This is a part real estate, part financial planning kind of enquiry, so I hope I've posted it in the right area. I did a forum search and was surprised to find not much existing discussion on this issue - any input is welcome, especially from retirees who've done it or advisers who have had clients look at retirement villages. My parents are in their early 60's and have come upon a retirement village which they are very keen on, in a unique seaside location (walking distance to metropolitan beach). Everything is brand new with nice facilities. As well as the entry cost (in this particular case it's in the $450-$500k range) I am concerned about the exit fees (also known as departure fees). When you leave, you sell your apartment back to the village for 75% of its resale value, in other words the village gets 25% of the resale. If you don't like the value you can get a valuation done, etc etc From my limited research I understand this kind of arrangement is quite common. The implication for my folks is that they really absolutely have to love living the place, because they lose money on exit unless they wait say 10 years (and even then subject to property market movements and resale demand) So my question is, are there people out there who have been through this or looked at it closely and would be willing to share the benefit of their experience? My main concern is the huge commitment that is involved to the place, you literally have to love it because you can't afford to leave... I can see the potential for my parents to have a very enjoyable time in this place, but I also see many risks. Would anyone like to share their thoughts?