There are a number of different Retirement Living Options, and one that is increasingly common is the Over 50s Resort Style of living.
These sorts of arrangements come under the Manufactured Homes Act, and deal with ownership of (theoretically) relocatable homes within a Manufactured Home Park.
The term Over 50s Resort is really a marketing term and doesn’t really have any legal definition or meaning.
The crucial difference with Manufactured Homes is that unlike a Retirement Village unit, you actually own the home in which you live. Retirement Village units are held as Leases, or Licences.
With Manufactured Homes you do not own the land and pay a site rental to place your home on the land owned by the operator. Usually the site rental payment would be higher than the service fees payable for a comparable level Retirement Village unit.
There are a series of differences between a manufactured home and a retirement village arrangement. Some of the major differences are:
You don’t own the Home
You pay Service Fees
Usually no Capital Gain or Loss
Significant Exit Fees
Focus on Community
Usually more expensive
You own the home
You pay Site Rental
You get any gain, but bear any loss
No exit Fees
Limited Community Engagement
Usually cheaper to buy
In 2019 the State Government brought in significant changes to the legislation in relation to Manufactured Homes, introducing greater transparency for purchasers, but also very detailed forms to be disclosed – the Forms 1A,1B,1C and 2 that must be reviewed, digested and signed can often run to 100+ pages all up. Accordingly the Government strongly recommends prospective purchasers get experienced independent legal advice prior to entering into this complex contract documentation.
Sunshine Coast Elder Law are experts in dealing with the complex documentation required to be entered into with purchasing a Manufactured Home. Contact them on 1800961622 or visit www.sunshinecoastelderlaw.com.au