Five years ago, retired high-school principal Joanne Bascom moved into the Village by the Arboretum in Guelph, Ont. A 112-acre development on land owned by the University of Guelph and adjacent to the university’s 500-acre nature centre, the village has an on-site medical centre and 488 townhouses and detached bungalows.
It offers a mix of sports and social activities and a group of people with whom to enjoy them.

Bascom, 61, is part of a trend among the 50-plus crowd to retire to an “adult lifestyle community,” a number of which have sprung up across the country in the past 15 years to serve active older people. Bascom is delighted with her decision. She now fills her days swimming and playing tennis and bridge, and spends summers at her cottage. Yet, despite the obvious advantages to ALCs, there are financial implications that you may want to discuss with older clients considering such a move.

ALCs are typically about an hour’s drive from a major centre. They often involve land-lease arrangements: residents own their homes — often bungalows and townhouses — but not the land, which is subject to rental and maintenance fees. Some projects include condominium apartment buildings. Most feature community centres, at which activities such as crafts and card games take place. Many also offer swimming pools and outdoor activities such as boating, golf, tennis and skiing or nature trails. Some, however, restrict how long guests can stay, what — if any — pets are allowed and the ability to run a business from home.

With ALCs, buyers purchase a lifestyle, not just a home.

Bascom, for example, owns a bungalow with a woman friend; they had it custom-designed with two master bedrooms, each with an ensuite bathroom.
Before their move, the two friends didn’t know anyone at the village. Now, Bascom is president of the residents’ association and is active socially and recreationally.

“I’ve broadened my social contacts,” she says. “It’s a level social situation because everyone here is from someplace else.
People come from diverse backgrounds. I never knew an airline pilot — and now I play tennis with a retired pilot.”

ALCs can also be financially attractive.
According to recent resales, a townhouse at Village by the Arboretum costs about $230,000 and a bungalow $450,000. The next stage of the project is four buildings housing 146 condominium apartments, priced between $250,000 and $380,000.
The first move-ins are scheduled for September.

“If you sell your home in Toronto or Vancouver for $500,000 or more, a move to a lifestyle community for $300,000 frees up a considerable sum of money,” says Michael Wright, president of the Mature Market Resource Centre, a Mississauga, Ont.-based consulting firm that specializes in the 50-plus market. “But if you’re living in a smaller community, it may be just a lateral move.”

The Village by the Arboretum —where the average age is now between 65 and 70 years — is trying to meet the needs of residents as they age. If, in the future, Bascom can’t manage the stairs to her loft bedroom, she can move to a townhouse, which is all on one floor.

As well, administrator Judy Phillips says, the village plans to have a residents’ bus to provide transportation within the project and to parts of Guelph. It also has plans for an assisted-living component. “This will be in a hotel-like setting, probably on a rental basis,” she says. “Residents can purchase meal plans, laundry and housekeeping services, and nursing care. But it won’t include 24-hour care; for those who require it, there are several nursing homes nearby.”

At the moment, most ALCs are not catering to the later stages of retirement because their target market is the active, affluent older person. “You won’t find many 60-year-olds wanting to live alongside people in their 90s,” says Barbara Carter, president of Papillon Consulting Services, a
Toronto-based seniors’ housing consultancy. “When you’re 60, you don’t even want to think of that stage of life.”

This continuum of care, while important, is not available at most ALCs, and this is something clients should consider before they move. Without facilities for the frail elderly, a lifestyle community probably won’t be a retiree’s last home, and moving becomes more difficult as people age.

There are other things clients should consider.

@page_break@> Transportation. “How far is the community from major treatment centres?” Wright asks.
If your client or his or her spouse develops a medical condition that requires specialized treatment, will long drives into the city be required?

And what will happen if your client can no longer drive? Visits to medical professionals may be just part of the transportation problem. Is there transportation within the community? Carter cites the example of Lagoon City, an ALC on Lake Simcoe in Ontario that is spread over 1,600 acres.
“Without a car, it can be a hike to get around,” she says. “And it breaks people’s hearts to leave because this community is outstanding.”

> Personalities. ALCs are geared toward extroverts, Wright notes: “You’re paying a fee for a community centre. If you don’t swim, play tennis or socialize, you still pay the fee.”

But, Carter says, people may say they don’t want to play cards or join in other activities.
“When they are available, they often find themselves getting involved and enjoying it,”
she says. “They may not realize — especially if they’ve lost a spouse — that they’ve been missing a social life. All of a sudden, you see Mrs. Jones turning into a social butterfly.”

> Location. John Crawford, a gerontologist and vice president of education at the Canadian Academy of Senior Advisors Inc.
in Vancouver, says city dwellers should seriously consider how important the city is to them before moving out of it. “Many older people like to be downtown near theatres and restaurants, and near their doctors, accountants and financial advisors,” he says.

> Money. Carien Jutting, president of the Canadian Association of Pre-Retirement Planners and president of Fiscal Wellness in Stratford, Ont., notes financial considerations. “If a spouse dies and there’s only one source of pension income, will your client be able to afford to stay there?” she asks. “Don’t underestimate fees and land-rent costs.

“And are there funds available if the client has to move suddenly? Remember that real estate is an illiquid investment and this is specialized real estate appealing only to certain types of buyers.”

Encourage your client to check out a few communities, advises Floyd Murphy, a financial planner and president of The Nakamum Group in Vancouver. “Knock on doors and find out what kind of people are there,” he says. “Ask if it’s possible to stay for a week.” IE