Buying into a Retirement Village

There are many variations on buying into a retirement village:

As Inasmuch Community Inc. is registered in NSW there are a range of legal requirements the organisation must adhere to for seniors wanting to purchase a villa in the retirement village; and who may subsequently move into the Aged Care facilities the organisation offers.  In order to be as open and transparent as possible, we list all the main variations that a potential person and/or their family may encounter, however, please note:  situations change just like the law can change, so the first advice we provide is:

Always check your facts first and ensure all due diligence is undertaken prior to making any decision.

Useful questions to ask as part of your due diligence:  (Please see below the FAQs for some Useful Definitions

What is the main legal title or ‘right of residence’ available in the Inasmuch Retirement Village?

The nature of the resident’s right is you do not own the premises. Inasmuch grant you the right to occupy the premises as a ‘non registered interest holder.

Will I have to pay stamp duty if I purchase a villa in the Inasmuch Retirement Village?

No.  Because you are not purchasing the premises from Inasmuch, because we maintain the property ownership.  Inasmuch grants you the right to live in the premises.

Does the entry payment determine the type of ‘right of residence’ in the village?

Yes.  There are different types of entry payments (in-going contribution), depending on what accommodation you choose to live in.  For example:


Independent villas

Your in-going contribution is higher and at a set price.  (Please refer to Independent Living to ascertain relevant prices).

Residential Aged Care

RAD – Refundable Accommodation Deposit.  Please refer to the My Aged Care Fees Explained website for current prices as these are set by the commonwealth government.  You can also obtain an indication by using the Residential Fees Calculator to gain a good idea on what the fees will be.

You can also access the commonwealth government’s free financial advice via their financial information service:  CLICK HERE

Please see below our current in-going contributions (bond) summary for more information – as of 28th January 2016

Independent Living & Service Apartment Pricing & Option Structure

Please Note: Pricing and Option Structure pricing is subject to change.  Hence, please ensure you ask our friendly staff for the current pricing & options structure prior to making a decision.

Does my contribution towards the Inasmuch Community Incorporation legal fees vary according to the type of ‘right of residence’?

Yes for Independent Living Villas only.  This is currently set at (as of 28th January 2016) at $200.00 payable to Inasmuch Community Incorporated.

No.  If you will be accessing Assisted Living and Residential Care.

Does the ‘right of residence’ determine my share of the capital gains or loss I may incur if I sell the independent residence?

No. Because there is no capital gains/loss applicable because you do not own the property – Inasmuch Community Incorporated does.

Is there a ‘departure fee’ and how is this departure fee calculated?

Departure Fees are calculated, depending on which option you choose.  For example:

Option 1 – To pay the in-going contribution with the monthly retention @ 7% for 4 years – for Independent Living incurs a departure fee.  You must live for more than 4 years in the villa to not incur a departure fee.

Option 2 – Non-Refundable Option for Independent Living does not incur a departure fee.  You pay a lesser amount for the villa however you do not receive any refund whatsoever.

Residential Care

You pay the RAD – Refundable Accommodation Deposit which is totally refundable and does not incur a departure fee.

Please talk to our friendly staff for any other potential options that may be available.

Does the type of residence and subsequent right determine whether I will or not be a ‘registered interest holder’?

No. You will be a non-registered interest holder

Are there any recurrent charges I incur after I leave and how are these charges calculated?

Yes.  For Independent Living – Recurrent charges are charged to the resident for a period of 42 days after vacating the villa, i.e. $220.74 per fortnight.

Yes.  For Assisted Living – Recurrent charges are charged to the resident for a period of 42 days after vacating the apartment i.e. $567.64 per fortnight and after 28 days the fee is reduced to $357.70

No.  For Residential Care as the fees are charged on a daily basis until the room is vacated.

Please Note: all prices are subject to change.  Please ensure you check with our friendly staff to obtain the current fees.

Am I liable for any fees to upgrade (reinstatement) the property (outside of the normal wear and tear) after I leave?

Can I set the sale price for my residence or is this set by Inasmuch Community Inc.? If so, can I contract my own real estate agent to sell my villa?

No.  Because you do not own the legal title of the premises – Inasmuch does.

When will Inasmuch Community Inc. provide me with a refund (if applicable) after I move out?

Yes and No.  This is entirely dependent on the Option you choose.  Please see the next question and answer below to gain more information about the Options and which options are refunded in part or in full and which are not.

Does the type of residence determine whether I will receive a refund? If so, how is this refund calculated?

Yes & No. This is determined on the option structure you choose as part of your in-going contribution (bond) you paid. For example:

Option 1 – Independent & Assisted Living Accommodation – You will be refund will be the balance after the retention fee (calculated at 7% daily for a maximum of 4 years) is deducted in accordance with your contract.

Option 2 – Independent Living Accommodation – No refund is applicable.

Option 3 – Independent Living Accommodation – You will be refunded the balance after the retention fee (calculated at 3.5% daily for a maximum of 4 years) is deducted in accordance with your contract.

Option 4 – Independent Living Accommodation – The full in-going contribution will be paid in accordance with your contract.

Independent Living & Service Apartment Pricing & Option Structure

What is the best type of ‘residence right’ to obtain?

At Inasmuch Community Incorporated we only offer one type of ‘right of residence’ and this is the non-registered interest holder.

We understand there are other types of right of residence offered by other retirement villages, however, the decision at Inasmuch is that whilst you pay an in-going contribution (bond) you do not have legal title to the physical asset – the premises.  Therefore we are only able to offer you the ‘non-registered interest’ holder which grants you right of access to live in the premises and access all our services and activities.

Do you have a Product Disclose Statement?

Absolutely.  Disclosure Statement – As At 28th January 2016

You can also access other relevant documents under the Resources/Inasmuch Documents section on this website.

Please ask our friendly staff to provide you with a complete information package so you can read everything at your leisure.

Is there a Cooling Off Period and if so, how long?

Absolutely.  We at Inasmuch want you to take your time and make an informed decision.  By law you must be given 14 days to review the contract before signing.  Once you have signed the contract by law, Inasmuch must give you at least 7 days cooling off period as long as you have not moved into premises within this time period.

During the cooling off period you are able to fully rescind the contract and any monies paid must be fully refunded to you.  If you feel you require a longer length of time, please speak to our friendly staff to negotiate a mutually agreeable time frame.

We also encourage you to seek legal advice and talk to your accountant to ensure that you are fully informed of the contract’s contents and legal rights and responsibilities prior to signing the contract.

There is also a settling in period which by law Inasmuch Community Incorporated must observe.  This means that you are allowed to terminate your contract within the first 90 days of becoming entitled to occupy the premises.  You are entitled to a refund of your in-going contribution (bond), however the timing of the refund is fully dependent on the type of contract you signed.

Departure fees are not payable, however you will have to pay an administration fee, plus costs of any repairs if you damage the property beyond fair wear and tear.

You can obtain more information from the NSW Department of Fair trading website

Also refer to the NSW Dept of Fair Trading – Moving into a Retirement Village for more information on your rights and responsibilities.

Can Inasmuch Community Inc. request I leave the retirement village against my will? Do they have the legal right to do so; and if so, what are my rights in this situation?


However Inasmuch must observe a due process i.e. submit documents to the NSW Civil and Administrative Tribunal.  You can refer to their website for more information on the process the Tribunal takes and what your rights are under this type of situation.

If you are in breach of the village rules, as outlined in the Residents Handbook, Inasmuch has the right to request you to leave.  You do have the right to appeal to the Tribunal to settle the matter.

Rules for Inasmuch Retirement Village

Are there any other legal requirements that either I or the Inasmuch Community Inc. must observe? If so, can I be provided with written documentation – in easy to understand language – what these legal obligations are?

Yes. There are a broad range of legal requirements that Inasmuch Community Incorporated must adhere to. There include, however are not limited to:

NSW and Federal Privacy Acts. This means your privacy must be protected at all times. Senior management, staff and the board takes this legal requirement very seriously. This means unless you provide us with written permission to talk to a nominated person or carer, we cannot divulge any information that you live in the retirement village or discuss any aspects of your care you request we provide to you.

The Federal Aged Care Act 1997. This governs what Inasmuch can and cannot do. Please feel free to ask our friendly staff to provide you with a copy of this Act, which whilst written in legal terms fully outlines what can be undertaken by retirement villages. This also means that the Inasmuch Retirement Village must undergo full accreditation with a reputable accreditation body set by the Department of Human Services. We are proud to say, that the Inasmuch Retirement Village achieves 100% as part of the accreditation process, so you know you and/or your family member will be in very safe hands.

The NSW Retirement Villages Act 2010. This legislation also governs what Inasmuch can and cannot do to maintain its status as a retirement village.

NSW Fire Protection – This is an absolute must to ensure the safety of all residents in case of fire and/or of a bush fire. You can be assured that all fire safety protection measures have not only been thought of but there are plans in place to enable the staff to respond to a fire emergency of any kind. In fact some of our staff are either a Captain or members of the local Sussex Inlet Rural Bushfire Brigade, so you can rest assured they know their stuff.

Australian Taxation Office requirements. Inasmuch Community Incorporated undergoes a full financial audit annually by an accredited Chartered Accountant. You will find the annual financial reports on this website under the Resources Section – Inasmuch Documents.

Please see below user friendly guide to the Aged Care Act and the Retirement Villages Act developed by “Gadens” lawyers in easy to understand language. Whilst not a definitive guide, it will provide you with a reasonably good overview of both pieces of legislation – the Aged Care Act 1997 and the NSW Retirement Villages Act 2010.

A guide to Aged Care and Retirement Villages in Australia

Useful Definitions:

Right of Residence:  This is the legal title of the residence, i.e. Community title, Strata Title, Company Title, Leasehold Title; License and part of the Residential Tenancy Act in NSW.

Stamp Duty: Is the amount that the NSW government collects on the sale of all properties in NSW.  This is approximately around 5% of the sale price.

Entry Payment:  This normally represents the current market value of the property and is paid as a lump sum prior to occupying the premises after the sale has been finalised.

Legal Fees:  Is normally charged by the retirement village to prepare the legal documents (contract) to progress the sale of the property.  Please check first whether you have to contribute towards the cost of the legal fees and what legal documents or contracts are to be developed or whether you are able to simply have your own solicitor (Conveyancer) and pay this person the relevant costs for the exchange of contracts – just like any other type of property sale.

Capital Gains / Loss: This is the amount of money that is generated or lost when you decide to sell the property you first purchased, based on the original sale price you paid.

Departure Fee: The ‘departure fee’ is usually a substantial payment due by you to the retirement village owner after you permanently vacate based on the duration of your stay in the village.

Registered Interest Holder: A ‘registered interest holder’ includes all residence rights under strata, community and company title as outlined above.

Recurrent Fees & Charges: ‘Recurrent charges’ are your contribution to the day-to-day operating costs of the retirement village, usually payable monthly in advance.

Reinstatement: For village contracts commenced on or after 1 July 2000 your liability for reinstatement of your dwelling is limited to rectification of damage beyond fair wear and tear.  This restriction applies regardless of the type of residence right.

References: Seniors Housing Online ; NSW Department of Fair Trading ; CM Lawyers ; Sydney Morning Herald Article