Most pre-retirees approach retirement accommodation as a property decision: keep the family home, downsize, buy into a retirement village, or rent – whereas, in reality, it is a planning decision with long-term consequences. While we have seen clients make excellent choices that protect their independence for years, we have also seen avoidable mistakes that create stress, force a second move, or place unnecessary pressure on family members later on.

The challenge is that retirement accommodation is not only about the unit itself – it’s about the support system around it in terms of safety, maintenance, access to healthcare, community, and how easy it is to live day-to-day when your energy and mobility are not what they used to be. Below are four common options and the practical issues we encourage clients to consider before they commit.

1. Staying in your own home: Comfort and control – with growing responsibility

Many retirees prefer to stay where they are because the home is familiar, they have pets, and it often has space for hobbies, visitors and a garden. And for some, it is the best option, especially if the property is manageable and the area is safe. The mistake we see is assuming the home will remain ‘easy’ to live in, keeping in mind that a house can become demanding over time, especially as maintenance and security start to require more effort and coordination.

Common pressure points include:

• Maintenance creep: Roof leaks, painting, plumbing, pool care, gutters, garden work and general wear and tear.
• Security risk: Retirees are home more often and become more predictable in their routines.
• Location drift: What was once a convenient suburb can feel far away when driving at night becomes uncomfortable or when health appointments become more frequent.
• Unplanned support: Family members end up arranging services, repairs and help, often from a distance.

If staying in your home is the plan, it helps to make it intentional by reviewing the property through an ageing lens. Is there step-free access? Are the bathrooms safe? Is there good lighting? Are security upgrades required? Is there an emergency response option? It also helps to have a clear plan for ongoing maintenance if you are no longer able to do it yourself.

2. Life rights: Strong lifestyle support — but understand what you are buying

Life rights arrangements are popular because they often provide security and access to services without requiring full ownership. In general terms, this involves paying a lump sum to secure the right to live in a unit for life (or for the period defined in the contract). When you leave or pass away, a portion of the value is typically refunded to your estate, subject to the contract terms.

The benefit is that many life rights developments are designed around the realities of ageing: controlled access, on-site services, a community environment, and often a pathway to assisted living or frail care. In fact, for many clients, the biggest advantage is not the life right unit, but the support system around it. That said, it is important not to view life rights like a normal property purchase, because it is not. Before committing, we always encourage clients to check:

• Refund terms: What percentage is refundable, what deductions apply, and what triggers payment.
• Timing: How long repayment typically takes after exit, and how resale/occupation rules work.
• Levies and escalation: What levies cover, and how increases are calculated.
• Care access: Whether assisted living or frail care is guaranteed, and how those costs are structured.
• Rules: Especially around pets, visitors, renovations and use of facilities.

While life rights can be an excellent option for retirees who value security and continuity of care, it’s important to understand the contract details because they can affect affordability and estate planning.

3. Sectional title in a retirement estate: Ownership and independence — with levy and rule commitments

A sectional title unit in a retirement estate appeals to retirees who want ownership and control, while also benefiting from security, convenience and shared facilities. Many estates offer lifestyle features such as walking paths, a clubhouse, a pool, sometimes a gym, organised activities, and practical services that make daily life easier. The appeal is a more ‘lock-up-and-go’ than a free-standing home, plus better day-to-day security and a built-in community environment.

However, the mistakes we commonly see are:

• Underestimating levies: Levies increase, and special levies can arise for major projects.
• Not understanding maintenance responsibilities: Some owners are surprised by what they must maintain themselves versus what the body corporate covers.
• Ignoring rules that will affect daily life: Pets, visitor policies, noise, renovations, and sometimes vehicle or parking restrictions.
• Buying the wrong lifestyle fit: Some developments are active and social, while others are quiet and clinical. It’s important, therefore, to scout out the complex to know what type of environment you are buying into.

Many retirees find the sense of community, regular contact and activities to be a positive. However, the practical downside is that some retirees find it difficult to be surrounded by older and sometimes unwell people. The key is not to avoid retirement estates entirely, but to choose one that matches your temperament and preferred lifestyle. Ideally, visit at different times of day, talk to residents, and get a sense of how the place feels in real life.

4. Renting in a retirement home: Flexibility and simplicity — with less long-term certainty

Renting in a retirement home can be a smart strategy, particularly for the early years of retirement. This option offers flexibility while you decide where you want to settle, and it reduces the maintenance burden. Some retirement villages offer rental options that include services such as meals, housekeeping, transport, and access to basic support, which is appealing, especially for single retirees.

The mistakes we see with renting are:

• Not planning for escalation: Rental increases can become a problem if your income is fixed and inflation runs ahead of expectations.
• Assuming tenure is guaranteed: Lease terms matter, and availability can change – so be sure to check the fine print.
• Not checking what services are included: Be clear on what services are included and what services you will need to pay extra for. For example, does ‘meals included’ mean three meals a day or just a daily main meal?
• Overlooking medical support: Some rentals are lifestyle-only and do not offer meaningful care options if health changes.

Renting can work particularly well for retirees who want to downsize without committing capital immediately, or who want to stay liquid for other planning reasons.

The practical checklist we use with clients

As is evident from the above, there is no ‘best’ option, and it’s important to make a decision based on what supports your independence and fits your budget optimally. Before deciding, we encourage clients to evaluate these issues honestly:

• Security and ease of living: Is it genuinely lock-up-and-go? Who deals with maintenance? What happens when you are away?
• Ongoing costs (not just the purchase price): Levies, rates, insurance, services, meal plans, care costs and escalation assumptions. This is where affordability often unravels.
• Access to healthcare and support: How close are hospitals, doctors and pharmacies? Is there on-site nursing? Is there assisted living or frail care, and can you access it when needed?
• Social environment and mental stimulation: Is there a healthy community? Are there activities, learning opportunities, exercise options, and easy ways to stay engaged?
• Pets and lifestyle needs: If pets are important, treat this as a non-negotiable. The emotional value of a pet to an older person is often underestimated. Also consider gardens, outdoor access, walking routes and sunlight.
• The ‘second move’ risk: One of the most common mistakes is choosing accommodation that works today but has no answer for tomorrow. If health changes, will you need to move again? If so, can you afford the disruption financially and emotionally?

We encourage clients to think of retirement accommodation as a decision made in stages, keeping in mind that your needs at 60 may be very different from your needs at 75. If you can choose an option that gives you flexibility, keeps costs predictable, and reduces future disruption, you typically reduce the chance of regret. From experience, we know that the best decisions are usually the least complicated ones that include realistic costs, manageable maintenance, sensible access to care, and a lifestyle that keeps you safe, active and connected.

Have a super day.

Sue