What's the difference?
There are many differences between lifestyle communities and retirement villages, many of them to do with contract and fee structure. However, their individual appeal largely depends on your stage of life, and your needs and desires.
The contract
Edenlife – ONE standard contract for everyone.
Retirement village – varying and sometimes complex types can include lease for life, licence, purple title or restricted strata ownership.
Who owns what
Edenlife – you own your home and lease the land.
Retirement village – you don’t own your home or the land; only the right to live there.
Rent assistance
Edenlife – if you are a pensioner, you are more than likely eligible for Commonwealth rent assistance (subject to Centrelink eligibility criteria). Residents are responsible for making their own applications to Centrelink for rent assistance.
Retirement village – not eligible.
Willable Asset
Edenlife – the home can be sold with profits going to your estate or a beneficiary can move in if suitable.
Retirement village – cannot be bequeathed. An exit entitlement to the operator is calculated on the unused deposit.
Legislation
Edenlife – Residential Parks (Long-stay Tenants) Act 2006 and the Amendment Act 2020.
Retirement village – Retirement Villages Act 1992 and the Strata Titles Action 1985 (if applicable).
More information
Edenlife – Information booklet park living (publication from Department of Mines, Industry Regulation and Safety).
Retirement village – Retirement villages advice for seniors (Department of Mines, Industry Regulation and Safety website.
Ongoing costs
Edenlife – one simple weekly site fee covers everything, direct debited fortnightly.
Retirement village -Retirement village:
- Entry costs – one-off upfront payment that may or may not be refundable
- Ongoing costs – recurrent charges to cover operating costs of the village
- Levies – capital management or replacement known as a sinking or reserve fund
- Exit costs – could include payment of recurrent costs for a period after you terminate your contract, refurbishment costs, deferred management fees, reserve fund contributions and marketing costs for the sale of the property.
Capital gains
Edenlife – you keep ALL of the capital gain when you sell your home (minus a selling fee of 3%).
Retirement village – exit fees often include a significant fee for residing in the village (DMF) in the vicinity of 30-40% of the sale price along with refurbishment fees. While your entry payment is returned, it is minus all exit fees and may also include any increase / decrease in the upfront payment amount over residence.
Health & personal needs
Edenlife – as an independent living community, there is no onsite nursing, medical, assisted living or other aged care support services or facilities. It is your responsibility to organise these services as and when required.
Retirement village – often co-located with a nursing home and offer a range of aged care support services, assisted living and other relevant services and facilities.
Other Financial Responsibilities
Edenlife – none. Once you sell your home and another person signs their lease, your financial and contractual responsibility comes to an end.
Retirement village – depending on individual agreements, ongoing fees may still be payable after your exit and payment of your refund (entry fee less exit fees) may be contingent on your unit being sold or re-leased.