Is a Downsizing Community worth the investment?

Ultimately, the answer to this question depends on what you’re looking for when you downsize!

If you’re looking to free up cash, live in a low-maintenance home, have 5-star amenities on your doorstep, have more time to jet off on holidays and live in a community of likeminded people, then you’ll likely agree that making the move to a Downsizing Community is entirely worth it!

To help you decide if it really is a worthy financial and lifestyle investment, we’ve outlined some important facts.

The financial pros:

• Free up equity
• Pay no stamp duty on your purchase
• Eligible homeowners can access Government Rent Assistance
• No more council rates
• Enjoy the opportunity to reduce your cost of living with many communities offering discounted electricity and insurance options

The lifestyle pros:

• Enjoy a range of lifestyle and wellness amenities on your doorstep
• Upscale your social life (if you choose to)
• Live in a secure environment with live-in managers and gated entries
• Spend your time how you really want (not fixing up the house and garden!)
• Luxuriate in the effortlessness of a low maintenance home

The cons:

• Many Downsizing Communities have restrictions on how long children can reside on the property.
• While most are, not all Downsizing Communities are pet-friendly.

In terms of the financial investment, Retirement Villages may have an exit fee (or may keep a percentage of any capital gains), thus reducing the amount you gain when you sell. It’s important to ask lots of questions and double check your contract to ensure you feel confident about the investment benefits.

When you exit a Land Lease Community, you keep the majority of capital gains from the sale of your home, with just a capped Deferred Management Fee to pay when you leave.

Plus, with many Downsizing Communities being located in growth corridors, properties can see impressive capital growth. For example, some of our members’ homes see an average capital growth of 10-12% per year!

We strongly believe that investing in a Downsizing Community isn’t just a good financial investment, but a good investment for your lifestyle.

Are you ready to discover freedom-full retirement? Explore our website for all the information you need about downsizing.

Photo by Precondo CA on Unsplash