It's aged care Jim, but not as we know it!

Supported Living is a relatively new concept out of the US that is making significant inroads into the Australian retirement village market.

In essence, Supported Living is where residents live in their own studio, one, two or three bedroom apartment, and any care services that are required – from simple cleaning & laundry through to palliative care – are brought to the resident in the home. This is different to most retirement villages that offer aged care, in that residents are not forced to move out of their independent living unit into an hostel or hospital environment, which in some occupancy contracts can be forced on the resident at the discretion of the retirement village operator. Residents can therefore stay in the comfort of their own home and couples do not have to separated in the event that one spouse needs a higher level of care than the other.

The Supported Living concept is becoming the preferred option for people who want  to avoid the horrors of Australia’s aged care system. Ironically, the reason why the Supported Living concept is so successful (for both operators and residents) is that it operates under state retirement village legislation and not the Commonwealth Aged Care Act.

Residents buy a right to occupy a Supported Living unit through a lease or licence under what is known as a Deferred Management Fee scheme, meaning that there is an Ingoing Contribution (the purchase price), a village fee (charged weekly, fortnightly, monthly or quarterly, generally around $100-120 per week), a deferred or departure fee upon exit (calculated as a % of the purchase price or re-sale value of the unit) and any capital gains upon sale of the unit are typically split with the owner. For more information on Deferred Fee schemes check out our video tutorial HERE. Any services that are required such as cleaning, meals, laundry or personal care or paid for separately and in some instances may be subsidised by a government benefit.

I am a huge fan of Supported Living for the following reasons:

• The physical product is significantly better than what you find in Aged Care hostels (I would put my Mum into one of these, whereas I probably wouldn’t put her into a typical nursing home);
• The business model is sustainable for the village operator;
• Couples are not separated if one spouse requires a higher level of care;
• Retirees who lack mobility experience better social exposure;
• Most, if not all, of the care services are provided on site by the village operator;
• Care can be brought in quicker, and for shorter periods of time than when you use an external provider; and
• The purchase arrangements, while a little more confusing than what most people are used, are market-driven and transparent, unlike the aged care bonding system.

Is Supported Living appropriate for you?

I would encourage you to investigate a Supported Living option if you:

• Are aged in your late 70′s or beyond;
• Experience on-going health issues;
• Expect to start needing care or assistance with some daily living tasks in the next 12-18 months; and
• Couldn’t bear the thought of living in an aged care hostel.

Just make sure you talk to us at Find My Retirement Home first to make sure you get independent advice!

If you are interested, here are a couple of Supported Living operators:

Ocean View Banora Point (QLD/NSW border)

Tall Trees (2 x properties in south Brisbane suburbs)

Seasons Supported Living (2 x properties in north Brisbane suburbs, 1 under construction on the southside, 2 x Sunshine Coast)

Sunrise Supported Living (VIC and northern NSW)

If you know of any others, please let us know!