Top ten mistakes people make when shifting to community living

Planning to rightsize requires careful thought. If you know anyone who is considering moving into an over-50s lifestyle resort, make sure they read this handy list of the top ten typical mistakes people make.

1. Making a hasty decision
When deciding what to do about the family home, you might find yourself hemmed in on all sides by well-meaning advice from family and friends.

It’s a significant step and if you’ve lived in your home for a long time, there are many precious memories there too – along with everything that’s familiar, such as the neighbours and the neighbourhood.

You might feel under pressure from your family to sell the home or be urged by a spouse to downsize. As a result, you could feel obliged to make a quick decision to make everyone happy.

This is a mistake that could be financially costly as well as negatively impact on your future wellbeing and peace of mind.

Once you have decided that downsizing is the right decision for you, take your time to look around. Not all options are created equal. Understand all the choices available and don’t feel under pressure from salespeople, especially if you’re not ready to move.

2. Assuming you know the differences between land lease communities, retirement villages and strata living

When looking around at downsizing options, many people think their only choices are a retirement village or an apartment.

But there is another option, one designed for over-50s who are still leading active lives and want to maximise social and financial opportunities.

A land lease community is a new style of development in which you own your home, but lease the land it sits on. The advantage is owning a new, luxury home at an affordable price – often with reduced running costs and access to quality resort facilities.

Over-50s lifestyle resorts are designed for fully independent living. Residents also get a say in how the community is run through a Home Owners Committee.

Retirement villages are owned by companies or charities. They are frequently the first step to assisted living and nursing home arrangements, and may not be the right choice for active, independent individuals.

Swapping a house for a townhouse or apartment is another option that many people consider. Strata living often means you are sharing walls with neighbours who may not have the same values (or taste in music) as you do.

Understanding the difference between these options means you can make an informed choice.

3. Getting caught by inexperienced developers

There’s more to building a vibrant over-50s lifestyle resort than just throwing up a few new houses, a swimming pool and a tennis court, then calling it a day. Quality land lease developers know that the relationship with homeowners is for the long-haul.

Because the developer continues to manage the resort after it’s fully settled, an experienced developer builds with the long-term in mind.

Experience counts, so look for a developer with a proven track record of creating successful active over-50s lifestyle resorts across Australia, and who understands you and the lifestyle you want to live.

Don’t risk your financial future with inexperienced land lease developers. Make sure you ask questions and ask to see completed projects so you can assess the build quality of the homes and the standard of facilities before you commit.

4. Being sold extras in your home that should be standard

Make sure you’re getting true value for money.

Living Gems homes are architect-designed, 6-star energy rated homes with multiple facade and colour-scheme options. All homes are built with high-end, low maintenance living in mind and come with extensive inclusions such as high ceilings, air conditioning, solar panels, quality kitchen appliances, walk-in pantries and robes, double vanity ensuites and separate laundries, as well as thoughtfully designed storage and alfresco areas.

It is important to do your research before you sign a contract so you don’t get caught paying more than you should for ‘extras’ that ought to be standard.

5. Being short-changed on resort facilities

Not all lifestyle resorts are created equal.

Resort facilities should be of a quality you’d expect to see at a holiday resort – thoughtfully designed with quality furniture and equipment to match.

Start by deciding what is important to you – a fully equipped gym, perhaps? A games room with billiards, a golf simulator, ten-pin bowling, or a tennis court? Perhaps you’d prefer drinks from the bar or enjoy the resort pool?

A grand ballroom is a must, along with a private cinema, cafe, crafts room, library, beauty salon and private meeting rooms.

The landscaping should be beautiful with plenty of paths and walking trails.

But in the end, the choice is personal. If you can see yourself living there, then it’s worth another look and some serious consideration.

6. Being slugged by exit fees or deferred management fees

Did you know all retirement villages have exit fees when you decide to sell? These are also known as deferred management fees.

They can eat up a great deal of the capital gains your home has earned. Some people have lost tens of thousands of dollars that should have been theirs by right.

It shouldn’t be this way.

Choose an active over-50s lifestyle resort that charges no exit fees and, just as importantly, offers financial transparency. At Living Gems there are no additional costs for moving in or out. Our owners are not charged stamp duty and any capital gains made are yours to keep.

The only on-going charge is a modest weekly site fee which covers the cost of on-site management as well as running and maintaining the resort to the highest standard.

7. Ignoring options for your financial future

You’ve worked hard for what you’ve earned and a big part of that is your family home. Looking at ways to maximise your investment is a smart thing to do.

For many people it is worth unlocking the equity in a family-sized home and investing in a rightsized new home that frees capital to help you live the lifestyle you deserve in a home where the capital gains are 100 percent yours.

8. Not putting yourself first

After spending your working life looking after other people, isn’t it time to do something for you?

Does a lifestyle in which you own a home in a secure gated community with on-site management where you can simply lock up and leave to travel appeal? Or feeling that you’re on holiday all day every day in a five-star resort community with plenty of like-minded people as neighbours?

If this is something that you’re actively considering, we encourage you to go back to the top of the list and read it through again.

Retire from work, don’t retire from life! Downsizing doesn’t mean taking a step backward. Use it as an opportunity for a simply lifechanging move.

9. Putting off the decision

People tell us the same thing over and over again – they wish they’d moved into an active over-50s lifestyle resort like Living Gems a whole lot sooner.

But when is the right time? That’s up to you:

• Perhaps when you’ve completed your financial commitments to dependent children.
• When you still want more out of life.
• You’ve got the time and the means to travel.
• When you want to rightsize your home and upgrade your lifestyle.

10. Not making the most of your new lifestyle

Participate in your new community at a pace that suits you. Living in an active over-50s lifestyle community with so many like-minded people nearby makes it easy to develop friendships and try new things. It’s time to dive in!