have to compromise your lifestyle.
2. You May Be Eligible For Rental Assistance
It is also worthwhile noting that, if you’re currently in receipt of an eligible welfare payment from Centrelink, like the Age Pension, you can also receive fortnightly Rent Assistance payments from the government. Because you’re effectively renting your land within the community, the rental subsidy can be used to offset your weekly fee.
3. Enjoy Lower Maintenance Costs
Living in a bigger house often means bigger bills for rates, insurance, utility and home maintenance. If you’re an empty nester, it makes no financial sense to be spending more money on these things than you need to be! When you move into a lifestyle village you don’t have to worry about finding the money for ongoing and expensive council rates and charges.
4. Retain Capital Gains And Save On Exit Fees
If and when the time comes to move or sell your home, again like the purchase, the transaction is far simpler. Unlike a retirement village, many of our lifestyle villages don’t charge expensive exit or deferred management fees. As you own the physical home, any capital gains that you make are yours to keep.
If you could manage to pay cash for your new home, close off any outstanding debts, supplement your retirement income, boost your super, or more excitingly, make your dream holiday a reality – why wouldn’t you? Downsizing to one of our lifestyle villages has allowed many Hampshire Village residences the financial freedom to fund their retirement on their terms.
Thinking about downsizing? Learn more about the Hampshire Village difference.
Browse our range of homes for sale or get in touch today and speak with our friendly team about how we can help you make the most of your retirement. Opportunity awaits!
Telephone: 1300 730 869