If this sounds like you, then you should read on.
It is a fact that New Zealand is facing a rapidly aging population. For example, last year the number of 75+ year olds in the country increased by 3.9% or in other words 11,620 people and the number is expected to keep growing year on year.
Retirement Villages as a result are becoming more and more popular and the preferred option for many seniors nearing retirement because they offer, inter alia, warmth and security.
There are approximately 30,000 retirement village units in New Zealand which includes 25,000 independent living units and 5,000 serviced apartments. A further 14,700 new units are planned for the next 10 years. This equates to approximately 1,900 each year.
What does this mean for you?
It means Retirement Villages are big business and you should tread carefully.
Instead of owning units outright, residents typically buy a “licence to occupy” with varying prices. In addition, a weekly fee is also charged to cover day to day running of the village again ranging in price depending on the facilities and services offered.
The Retirement Villages Act 2003 requires any prospective resident to take independent legal advice to ensure each understands the financial implications of the contracts they are asked to sign.
Farry and Co can help and assist you with such contracts.
If you require any advice or further information on the matters dealt with in this publication please contact the lawyer at Farry and Co. who normally advises you, or alternatively contact:
Maurice Turketo
mturketo@farry.co.nz
03 477 8870 or 09 379 0055
The information contained in this publication is intended as a guide only. It does not constitute legal advice and should not be relied upon as such. Professional advice should be sought before applying any of the information to particular circumstances. While every reasonable care has been taken in the preparation of this publication, Farry and Co. does not accept liability for any errors it may contain.