As we age, our living situations and lifestyle choices significantly shape our quality of life. Whether you are considering downsizing to a condo or embracing a retirement community, we recognize that there are many personal factors to consider. With over 25 years of experience helping individuals with their retirement journey, we’ve encountered a wide range of questions.
One commonly asked question is about the difference between our Life Lease accommodations and condos found in the general market.
Our goal is to help you understand the difference. In this article, we will provide some valuable insight into our Life Lease accommodations versus condo living.
Life Lease:
Most people come to us with some understanding of how a life lease works, but are worried that their investment will be lost with a life lease property. There are so many existing models for life leases in Ontario, that it can lead to general confusion in the early stages of exploration.
Fortunately, our life lease follows a fair market model, comparable to what we see in the direct real estate market! Although you are not the official owner of the property, you are purchasing the right to occupy it. Within our life lease model, you are investing in a privately controlled market that has shown 20+ years of increased market value.
Not only that, but the process is simple and sets you up for a turn-key lifestyle.
After purchasing the right to occupy the property, a monthly fee is paid which includes a blend of costs relating to property tax, water usage, maintenance, groundskeeping, garbage removal, capital reserve contributions, and access to amenities and services. This also includes access to a team of health and wellness professionals who host engaging wellness and social opportunities for you to enjoy right on site.
Once you are ready to move on from your life lease home, Luther Village on the Park completely handles the resale process. Our model ensures that if your unit does not sell within 9 months, we will buy it back and you will be paid out accordingly. With that process, all capital gains are split equally between yourself and Luther Village on the Park.
It is our history of appreciation and our carefree resale process that sets your investment up for success.
Condo Specifics:
Condos are more widely known as an option when considering downsizing your space and minimizing your upkeep. There are similarities between a condo and a life lease accommodation, but the major distinctions are the purchasing model and the community you become a part of.
With a condo, you are the owner of the property, but with that comes the maintenance and condo fees. Although some amenities are included within the condo lifestyle, it does not typically compare to the amenities offered within a life lease community.
With the ownership of your unit, the capital required to purchase said property is yours and can be recouped during the sales process. This resale process is also subject to fluctuating market conditions, and you will ultimately be responsible for managing the preparation and sale of the property yourself.
When purchasing a condo within the general market, there can be unpredictable aspects when it comes to the lifestyle and community. The lifestyle of your neighbors, the varying stages of life they may be in, the noise quality between units, and how the condo is managed are just a few examples.
When contemplating the retirement lifestyle, it is easier to predict a life lease community as it is catered to older adults aged 55+ seeking an independent and active lifestyle with easy access to amenities.
You can always speak with our team to explore the differences further.
Making The Decision:
So, how do you really make the choice between a life lease accommodation and a general condo?
The best way to think about this decision is to consider your timeframe. You’re likely 55 years or older and at a stage where you want to live an active adult lifestyle, which can happen by downsizing or simplifying your living situation.
Here are some questions to consider and help you reflect on what would be best for you:
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Do you love a walkable location?
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Do you want to be part of a community with various amenities right on site?
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Do you want to be near friends and family?
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Do you want to partake in activities that keep you healthy and focused on overall wellness?
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Do you want to be close to and have easy access to health and wellness resources and services?
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Do you want to continue with the upkeep of a home or trade that in for a more simplified situation?
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Do you want to be in a community with all ages or one where you are surrounded by peers? (55+)
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Do you want to be involved in hobbies and explore new interests?
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Do you want to purchase in the general market or invest in a private, stable market?
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Does accessibility within the unit matter to you (wide doorways, walk in showers) as you age in place?
We know that this choice goes beyond who you surround yourself with and where, but these are important questions you will want to ask yourself!
Conclusion:
Both life leases and condos offer benefits that will fit a similar lifestyle. Life lease provides a more engaging turn-key lifestyle dedicated towards those 55+, while condos may not. Your investments are valued in each, but both have different benefits in the process. The impact that a choice like this has on your life is significant and we understand the stress that comes along with it. Our goal is to help you reduce that decision fatigue and support you in the decision-making process.
Ultimately, what you value most for an independent lifestyle will decide what is right for you as you start a new chapter!
To learn more about our life lease housing, explore the upcoming opportunities at Luther Village on the Park.
