Retirement villages in Adelaide, Australia have become very popular these days, with many retirees choosing to rent retirement units instead of buying their retirement homes. However, before you opt to rent a retirement house, you’ll need to wrap your head around all the financial implications of retirement houses for rent in Adelaide.
This is a genuine concern because you need to know how much it will cost you to rent a retirement house to determine if it’s better than buying a retirement house altogether. In this article, we’ll explore the cost implications of renting a retirement unit in Adelaide.
Benefits of Renting a Retirement House in Adelaide
Compared to other rental homes, retirement units are smaller and more affordable. In Adelaide, many property developers are building retirement villages with shared basic amenities like shopping malls, medical centres, and recreational facilities. Furthermore, living in a retirement village means that you no longer have to worry about the costly maintenance of a large house and your garden because it’s handled by the landlord.
Renting a retirement unit in Adelaide also means that you don’t have to worry about paying council rates, water bills, and building insurance. It also gives you a better sense of security because you’ll be living amongst other retirees. Therefore, you’ll have an opportunity to make new friends and have peace of mind knowing that support is just around the corner.
Justifiably, there’s a cost to these benefits, which is why you need to do your calculations before you rent a retirement house. Fortunately, you can use an online Adelaide rent calculator to determine how much your retirement home will cost.
What Are the Costs of Retirement Houses?
If you’ve just retired from your job and the current home you’re renting in Adelaide is too expensive, you should consider downsizing to a smaller retirement unit. Although the fees charged when renting a retirement unit inside a retirement village are quite complex and different from those you have as a homeowner in a residential community, the overall cost of living in a retirement unit is more affordable.
Also, different retirement villages in Australia have varied rules and regulations. Therefore, you have to familiarise yourself with the cost implications involved in renting a retirement unit before you rent one–here are some of the charges you are likely to get when renting a retirement unit in Adelaide:
Also referred to as entry payment, purchase price, lease premium, or ongoing contribution, the entry fee is the amount of money you’re charged when you rent a retirement unit inside a retirement village. However, it’s important to note that not every retirement village in Adelaide charges this fee. The fee usually ranges from $100,000 to $2 million, depending on the location of the unit, its age, and the basic amenities offered in the village. The Property Council’s 2020 Retirement Census put the entry fee for a two-bedroom retirement unit at $463,000.
As you rent a retirement unit in Adelaide, you need to be wary of the stamp duty. This charge is mandatory if the unit you want to rent is under strata, community, or freehold title. However, if the unit is under a leasehold or licence title agreement, you won’t be required to pay stamp duty–this fee is usually separate from the agreed price.
Ongoing Service Charge
Also referred to as a service fee, the ongoing service charge is the amount of money you pay either weekly or monthly for shared facilities and services like house maintenance, gardening, landscaping, village staff salaries, and communal area insurance. The 2020 retirement census by the Property Council put this fee at $518 for a two-bedroom unit.
Personal Living Costs
You have to factor in your daily expenses such as food, telephone charges, household items, entertainment, transport, medical care, holidays, and contents insurance. These costs are on top of your ongoing service charges; your personal living cost depends on your retirement lifestyle.
Of course, Soho has you covered when it comes to finding the perfect retirement house to fit your needs, lifestyle, and budget. Take a browse through our available property listings today!