When individuals who are 55+ begin to explore their downsizing options, we often get asked how our Life Lease model compares to renting in the general condo market or rental options in a retirement community. We want to provide insight into how these different types of accommodations compare to one another.
Defining a Life Lease Accommodation:
Life Lease is a unique model for 55+ adults looking to downsize, move closer to city centres, move away from home upkeep and be a part of a thriving active adult community. You purchase the right to occupy the unit and remain invested in a private market that grows your equity over time.
Defining a Condo Rental:
When renting a condo, you would pay to rent the space for a period of time. Your rent would include the condo fees, and these rental options are typically not 55+ community buildings. The building can be unpredictable in terms of different lifestyles, varying ages and noise levels - all of which could possibly be disruptive. The rates vary but tend to be quite expensive, especially for larger spaces (2 bedrooms+). You would not have priority to move to more care if you required it and you wouldn't be able to get involved in 55+ programming and fitness opportunities right in the building.
Defining Renting in an Independent Retirement Community:
When renting in a retirement community (in independent living) you are paying for the lifestyle and services this provides. You would typically have all meals included in this accommodation as well as weekly housekeeping. You do not typically have a kitchen in these suites. This accommodation is $5750+ per month depending on the suite size (plus a second occupant fee for couples). You also have the option to opt for Assisted Support, Memory Care or Enhanced Care when you require this. When making a move to this type of space/ accommodation you typically make the move when you need the support it offers to you.
See our current Life Lease listings here!
Let’s Explore the Financials of these Accommodations:
Financial Benefits of Life Lease
There are multiple financial benefits between owning a life lease versus renting in an independent retirement community including:
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No rent payments
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Lower cost of living compared to rental market
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Maintain capital with no upkeep
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Amenities included in monthly fees
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Carefree resale experience
In an independent retirement community rental unit, you are paying for the space as well as the amenities and lifestyle on top of your rent. Renting also does not provide the opportunity to build equity in your living space.
In a condo, you own the property but are responsible for maintenance and condo fees. The capital invested is yours, but the resale process can be influenced by market fluctuations and requires personal management.
Learn more about how a life lease works on our blog: How Does Life Lease Work?
Let’s Explore the Lifestyle Aspects of These Accommodations
Lifestyle Benefits of Life Lease
Life Lease communities often offer a vibrant, turn-key lifestyle that appeals to active adults. These benefits include:
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Controlled community setting
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Social connections with like-minded adults
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No maintenance responsibilities
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Access to boutique amenities
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Health and Wellness professionals on-site
With a condo, there can be unpredictable aspects when it comes to the lifestyle and community. The lifestyle of your neighbours, 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.
Our Garden Villa Townhomes and Atrium Suites life lease housing offers the perfect peace and quiet on 20 acres of green space, even in the heart of Waterloo.
In Conclusion:
As you age, you gravitate towards a more predictable community – one that is a source of comfort, safety, and financial security. Life Lease can provide that for active adults aged 55 and over in Ontario looking for an alternative to other options available in the retirement community market.
