Rental is not a dirty word for innovative living

There are now more choices to suit your style of retirement living reports RHIANNON HOYLE.

RENTAL-STYLE residential villages are set to offer the nation's seniors a new option in retirement living.

The innovative model - being driven by Valad Property Group in a joint venture with Harvest Developments, of the United States, and Queensland developer the Petrac Group - is predicted to result in at least an initial 10 rental villages soon set up across Australia.

While the rental market for retirees is firmly established in the U.S., it is a concept which is relatively new to the Australian market.

VaLad head of capital services Alastair Wright said the rental model provided retirees with a high quality, cost effective and less capital intensive accommodation option than currently available.

While sites have been chosen for the first two villages, in New South Wales and Queensland, the consortium is looking into possible South Australian options for the first of what could be several local projects.

"We have looked at a few sites there and absolutely have hopes to soon secure one for a village," Mr Wright said.

Mr Wright said families and communities were now confronting growing housing and health care demands, linked to the ageing populations.

He said their push behind rental-style accommodation would hopefully provide retirees with increased housing options - with minimal bond being requested and month-to-month leases offered.

The rental accommodation concept was pioneered in the U.S. in the early 70s by Holiday Retirement Corporation, the predecessor to Harvest Developments.

Retirement Village Association chief executive officer Kate Hamond described the proposed developments as "a very good initiative".

"It's definitely not something that is common in retirement villages in Australia," she said. "And you do find there are a lot of retirees why may not be asset rich but have a substantial income.

"I think that anything that broadens the scope and gives people options has to be a good thing."