Retirement village guide · 2 min read
Entry price vs property purchase: what you actually own
Paying $600,000 to enter a retirement village is not the same as buying a $600,000 home. In most contracts you are buying a right to occupy, not the unit itself.
Last updated 8 May 2026
Entry price vs property purchase: what you actually own
When you "buy" into a retirement village, you almost never own the unit the way you own a freehold house. The entry price secures a contractual right to live there. The legal structure determines what you walk away with on exit.
The three common structures
Loan-licence (most common in NSW and VIC traditional villages). You loan the operator the entry price and receive a licence to occupy the unit. You do not appear on title. On exit, the loan is refunded — minus DMF, refurbishment, and any other contractual deductions.
Leasehold. You hold a long lease (often 99 years) registered on title. You can will or sell the lease subject to operator approval, but the underlying land remains the operator's. Capital gain treatment depends on the contract.
Strata or community title. You actually own the lot, with a Certificate of Title in your name. Most over-55s lifestyle communities and a small number of premium retirement villages use strata. You can sell on the open market, though the village may have a right of first refusal or a DMF clause regardless.
Why the difference matters
- Capital gain. In a loan-licence, the operator usually keeps most or all of the capital gain on resale. In strata, you keep it.
- Resale. Loan-licence units can only be re-sold to a resident the operator approves. Strata units can be sold openly.
- Estate planning. A strata unit forms part of your estate as real property. A loan-licence is a contractual debt owed by the operator — recovered subject to the contract terms and state-mandated buyback timeframes.
- Stamp duty. Strata purchases attract stamp duty. Loan-licence and most leasehold structures do not.
What "entry price" actually buys
Read your contract for the literal definition. Words like "ingoing contribution," "loan amount," "premium," and "purchase price" mean different things in different states. The Retirement Villages Act in your state (NSW 1999, VIC 1986, QLD 1999, SA 2016, WA 1992, Tas 2004) requires the operator to disclose the legal structure in pre-contract documents — the Disclosure Statement and General Inquiry Document in NSW, the Public Information Document in QLD, and equivalents elsewhere.
If the document is more than five pages and you have not had a solicitor read it, you should not be signing.
Frequently asked questions
Do I get a Certificate of Title?
Only if the village uses strata or community title. Loan-licence and most leasehold structures do not put you on title.
Can I rent out my retirement village unit?
Almost never. Most contracts prohibit subletting because the village is age-restricted and operator-managed. Strata over-55s communities sometimes allow it; traditional villages rarely do.
What happens to my unit if I die?
In a loan-licence or leasehold, your estate gets the refundable balance after the operator resells. In strata, the unit is sold by the estate the same as any other property.
Is stamp duty payable?
On strata purchases, yes. On loan-licence and most leasehold structures, generally no — but state rules vary, so confirm with a solicitor.
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