B38 - Clustered Housing Targeted to Older People

Some areas have residential subdivisions or developments specifically marketed to people aged in their 50s and over as a downsizing lifestyle option.

Some examples are in Tauranga, Blenheim, Nelson, Hamilton and Christchurch.

Most, but not all of these developments offer a lower cost, smaller-sized home and section. These are not retirement villages as defined under the Retirement Villages Act 2003, but like villages, they consist of compact, low-maintenance homes in a neighbourhood with similar-aged people. Some also offer communal facilities.

Some of the developments have a weekly fee to cover the maintenance of common areas and facilities.

There are various ownership arrangements. Some developments are on unit titles with body corporates; others offer freehold title. There are also examples where the householder owns the dwelling but not the land. A few offer rental accommodation.

Pros

• The homes are an affordable price.
• Neighbours are of a similar age.
• Often the houses are designed for an ageing population, including features such as walk-in showers, wider doorways and hallways, and more storage space.
• Some developments include motor home parking.

Cons

• The ownership arrangement must be considered carefully. For example, buying a unit title is different from buying a standard property with a freehold (fee simple) title. You may wish to seek legal advice about the implications of a unit title and body corporate structure.
• Similarly, carefully research the body corporate fees and rules as these may restrict what you can do on the property. For example, there may be a restriction on keeping a pet.
• Also, some of these developments may be marketed as retirement villages, but they are not registered villages as defined under the Retirement Villages Act 2003, and the protections available under the Retirement Villages Act for residents of registered villages will not apply.

What do I need in order to take this option?

• A development needs to be available in your area.
• You need to be able to afford the property.

Could this option limit my future choices?

No, this option should not limit your future choices any more than a similar property in a general neighbourhood. However, saleability will depend on many factors, including the ownership structure, location and the features of the home.

For more information

Talk to your lawyer, local real estate agents or residential development companies.