Waipa is becoming one of New Zealand’s most attractive retirement destinations, with new retirement villages reflecting a growing community preparing for the next chapter of life.
For Steve, this became personal when his grandmother started talking about leaving the family home she had lived in for over 40 years. It wasn’t just a house to her — it was where she raised her children, hosted countless Sunday dinners, and built a lifetime of memories. The idea of moving brought both practical questions and a deep sense of emotion for the whole family.
Steve noticed that while his grandmother was ready for a simpler lifestyle, she was unsure about what came next — whether to downsize, consider a retirement village, and whether her legal affairs were still in order.
Together, they discovered her Will hadn’t been reviewed in many years and no longer reflected changes in her family or her current wishes. It was a gentle reminder of how easily these documents can become out of date over time. They also spoke about Enduring Powers of Attorney, ensuring the right people could step in if needed, and the importance of carefully understanding retirement village agreements before making any decisions.
Taking the time to get everything in order gave Steve’s grandmother real peace of mind. It also reassured Steve and the rest of the family that her wishes were clear and would be respected.
With the right planning and legal guidance from the team at Edmonds Judd, what initially felt overwhelming became a clear, supported transition — allowing Steve’s grandmother to focus on enjoying her next chapter with confidence, comfort, and security.
Rachael Beattie
A few years on from her decision to take out a reverse equity mortgage, and having enjoyed the benefits of releasing some of the capital tied up in her home, Karen is now feeling less confident about living on her own. Many of her old friends have moved away from her neighbourhood, and she is finding that she would like more support close at hand. She has decided to investigate moving into a retirement village.
This option offers several advantages. Karen would no longer need to worry about home maintenance, security, insurance, or rates. She would have ready access to assistance should she suffer a fall or other medical event. And if she feels like company, there would be plenty of like-minded people nearby.
However, Karen has been warned that there can be significant financial implications when selling a home and buying into a retirement village. To fully understand her position, she meets with her solicitor.
Her solicitor explains that most — though not all — retirement villages operate under Occupation Right Agreements (ORAs). Under an ORA, Karen would pay a capital sum in exchange for the right to live in her chosen unit. She would not own the land or building itself, and her right to occupy the unit would be subject to certain terms and conditions.
These conditions often include payment of a regular weekly fee for as long as the unit is occupied. There is also usually a deferred management fee (sometimes called an exit fee), which is deducted from the original capital sum when Karen leaves the village — whether that is because she chooses to move elsewhere or upon her death. In addition, there will be village rules governing what residents can and cannot do within their units and the wider village.
Karen’s solicitor takes the time to carefully explain the legal and financial implications, including how the move may affect the estate she intends to leave to her family. Once Karen fully understands her options, she is in a position to decide whether a move to a retirement village is the right step for her.
Mandy Rasmussen
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.
Georgia Willard
