Funding a Move to a Retirement Village or Aged Care Facility
Understanding Your Options
Moving from your family home can be a significant life transition. Whether you're planning an independent lifestyle in a retirement village or require more comprehensive care in an aged residential care facility, funding the move can sometimes be challenging, especially if your home has not yet been sold.
For some homeowners, accessing a portion of their home's value for village or aged care funding can provide flexibility during this transition and reduce the pressure of having to sell quickly.
Retirement Villages
Retirement villages are designed for older people who wish to maintain an independent lifestyle while enjoying the benefits of a supportive community.
Residents typically purchase an Occupation Right Agreement (ORA), which provides the right to live in a unit, townhouse, or apartment within the village.
Many people choose retirement village living because it offers:
A low-maintenance lifestyle
Social and recreational opportunities
Increased security
Access to support services if required in the future
The ability to remain independent while downsizing
One challenge can be the timing of the move. You may find an ideal retirement village but need access to funds before your current home has sold. In some circumstances, it may be possible to access equity from your existing property to help fund the transition.
Aged Residential Care Facilities
Aged residential care is different from retirement village living.
These facilities provide varying levels of care and support for individuals who can no longer live independently due to health, mobility, or care needs.
Care options may include:
Rest home care
Hospital-level care
Dementia care
Specialist care services
When a move into aged care becomes necessary, families are often faced with making important financial decisions within a relatively short timeframe.
In some cases, the family home has not yet been sold, but funds may be required to cover accommodation costs, care-related expenses, or other transition costs. Accessing equity from a property may provide additional flexibility while longer-term arrangements are finalised.
Using Home Equity During the Transition
For homeowners with sufficient equity, there may be options available for village or aged care funding to be released from the value of the home before it is sold.
Potential benefits may include:
Moving at a time that suits your needs rather than waiting for a property sale.
Avoiding pressure to accept a quick sale.
Providing additional time to organise finances and family arrangements.
Supporting retirement village entry costs or aged care-related expenses.
Maintaining greater flexibility during an important life transition.
As with any form of borrowing or equity release, it is important to carefully consider costs, interest charges, repayment requirements, and the impact on future estate planning.
Is This Option Right for You?
Every situation is different.
Factors such as:
Your age and health
Home ownership and available equity
Retirement village entry requirements
Residential care needs
Family circumstances
Estate planning objectives
should all be considered before making a decision.
Understanding all available options for village or aged care funding can help ensure you choose an approach that aligns with your personal circumstances and long-term goals.
Let's Explore Your Options
If you're considering a move to a retirement village or aged residential care facility and would like to understand how home equity could be used to support that transition, we're here to help.
Book an obligation-free discussion to explore your options and understand the potential benefits, risks, and alternatives available to you.
Your Financial Pathway Starts Here
Whether you're exploring your options, planning ahead, or helping a family member navigate important decisions, we're here to help with retirement funding education. Take the first step on your pathway to greater financial confidence and understanding.
Disclaimer
The information on this page is provided for educational purposes only and does not constitute personalised financial advice. Accessing equity from your home involves borrowing and may affect your future financial position and estate planning objectives. Lending criteria, fees, interest rates, terms and conditions vary between providers. Independent legal and financial advice should be obtained before making any borrowing or property-related decisions.
