Retirement Village Occupation Rights: What You're Actually Buying

When considering moving into a retirement village in New Zealand, it's essential to understand what you're buying. According to Jenny Baldwin, a sector expert and partner at Anthony Harper, most people are purchasing an occupation right agreement.

This type of agreement grants the occupant the right to live in the village for a specified period but does not give them ownership of the property. The cost of this agreement can range from hundreds of thousands to millions of dollars.

Baldwin also explains that there are ongoing fees associated with living in a retirement village, including capital gains and deferred management fees. These fees can add up quickly and may impact an occupant's finances upon moving into aged care.