It pays, literally, to know your stuff!

First published on stuff.co.nz

Before moving into a retirement village, it's important to understand the costs and fees involved.

If you’re thinking about moving into a retirement village, you’re probably already considering your finances. With any major financial decision, knowledge is power: the more research you do, the more confident you’ll be.

Security and peace of mind, reduced home maintenance responsibilities, an enhanced social life, access to recreational activities and facilities, and the ability to lock up and leave, are all well promoted benefits of moving into a retirement village.

But there may also be further benefits for your wallet, as there is often room for discussion about fees and incentives. Long settlement dates, cashback offers, village fee holidays, and assistance with moving costs are just a few of the incentives that may be offered to you as a potential new resident.

If you’ve decided retirement village life could be right for you, there are many options to choose from in our well-established but still growing New Zealand market. So make sure you shop around to see what each village has to offer, as they are all very different.

When you engage with a prospective village the manner of the salesperson speaks volumes. Are they welcoming, upfront and open? Do they listen intently to you, and provide helpful answers to all of your questions? It’s crucial you understand the costs and fees involved, which differ from purchasing a regular house on the real estate market.

Metlifecare always ensures its customers get their own independent advice before proceeding with any transaction. They’re also transparent and encourage customers to have a thorough understanding of what’s involved. Their free Money Matters Guide is a resource packed with essential financial information to help customers make informed choices.

The Guide covers the two main costs: the capital sum and village fees. It also explains the Occupation Right Agreement (ORA); a contract that grants you the right to live in the village in the apartment or villa you choose and access its facilities. The independent legal advice you’re required to get will also help you to understand all of this.

It’s helpful to compare what household costs you are currently paying living outside of the village, with what you would pay as a village resident. At Metlifecare, the weekly village fee takes care of things like rates, outdoor maintenance, gardening, and property insurance. Residents themselves take care of utility costs and personal contents insurance.

For most people, moving into a retirement village means selling an existing property. It goes without saying that you’ll want the best financial result possible. Getting your home ready for market is about providing what buyers want, without compromising your equity.

Often a successful sale is about presentation rather than renovation. Talk to experienced real estate agents working successfully in your area to determine if a new kitchen or bathroom will add significant value to your home, or whether a declutter and lick of paint will be enough to secure a fair price.

Download the Money Matters Guide at www.metlifecare.co.nz/guides/money-matters or make an appointment to chat with a Metlifecare Sales Executive at 0800 909 303.