By Lesa Macpherson
There are a number of different Retirement Living Options, and one that is increasingly common is the “Over 50s Resort” Style of living. These Parks are booming all across South East Queensland as they are offering an attractive alternative to the traditional Retirement Village option.
The term Over 50s Resort is really a marketing term and doesn’t really have any legal definition or meaning.
These sorts of arrangements come under the Qld. Manufactured Homes Act, and deal with ownership of (theoretically) relocatable homes within a Manufactured Home Park.
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 under 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. Commonly the site rental payment could 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:
Retirement Village Manufactured Home
You don’t own the Home You own the home
You pay Service Fees You pay Site Rental
Often no Capital Gain You get any gain on the home
Usually no Capital Loss You bear any loss on sale
Significant Exit Fees No Exit Fees
Focus on Community Limited Community Engagement
Historically Manufactured Homes were often cheaper than Retirement Village units, but as the quality of the offering has increased, so have the prices.
The weak point of Manufactured Home Parks in the past has been limited community facilities compared to Retirement Villages, but the industry, seeing this shortcoming, has in recent years significantly increased the level of Community Facilities in their Parks.
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
