The retirement living sector is growing rapidly in Australia as the population ages and demand increases for a spot in a retirement village.

For many people, the idea of having someone on site to help with property and garden maintenance is enough for them to make what can be a major change later in life. For others it is about the ready-made community and the easy access to social activities and a network of friends. And, as developers seek to entice younger and younger residents, they are dialling up the luxury and add-ons.

The type of accommodation varies widely between villages from apartments, villas and houses. Some retirement villages have a resort-style feel with a range of onsite amenities on offer including swimming pools, fitness centres, cinemas and cafes and there are often different dining and cleaning options available for residents.

Research released last year by the Property Council of Australia shows that retirement village residents are 41% happier; 19%less likely to require hospitalisation after only nine months; 15% more physically active; five times more socially active; twice as likely to catch up with family or friends and have reduced levels of depression and loneliness.

One important factor that sets retirement villages apart from residential aged care facilities is that retirement village living is considered independent living, generally without medical or personal care available through the village itself.

Different laws

Some residential retirement complexes include both independent living homes and aged care facilities. This set up can make the transition to aged care, if needed, less stressful especially if one member of a couple needs greater care.

However, the two operations are regulated quite separately under different laws and there are no guarantees that you can move smoothly from one to another when you want to.

Unlike assisted living or residential aged care, retirement villages are not regulated by the Federal Government but are governed under state and territory retirement villages acts. As such, the rules can vary between jurisdictions and villages.

Considering the costs

Buying into a retirement village can be a significant expense, making it important to understand the legal implications and ensure you carry out a thorough check to see if it is affordable.

In most cases you don’t own the village residence. A common arrangement is for a lease or loan type arrangement, where residents buy the right to occupy a home within the village for a specific period.

The level of fees and how they are set is a private commercial arrangement and not governed by any laws. The costs could be roughly what would be incurred if you owned your home. As well as an upfront price, there could be ongoing maintenance fees and deferred management fees, which reduce the amount you receive when you leave the village.

Knowing your rights and obligations, as well as the initial costs and ongoing fees and expenses are key considerations to a successful transition.

Financial and legal advice is highly recommended to ensure clear understanding of the purchase arrangements and contracts. Their level of complexity is not to be underestimated.

Extra services and support

It is most people’s aim to remain living independently in their own home for as long as possible.

For people living in retirement villages, this could mean accessing government subsidised home care services – for example, through the existing Home Care Packages Program. Depending on a person’s health, these services could include cleaning and domestic assistance as well as personal care, such as assistance with showering or the delivery of pre-cooked meals.

Following the introduction of recent reforms, a new Aged Care Act aims to increase the subsidies for services and equipment to assist people staying at home.

A new Support at Home Program will replace the Home Care Packages Program from 1 July 2025. The Commonwealth Home Support Program will transition after 1 July 2027.

The reforms also include significant changes to the funding arrangements for residential aged care.

For both home care and residential aged care, the focus will be increasing the quality of services and the rights of individuals, while at the same time looking for greater contributions from people accessing the services.

Retirement villages are largely lifestyle considerations, but you also need to consider your current and future care needs to ensure that the village you choose will remain suitable for at least the medium term.

Contact us to discuss your plans for retirement.

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Money sure can stir up a lot of emotions in relationships. From arguments over who spent too much on takeout to disagreements about saving for a house, finances can be a major stressor for couples. So, let’s dive into why money can be a relationship minefield and how you can navigate those financial trenches with ease.

Here’s a hint: it’s not just about the money, but about what money represents to you both.

How common are money issues?

You’re not alone if you find money a hot topic in your relationship. Research shows that financial disagreements are more common than you might think. A recent survey showed nearly a third of couples frequently argue about finances.Additionally it was revealed that one in four people hide financial information from their partner.

These statistics highlight that financial disputes are not only prevalent but also impactful. But don’t worry—there are plenty of ways to turn these potential powder kegs into opportunities for deeper understanding and cooperation.

More than money

When thinking about money as a point of conflict, it’s important to remember that conflict comes from our big emotions about what money represents to us: security, power, control, status, acceptance.

We all have different attitudes to money that come from our past experiences. While one person may see money as the freedom to do what they want, their partner may prefer to save every penny because they value the security that comes with having savings.

Tips for financial harmony

It’s important when it comes to resolving money issues to dig a little deeper and figure out the underlying issues and consider the strong emotions behind money issues. Here are some tips to manage money matters with grace and cooperation:

Keep the lines of communication open

Given how everyone’s relationship with money is quite different, it’s unlikely you’ll always be on the same page when it comes to your finances, and that’s where open and honest communication comes in.

Think of financial discussions as regular tune-ups for your relationship. It’s not just about big financial decisions; it’s about checking in with each other’s financial goals, concerns, and spending habits. Set aside time for regular financial chats, whether it’s a monthly budget meeting or a quick conversation over coffee. Keeping the lines of communication open can help catch small issues before they become big problems.

Sharing financial goals and respecting individual aspirations

Having common financial goals can be like having a shared GPS for your money. Whether you’re saving for a dream vacation, a new home, or a renovation, setting mutual goals provides direction and motivation. Create a plan that includes both short-term and long-term objectives, this way, both partners feel invested in the financial journey.

While working towards shared goals is important, it’s also essential to respect each other’s individual financial aspirations. This might mean each partner having some freedom to manage their personal finances and make individual financial decisions.

Budget is not a dirty word

Budgets might sound boring, but they’re actually a fantastic way to manage your money and work together to achieve your financial goals. Sit down together and create a budget that covers all your expenses, savings, and fun money. Tools like budgeting apps can help you track your spending and stay on target. Remember, a budget should be a flexible guide, not a strict rulebook and make sure both partners have a say in how the budget is structured.

Be transparent about finances

Transparency is key to building trust. Share information about your income, debts, and financial goals with each other. If you’re planning a big purchase or making a financial decision, discuss it openly. Remember, financial transparency is about more than just sharing numbers; it’s about understanding each other’s financial mindset and values.

Money may be a common source of stress in relationships, but with the right strategies it’s possible to turn financial challenges into opportunities for growth and collaboration. Remember, it’s not about avoiding money issues but about managing them in a way that acknowledges the strong emotions often associated with your finances and strengthens your relationship. So, take a deep breath, and tackle those money matters together—you’ve got this!

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Changes to aged care fees are coming, and they will impact both home care and residential care. After a long wait and lots of speculation, the government has released details of the proposed changes. While some people will see their fees increase, the good news is that aged care remains heavily subsidised, and fees will continue to be based on your financial situation to help with affordability.

Here’s what we know so far:

• The government will continue to cover 73% of the cost of residential care and 89% of the cost of home care.
• These changes are designed to improve the quality of aged care and help providers meet growing demand.
• Most changes will only apply to people starting home care or entering residential care from 1 July 2025.

If you or a loved one need care soon, it might be worth getting advice to see if moving before the changes take effect could save you money and understand how you will be affected. While there’s still a lot to unpack, here’s a quick overview of what’s planned.

Proposed residential care changes

1. Room price cap: From 1 January 2025, some room prices might start to rise. Providers who want to charge more than $550,000 currently need approval, but this cap will increase to $750,000, making it easier for providers to increase prices.

2. RAD retention amount: You can pay for your room with a lump sum (Refundable Accommodation Deposit or RAD) or as a daily fee. Currently, RADs are fully refundable when you leave care, but from 1 July 2025, you may lose up to 10% of the RAD you paid.

3. Indexing rent: If you choose to pay a daily fee instead of a lump sum, this “rent” (called the Daily Accommodation Payment or DAP) will be indexed over time, meaning the amount could increase as time goes on.

4. Living expenses: Your contribution to daily expenses like food, laundry, and electricity could rise by up to $12.55 per day, depending on your financial situation. Some providers may charge more for higher standards or quality, so it’s important to check prices before deciding on a place to live.

5. Care expenses: Depending on your finances, you may be asked to contribute more to your care costs, which could include services like entertainment, bathing, and mobility assistance. The government will still cover most care costs, but your portion could go up by around $10 per day, with the lifetime cap rising from approximately $80,000 to $130,000.

6. Assessment of your home: No changes are planned for how your home is assessed when determining what you can afford to pay. If a spouse or “protected person” lives there, it remains exempt; otherwise, only approximately $208,000 of its value (indexed) will be included in financial assessments.

Proposed home care changes

1. New Support at Home program: A new program will combine the current home care options into 10 levels of care packages to better meet the specific needs of individuals.

2. Higher contribution fees: While clinical care will be fully covered by the government (up to the available budget of your care package), you may have to pay more for services like cleaning and gardening.

3. Means-testing: Your contributions to home care will now become means-tested, picking up assets as well as income, according to Centrelink rules.

The higher costs will mostly impact self-funded retirees and some part-pensioners but everyone could face higher costs (and bigger decisions), making it essential to carefully choose care providers and understand accommodation costs. The changes may simplify some of the confusion we’ve seen under the current system, but now, more than ever, it’s important to get advice to understand what you’ll need to pay and how these fees might change as your financial situation evolves.

Planning ahead is key, and some decisions can feel overwhelming. If you have any questions or need help planning for aged care, call us at 03 9723 0522, and we can guide you.

For those who are wanting to get started on the homebuying journey, going it alone can have its challenges compared to a couple but there are ways to make flying solo easier.

As a solo buyer, even just saving up for a deposit can feel like scaling Mount Everest without a rope. Without the benefit of a dual income, it takes longer to stash away that 20% deposit you need to avoid extra costs like Lenders Mortgage Insurance. And when it comes to getting a loan, lenders often see solo buyers as riskier, which can mean higher interest rates or stricter lending criteria.

However, around a quarter of homebuyers are buying by themselves, a figure that has stayed reasonably stable over the past 8 years, so if you are a single purchaser, you are not alone by any means. Let’s look at some ways you can position yourself for success as a solo buyer.

Strategies for success

Start with your financials

The first step is to get a clear picture of your finances and your capacity to save the deposit. Calculate your borrowing capacity and set a realistic savings strategy that includes paying down any debt such as credit cards and personal loans.

Create a budget that covers not just the purchase price and loan repayments, but also ongoing costs like maintenance, utilities, and council rates.

Potential lenders will be interested in your credit score. Take steps to improve your score by paying bills on time, reducing credit card balances, and correcting any errors. You can check your credit score through various credit reporting agencies such as Equifax, Experian, or Illion.

Know what you are prepared to compromise on

Explore different neighbourhoods or suburbs within your budget. Sometimes, areas just a little further from the city centre can offer more affordable options. Be open-minded about the type of property and the condition of the property too. Know what your ‘must haves’ are and what you are prepared to compromise on to stay within budget.

Do your homework and think long term

When you find a property you like, do your due diligence. Attend inspections, research the market value, and be prepared to negotiate. Getting pre-approved for a mortgage can strengthen your position as a serious buyer and give you an edge in negotiations.

Consider the future when making your decision. Think about resale potential, rental yields if you decide to lease the property down the line, and the overall growth prospects of the area. Buying a home is an investment in your future, so make sure it aligns with your long-term goals.

Getting help on the way

You also don’t necessarily have to go it totally alone. One option is teaming up to buy with friends or family. You could pool resources to boost your buying power and share the load of mortgage repayments and other expenses. Just make sure to have clear agreements in place from the get-go to avoid any potential conflicts down the road.

You could also consider using a guarantor—typically a close family member —who agrees to support your mortgage application by providing additional security should you become unable to make repayments.

There are also options like rentvesting, where you buy a property and rent it out to tenants while you keep renting where you currently live. This way, you’re getting a foothold in the property market and building equity, while you live in your preferred location.

And don’t forget about government grants and incentives tailored for first-time buyers. These can be total game-changers. Some grants can help cover your deposit or chip away at pesky expenses like stamp duty, making that dream home more within reach. We can help you investigate the options available to you.

Taking that journey

Buying a home on your own might seem like a daunting task, but it can also be an incredibly rewarding one. It’s about more than just bricks and mortar—it’s about creating a space that’s truly yours, where you can make memories and it can be a fantastic way to set yourself up for a financially secure future.

With careful planning, determination, and the right support, you can make your dream of homeownership a reality. We are here to help.

Deciding whether to buy a new home before selling your current one or to sell your home before buying a new one is a significant choice, and it can feel a bit overwhelming. Both options come with their own set of benefits and challenges, and your decision will be influenced by various factors, including the state of the housing market, your financial situation, and your personal preferences.

Let’s explore these considerations to help you make the best choice for your next big move.

Buying before selling

If you choose to buy your new home before selling your current one, you get to enjoy the luxury of time. You won’t be pressured to find a new home quickly because you’re not in a rush to sell your existing property. This approach allows you to take your time exploring different neighbourhoods, visiting open houses, and making thoughtful decisions without the stress of a ticking clock.

Once you’ve purchased your new home, you can move in at your own pace. This can make the transition smoother and less stressful, as you may not need to worry about temporary housing or moving twice.

However, buying before selling does come with financial considerations. A bridging loan can assist you in managing this period while you look to sell your existing property. This is a short-term loan, typically between 6 and 12 months that can help you finance the purchase of a new property while you sell your current property. While this type of loan can provide extra time you need to sell your existing property, it’s important to remember that you’ll need to demonstrate that you are able to pay your original home loan and the bridging finance loan at the same time during the period between buying and selling.

Additionally, if the market fluctuates while you’re holding both homes, you might find yourself needing to adjust the selling price of your old home, potentially affecting your financial plans.

Selling before buying

On the other hand, selling your home before buying a new one offers a different set of benefits. When you sell first, you gain financial clarity. You’ll know exactly how much money you have available for your new home, as the proceeds from the sale can be used as a down payment. This clear understanding of your budget can make the home-buying process less stressful and more straightforward.

Another advantage is that you become a more attractive buyer in the eyes of potential sellers. Without the need to sell your old home first, you’re in a stronger position to negotiate and make offers. Sellers often prefer buyers who don’t have contingencies, which can give you an edge in competitive markets. This increased leverage can be especially valuable if you’re looking to purchase in a rising market, where desirable properties might be snapped up quickly.

Yet, selling before buying also presents its own set of challenges. Once your home is sold, you may need to find a new place quickly, which can be stressful if the market is competitive or if you have specific needs. There might be a period where you’re between homes, which could necessitate temporary living arrangements. This could be inconvenient and might add to the stress of your move.

Timing the market

The state of the housing market plays a crucial role in your decision-making process. In a rising market, buying before selling can be advantageous. You’ll have the opportunity to lock in a new property at current prices before they go up further. However, you need to be prepared for the financial strain of carrying two mortgages.

Conversely, in a falling market, selling before buying might be the wiser choice. You can sell your current home and then take your time finding a new home, potentially benefiting from lower prices in the future.

Making the right choice for you

Ultimately, whether you decide to buy before selling or sell before buying depends on your individual circumstances. Consider your financial situation carefully—do you have the resources to handle two mortgages, or would you prefer the clarity of knowing your budget before making a purchase? Think about the current market conditions and how they might impact your decision. And, of course, reflect on your personal preferences and priorities for your next home.

Whatever your decision we can helping you navigate the financing complexities of buying and selling to ensure that your transition is stress-free as possible.

A cooling market as we head into the warmer months

Australia’s property market is finishing the year showing a softening in prices with annual growth in national home values continuing to ease, reducing to 5.5% over the 12 months ending November, down from a recent peak annual growth rate of 9.7% in February.

CoreLogic’s national Home Value Index (HVI) has reported a quarterly increase of 0.5 per cent, compared to around 2 per cent the same time last year. In line with a softening market the HVI recorded a monthly movement of just 0.1% – the smallest monthly gain since the growth cycle commenced in February last year. The median dwelling price in Australia now sits at $812,933, up from the same time last year at $753,654.

The weak positive movement over the quarter was supported by the mid-sized capitals, led by Perth, followed by Adelaide and Brisbane, offsetting declines in Darwin, Canberra, Melbourne and Sydney.

Increased stock levels contribute to lower growth

A rise in advertised stock levels has contributed to lower growth in home values, particularly in the weakest markets. Advertised listings have increased around 16 per cent since the end of winter across the combined capitals, with Perth (+33%) and Adelaide (+25%) recording the largest lift in advertised stock levels through the spring season, albeit from an extremely low base.

Alongside the rise in advertised supply, the number of home sales is declining. With higher levels of advertised supply and less purchasing activity, selling conditions have loosened.

The outlook

The housing outlook is likely to continue to be impacted by rising advertised stock levels and a slowdown in purchasing activity.

Interest rates appear to be on hold for the medium term. The October inflation indicator came in at a healthy 2.1% for October, well inside the RBA’s 2-3% target range; but the RBA will be looking through the headline results and focusing on the core inflation outcome, which unfortunately moved in the wrong direction in October.

One positive is labour markets are holding tight, with the unemployment rates holding at around 4 per cent for the past couple of months. Additionally, low levels of new housing supply will persist into the near future.

On the downside, affordability challenges continue to be felt across most sectors of the housing market. Economic activity is soft, and households have largely drawn down their savings buffers accrued through the pandemic. Looking at affordability measures, debt servicing ratios were at a record high in the last quarter and dwelling values relative to household incomes were also close to record highs.

Dwelling values over the quarter

Melbourne

The Victorian capital posted a -0.4% quarterly move according to CoreLogic figures, taking the city’s median dwelling price to $776,949. Investors should take note that the gross rental yield figure for Melbourne now sits at 3.7%.

Sydney

In the three months to October’s end, Sydney experienced a very subtle dwelling value change of –0.5% resulting in a median of $1.196 million. The gross rental yield for the Harbour City is currently the lowest of the capitals at 3.0%.

Brisbane

The Queensland capital has again recorded the second most expensive spot for dwelling values at $886,540, although growth is softening after a quarterly rise of 1.8%. Brisbane has recorded a gross rental yield of 3.7&.

Canberra

The national capital recorded a decline of -0.3% during the quarter with the median now sitting at $851,731. For Canberra, the gross rental yield is 4.0%.

Perth

Continuing its lead as the best-performing capital over the quarter, Perth jumped 3% in three months taking its medium to $808,090. Perth recorded 4.2% gross rental yield.

For more information about how you might be able to purchase a property in the current market, get in touch with us today.

Note: all figures in the city snapshots are sourced from: CoreLogic’s national Home Value Index (November 2024) 

If you have any questions or need any information please give us a call on 039723 0522.