New research confirms retirement village affordability
Retirement villages are more affordable than general residential homes when the total living costs are considered, finds a new report from the University of Technology Sydney.
A comparison of retirement village living with general residential finds that, while the ownership costs of a house are lower, significant savings are realised through the lifestyle services included in retirement village living.
Report author Lois Towart, a researcher with UTS’ Built Environment Informatics & Innovation Research Centre, says her work compares nine retirement villages across Australia with general residential properties of a similar age, style and level of accommodation in each locality.
“This comparison was based on the financial and lifestyle components of retirement village living including entry price, ongoing costs, facilities and services, exit price and intangible factors.”
Towart analysed the costs of accessing a range of services – from bowling greens and gymnasiums to libraries and men’s sheds – by both private car and public transport.
For example, the monthly costs for seniors to access the facilities in a retirement village, if they live in general residential in the locality and travelled to the facilities by private car, was $446.90 for one village in Queensland, $532.39 in NSW, and as much as $565.17 in Victoria.
Ben Myers, the Property Council’s executive director for retirement living, says the report highlights the financial benefits of being in a community with health and lifestyle services at a resident’s door.
“If you live outside a retirement village and you access facilities and services like swimming pools, gymnasiums, libraries, GP clinics and social activities, this report shows you’re going to probably end up paying more than it costs to live in a retirement village,” Myers says.
“Critics of retirement villages are quick to point out the cost of leaving a village, but this research shows the cost of living should be measured much more broadly than by just looking at exit costs.
“Retirement villages offer access to facilities and services that lead to improved health outcomes and greater social interaction than would be possible in a general residential setting.”
The report also highlights that retirement villages and seniors living communities provide other intangible benefits, including an increased feeling of security. This is an “invaluable benefit”, Myers says, “that is impossible to put a price tag on”.
Download A comparison of retirement village living with general residential.