Retirement or lifestyle villages in New Zealand are evolving, offering new financial models that provide residents with a share of capital gains. Traditionally, most villages operated under a license-to-occupy model, where residents paid an upfront fee but did not benefit from property appreciation. However, a growing number of villages are now offering capital gain-sharing options, making retirement living more financially attractive.
One of the key advantages of this model is greater financial security. As property values rise, residents—or their families—can benefit from a portion of the capital gain when they exit the village. This makes the investment more appealing compared to traditional setups where the operator retains all appreciation.
Additionally, these evolving villages still provide modern amenities, security, and community living, ensuring retirees enjoy a high-quality lifestyle. Residents can downsize without sacrificing financial growth potential.
This shift reflects the changing expectations of retirees, who seek both comfort and financial fairness. While not all villages offer capital gain-sharing, the trend is growing as demand increases for more transparent and flexible retirement options.
As retirement living continues to change, these new financial models offer a compelling choice for those looking to enjoy their later years while preserving their financial legacy.
Get in touch to learn more about Tauranga villages that offer full or a part share of capital gain.