Common questions, clear answers

We’ve collected the most frequently asked questions about retirement villages, from how the model works to what residents can expect day-to-day.

  • Prices vary from village to village but generally they are aligned with the median price of property in that location. Retirement village living provides a no-hassle lifestyle with no need to maintain and upkeep homes.

    Residents pay weekly fees, which cover rates, house insurance and water levies, and in many cases this is fixed for life. A resident will also pay something additional by way of a deferred management fee, when vacating a unit. This fee, which covers the refurbishment and management of the retirement village, is deducted when your capital sum is repaid to you or your estate. This provides certainty to residents while they are living at the village.

  • There are many types of villages and the accommodation options, services and facilities offered vary from village to village.

    Unit, villa or apartment: this can be a one, two, three or even a four bedroom dwelling that may form part of a complex, be semi-detached or completely stand-alone. Units, villas, or apartments are designed for people who choose to live independently within the village.

    Serviced apartments: a serviced apartment provides accommodation for residents who require some assistance with daily living. They are generally one or two bedrooms, where services such as cleaning and laundry assistance are offered. Meals may be provided in a communal dining room, or in some cases delivered, although a kitchenette is usually included in the apartment.

  • Every registered retirement village uses an Occupation Right Agreement (ORA). This is the contract between you and the village that gives you the right to live there and sets out how everything works.

    Within that agreement, there are a few different ways your right to occupy your home can be structured.

    Licence to Occupy (LTO)

    This is the option most people use. A licence to occupy gives you the right to live in your unit and enjoy the village facilities, just as set out in your ORA. You don’t own the land or buildings — those stay with the village operator — but you do have the security of long-term occupation.

    Unit Title

    Some villages offer unit titles. In this case, you actually own your unit and become part of the body corporate. The body corporate looks after shared spaces and usually contracts a village manager to keep day-to-day life running smoothly.

    Lease

    A smaller number of villages offer a lease arrangement, such as a life lease, life interest or cross lease. Your ORA will outline the exact terms of the lease and your right to live in the unit for the period agreed.

  • No. More than 53,000 New Zealanders choose to live in retirement villages and this number is rapidly growing. While some residents appreciate the ready access to care, many people move to a village for the security, companionship, sense of community and high level of facilities.

  • Village residents come from all walks of life and the variety of village offerings almost certainly means there’s a unit or apartment for everyone. It’s worth noting that many residents only have their National Superannuation to live on, and benefits such as the rates rebate are available to them.

    Operators work hard to make villages affordable for the everyday New Zealander. The sector continues to evolve, particularly with the increasing focus on care, and there is more competition between operators and therefore more choice for New Zealanders than ever before.

  • A disclosure statement

    A disclosure statement relates to the ownership, management and supervision of the village. It includes information about the occupancy tenure, the state of the village, the services and facilities offered and the arrangements for maintenance and refurbishment. It outlines the costs of entering, living in, and what you can expect to get back after you leave.

    Occupation Right Agreement (ORA)

    The ORA is the legally binding agreement between the resident and the village operator and sets out the terms and conditions of your right to live in the village. It will vary from village to village so it’s important that you understand the differences.

  • No. Villages are long-term, capital-intensive projects. A recent independent analysis by accounting and professional services company Grant Thornton found it can often take 20+ years for a retirement village to break even.

    Village operators must achieve a sustainable return to fund new villages, upgrade facilities and provide care services. Without financial sustainability, choice and access for older New Zealanders would decline.

Financial & Operational Facts

  • No. Funds are committed to infrastructure, debt repayment, and services, not sitting idle. There is no pile of cash sitting with an operator. Operators only receive the Deferred Management Fee when a new resident enters, at which point outgoing residents or estates are repaid.

  • 75 per cent of villages provide on-site aged care.

    87 per cent of residents who require care transition within the same village.

    For others, the transition follows the same process as standard residential care, with hardship provisions available in limited cases.

  • No. Residents have a licence to occupy, not a tenancy. This model keeps entry costs lower, provides certainty of services, and enables access to purpose-built housing and community facilities.

  • No, a Ponzi scheme is a fraud that collapses when no new money comes in. Retirement villages are the opposite. They are heavily regulated, legally transparent, and backed by bricks, mortar, and decades of investment.

  • The financial outlay for retirement village living is not for everyone.

    Those who choose to live in a retirement village are making an investment in their quality of life.

    Generally, a resident pays less than the average price of a freehold home in that neighbourhood when they move to a village, and a deduction from their original entry payment is made when they leave the village. This frees up equity in their home and provides certainty to residents while they are living at the village.

    Residents purchase the right to live in a purpose-built warm, comfortable, and secure private home.

    They also enjoy onsite amenities like bowling greens, swimming pools, croquet courts, billiard rooms, lounges, cafes and gyms. The deduction helps cover the cost of providing these amenities. In other words, they ‘enjoy now, pay later’.

    There is a variety of factors why people move to retirement villages. These include companionship, security, and peace of mind. In addition, all building maintenance and future refurbishment is taken care of and there are care options if required.

Consumer Protection

  • Yes. The Retirement Villages Act requires all retirement villages to be registered with the Registrar of Retirement Villages, part of the Ministry of Business, Innovation and Employment.

    Residents are not protected by the Retirement Villages Act if they are living in an unregistered village. Your first step should be to ask whether the village is registered. If it is registered, there will be a wealth of information available which can help you make a decision about the best retirement village for you.

    A registered retirement village protects its residents from mortgagee sale, liquidation or receivership by placing a memorial on the title of the land on which the village is based.

    The Registrar-General of Lands records the memorial which notifies interested parties that the residents’ rights have priority over other parties; this ensures that consideration is given to the rights of residents before a secured party takes action. This stops a creditor or operator selling the village other than as a going concern, and also stops residents from being excluded from using the village facilities they are entitled to use.

  • The statutory supervisor is independent from the village manager and monitors the financial position of the village, ensuring the security interests of the residents are protected and that the retirement village is adequately managed. The statutory supervisor must also report annually to the residents via the Village Annual General Meeting to which all residents are invited to attend. The statutory supervisor is regulated by the Financial Markets Authority.

    While it is possible that villages may have an exemption, registered villages are required to have a statutory supervisor.

  • Take your time thinking about all the options before deciding on the village that most appeals to you and suits your needs, and then visit it several times before making a commitment.

    It’s a good idea to take a friend or relative with you. You can meet residents at some of their recreational and social activities. They’ve all been through this process of decision-making and selection, and you will find many who will be happy to share their experiences with you and talk openly and honestly about the village. If you don’t have your own car, many villages have a bus dedicated to taking residents to and from shops and other outings. Check whether the nearest shopping centre is within easy walking distance or is on a public transport route. You should also consider how many facilities and services you can use within the village.

  • Most villages require a deposit to reserve a unit and their policy specifies how long the unit can be held. If you change your mind within their specified time your deposit will usually be refunded. You should enquire about this and also be aware that some villages may require an administration fee. If later you enter into an agreement, the deposit will form part of the price payable for your unit.

  • Under the Retirement Villages Act any intending resident must receive independent legal advice before signing the ORA. The same lawyer who witnesses your signature on the ORA must also certify that they have explained to you the general effect of the ORA and its implications. It is always useful to discuss your options and decision with your immediate family, other relatives and friends.

  • Yes, there is. Should circumstances change or you decide the village is not for you, the Retirement Villages Act gives you the right to a refund if you cancel during a 15 working day ‘cooling-off’ period. The cooling-off period starts from the date you sign your ORA. Any money you have paid is held by the statutory supervisor (where there is one) until the cooling-off period expires.

Living in a Retirement Village

  • You’re welcome to make your unit feel like home, but what you can change - and what needs approval - depends on the type of unit and the scale of the changes.

    New units

    If you’re buying “off the plan” or moving into a brand-new unit, you may be able to choose from a selection of colour schemes, fittings and finishes before construction is completed. Some villages also allow limited customisation.

    Refurbished or existing units

    For units that have already been lived in, décor such as carpet, paint colours and curtains is usually refreshed by the village as part of the refurbishment. If you would prefer alternative colours or finishes, this is often possible but may need to be discussed with the operator before you move in. 

    Changes after you’ve lived there for a while

    You can personalise your home with your own furniture, artwork and soft furnishings.

    If you want to make bigger changes, for example repainting walls, replacing carpet, or installing a new kitchen or bathroom, these generally require approval from the village operator. This is to make sure changes meet safety requirements, future maintenance needs, and any reinstatement obligations when you leave the village. 

    Many operators are happy to work with residents on improvements, as long as they’re planned together and completed to an agreed standard.

  • You can continue to go to work while living in a retirement village. If, however, you intend to work from home you should make sure the village rules allow this and ask the manager what the village policy is. One reason for this is possible council restrictions on residential dwellings used for places of business. Increased visitor traffic may also inconvenience other residents, as will any noise associated with a trade. Many residents will be spending much of their day at the village, and will want to protect its peaceful environment.

  • When you choose to live in a village, you will be asked to enter into an ORA that sets out your rights and obligations and those of the operators and managers of the village. If another organisation buys the village, they are obliged to honour these arrangements.

  • Most villages do not allow sub-letting or rental of a unit as it is contrary to the philosophy of village living, which promotes a constant and secure environment. It is comforting to know that all residents are permanent occupants of their units.

  • Residents may enjoy the convenience of a variety of facilities. These vary from village to village but can include a library, dining room, swimming pool, club house or leisure area including billiard and card rooms, a café and more.

    Some villages have bowling greens, workshop areas, vegetable gardens, craft-rooms, gyms, caravan parking and other features. Many villages also offer services such as doctors, physiotherapists, hairdressers and banking. Before committing to a village you should carefully check what facilities are available and are promised.

  • You should ask the village about storage if this is important to you. Many villas come with their own private storage areas, but this depends on the location, size and age of the village. Some villages offer communal storage facilities.

  • Friends and family may be welcome to stay with you in your unit for a time and to use the communal facilities while in your company. This depends on the terms of your ORA.

  • Most villages offer a choice ranging from common car park areas to private carports or individual, lockable garages. There may be an additional charge for these. Villages usually provide some visitor parking.

    A number of villages have boat and caravan secure parking areas, often at no charge. As space may be limited, always ask about availability.

  • Most village residential units have gardens immediately around them and, in most cases, you will be able to maintain the garden yourself. However, you should check with the village manager about whose responsibility it is for the maintenance of the garden or any ongoing concerns. Many villages have a residents’ workshop where people share their tools and skills.

  • Many villages do allow residents to bring their pets, but there are usually some conditions to make sure pets fit well within the village community. 

    Your pet will normally need to be approved by the village operator and listed in your Occupation Right Agreement (ORA). Villages often have guidelines about things like pet size, behaviour, registration and how pets are managed in shared areas. 

    If you’re thinking about bringing a pet, or adopting one later, it’s important to talk with the village early so you know what’s allowed and what the process is. 

    Many residents find their pets bring companionship and most villages will try to accommodate that wherever they can. 

  • Yes. Village life brings security and freedom to travel. You can go on holiday knowing that your home and garden will be cared for while you are away. Most villages recommend that you notify the manager of a planned absence.

  • Many villages will have consulting rooms to allow a local doctor to see residents at the village. However, the choice of a medical practitioner remains yours, and you are not pressured to transfer to any village doctor.

    For medical emergencies, many villages offer call systems in their units, and larger villages may offer 24-hour monitoring services where any emergency call is attended by a person whose experience may range from first-aid certification to full nursing experience.

  • All villages have rules about using the common facilities and maintaining a positive environment for everyone’s benefit. Ask for a copy of the rules before you make a decision.

  • Many villages have a residents’ committee that works with management to maintain or enhance the quality of village life. To participate or not is a matter of personal choice, but residents may enjoy making significant contributions to whatever facets of village life most interest them.

    If a dispute arises, management works with the resident to try to resolve the issue. The Retirement Villages Association has a disputes resolution process and a more formal system is set out in the Retirement Villages Act.

  • The regular ‘outgoings’ or weekly fee contributes to some running costs of the village. These costs may include the upkeep of the village facilities, maintenance of the village grounds and gardens, staff wages and salaries, statutory charges such as council and water rates, security costs, ACC and public liability insurance, and common area insurance for the entire village.

  • The basis of calculating the ‘outgoings’ or weekly fee varies from village to village and is fully explained in your ORA. The fee is generally reviewed annually as the village operator plans the budget for the year ahead. Some villages offer a weekly fee fixed for life.

  • The Retirement Villages Act requires operators to provide residents with annual financial statements and budgets. These are usually presented and discussed at the village’s Annual General Meeting.

Leaving a Retirement Village

  • As with all residential property, unit prices are determined by the market. However, in a village there are additional factors that may add value to the resale potential of your unit, including attractive and relevant services and amenities.

    The village manager may either take responsibility for or will assist you or your estate agent in the resale process. The terms of any repayment due to you or your estate will vary from village to village and will be set out in the ORA. Make sure you and your family understand this before committing to living in a village.

    A deferred management fee is deducted by the village when your unit is sold. The amount of the fee varies. The sales person will provide you with an explanation of their terms, including examples.

A lot gets said.
Here’s what Rosemary and Earle experienced.

Rosemary and Earle describe a village where the manager’s door is open, there is always someone to talk to and concerns can be worked through. It is one perspective in a wider conversation - and one they believe is worth hearing.

Video courtesy of Metlifecare​
Hear their experience.