3 Things You Might Be Getting Wrong About Retirement Villages
Retirement villages are becoming a popular option for New Zealanders planning their retirement, but it is not the same as buying a house. Most villages provide an Occupation Right Agreement (ORA), which gives you the right to live there and use the facilities rather than legal ownership. Here are a few common misconceptions that can catch people out.
- “Weekly fees cover all my costs”
Weekly fees usually cover village services (gardening, security, communal facilities), but residents often still pay for utilities, care services, or extra support. - “All the money will go back to my family when I die”
Your entry payment will likely not be returned straight away when you leave or pass away. In reality, it depends on the terms of the ORA and can often require the unit to be re-licensed to a new resident. Most villages will also deduct what’s often called a deferred management fee which can be up to 20–30% of the original entry price - “All Contracts Are the Same”
Not all retirement villages play by the same rules. Fees, exit conditions, and benefits vary, and small differences can have a big impact.
Moving into a retirement village is a big decision, both legally and financially. If you are considering this step, it is important to seek advice from your lawyer, so you fully understand what it means for you and your family.
