Renting: An Option with Government Assistance

Renting is an increasingly attractive alternative to tying up your cash in the family home or ‘buying' into a traditional retirement village. It may give you more money to live on.

Augmenting this is the support the Federal Government provides in the form of rental assistance: if you are on any pension, you can receive rental assistance if your rent is greater than $46 per week, allowing you to collect up to $52 extra per week or $104 per fortnight on top of your pension. Please see the chart below.

You can even have a half way bet: if you own the house but rent the land it stands on, you can still receive the government rental assistance.

The two most popular ‘rental models' are full rental service villages and residential parks. Full rental service villages usually offer a one-bedroom house in a village layout. Your meals are often included in the weekly rental fee, which is normally covered by your pension and rent assistance. As a rule, these villages are very well presented with generous gardens and a professional manager who lives on site.

The second village option with a rental subsidy is the residential park. These villages usually appeal to younger, more active couples and retirees, and operate under different state laws. Many are styled more like resorts and offer luxury that often exceeds most retirement villages. The concept is you rent the land, but own what you put on the land. Because there is a rental accommodation component, you can still apply for rental assistance.

The cost of buying in is lower as you are buying the house only, not the land. There is no stamp duty or departure fees and you get all of the sale proceeds when you sell.

If you need money to live on - with a bit of government help - renting has significant appeal!

Rental Assistance Figures correct at time of printing. Check with Centrelink before making any decisions.

Other stories in this section:

• International Research Has Led Me to What I Call: The 4Cs of Living Well
• 10 Year Cost Comparison: Village Or Stay In Family Home
• "Try Before You Buy" - Spend a Week in a Village Before You Buy - Aevum
• Challenging Conversations Create Change - Is this the way you want to live?
• Top 15 Questions - Questions about the Retirement Villages Act

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