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Here’s a brief look at your options in terms of the ownership of your retirement residence.
Traditional Rental
Most residents of retirement residences and communities are tenants; they pay a monthly fee for their accommodations and accompanying amenities. Across Canada, monthly fees range from $1,800 to $4,500 depending on the size and location of the accommodations, and the quality and array of the amenities.
The fees cover room and board, perhaps light housekeeping, and use of amenities. Personal support and health-care services are generally available for an additional fee. Retirement homes are privately funded and, as rental accommodations, fall under the Tenant Protection Act, which requires a written tenancy agreement for each resident. You can read more about the option of retirement home rentals.
Life Lease
For some time, the retirement lifestyle landscape has included life leases, which give seniors a stake in a community but do not involve traditional home ownership. Residents buy a lease or leasehold interest in their accommodations, giving them a right to occupy their unit and use of amenities, such as dining rooms and recreational facilities.
Life lease communities tend to be sponsored by non-profit organizations, which provide the capital to build the development. Life leases vary greatly in cost, depending on location and the amenities offered by the community, but buying into a development tends to be lower than market value. Read more about life lease retirement homes.
New Trend - Ownership
A new ownership option, the retirement condominium, is gaining a firm foothold in the retirement residence and communities sector. These market value condominiums are attached or linked to a retirement residence offering a range of amenities, including housekeeping, personal support and health services, available for a fee.
The condos are marketed to healthy and active seniors, who want to age in place and be able to access certain services as needed over time. The services are available within the same complex as the need arises. This ownership option may appeal to a couple, each of whom needs varying levels of support from a retirement facility. A one-bedroom retirement condominium in Greater Toronto starts at about $240,000, while a two-bedroom suite can go for $300,000 or more. A monthly fee covers amenities and meals; other services can be purchased individually. Read more about retirement home condominiums in Canada.
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