Before you pack up and move out, it is worth understanding what happens to your house when you move into a retirement village. The good news is that nothing happens automatically. Moving into a retirement village does not mean you have to sell your house, and the village does not take ownership of your property.
Quick answer: You have options. You could sell, keep it, or, depending on your circumstances, rent it out. But each choice can affect your finances, Age Pension, tax position, and what you ultimately leave behind for your family.
This guide explains your options and the key things to consider under South Australia’s 2026 retirement village rules.
Key Points at a Glance
- You do not have to sell, but many residents choose to because the sale usually pays for the new unit.
- If you keep the house, Centrelink generally counts it as an asset, and rent counts as income.
- Sale money set aside for your new house can be exempt from the assets test for up to 24 months.
- Your entry contribution decides whether Centrelink treats you as a homeowner.
- South Australian law now caps the wait for your exit money at 12 months plus 30 business days.
Do You Have to Sell Your House to Move Into a Retirement Village?
No. But in practice, people often do. The sale usually covers the entry contribution, which is the upfront amount you pay for the right to live in your unit. Retirement units often cost less than the family house, so selling can also free up money for travel or health costs.
Can You Move In Before Your House Sells?
Yes. Some villages will hold a unit or agree to a later settlement while your house is on the market. Banks also offer bridging loans, though the interest adds up quickly if a sale drags on. Ask the village early what flexibility it offers.
Can You Rent Out Your House If You Move Into a Retirement Village?
Yes, you can, but renting out your house can affect your finances.
- Your Age Pension may be affected.
Once you move out, your house may no longer be treated as your principal residence. Its value may then be included in the Centrelink assets test, which could affect how much Age Pension you receive.
- Rental income counts as income.
The rent you receive from the property is counted as income.
- Capital gains tax may still apply.
The ATO’s absence rule may let you treat the house as your main residence for capital gains tax purposes for up to 6 years while it is rented. Terms & Conditions apply.
- You become a landlord.
From finding and managing tenants to arranging repairs, inspections, insurance, and paperwork, there is more to managing a rental property than collecting rent, unless you pay a property manager.
What If You Leave the House Empty for a While?
Some people want a trial run before letting go. An empty house still costs money in rates, insurance, and upkeep, and many insurers limit cover once a property sits empty for around 60 days. If you plan to return, Centrelink may still treat it as your home for up to 12 months. Once you decide not to return, it generally counts as an asset.
One exception is worth knowing: One exception is worth knowing: If you leave your house because of illness and move into care, such as residential aged care, your house may be exempt for up to 2 years. Moving into an independent retirement village unit usually doesn’t qualify, so check with Services Australia.
How Does Selling Your House Affect Your Age Pension?
While you live in your home:
Your principal property is generally exempt from Centrelink’s assets test.
After you sell:
If you plan to use the sale proceeds to buy or enter another principal home, the amount may remain exempt for up to 24 months, or up to 36 months in some circumstances.
Money left over:
Any money you do not use for your new home may be assessed as a financial asset and subject to deeming rules. This means a large gap between your sale price and retirement village entry contribution can trim your pension.
Are You Still a Homeowner in a Retirement Village?
Your retirement village entry contribution can affect how Centrelink treats you. From 1 July 2026, the extra allowable amount is $267,000.
If you pay more than $267,000:
You are generally treated as a homeowner, and your entry contribution is not counted as an assessable asset.
If you pay $267,000 or less:
You are generally treated as a non-homeowner. Your entry contribution is counted as an asset, but you may have a higher asset limit and could qualify for Rent Assistance on eligible ongoing fees.
Do You Own Your Unit in a Retirement Village?
Usually not in the way you owned your house. Most units are held under a licence or loan-licence, a lease, or less often strata title. Your contract explains the type of arrangement you have and your right to live in the village home.
In South Australia, these contracts fall under the Retirement Villages Act 2016, and reforms that took effect in early 2026 have strengthened resident protections. Disclosure documents must now show estimated exit entitlements and fees after 2, 5 and 10 years. The longest wait for your exit money has also dropped from 18 months to 12 months plus 30 business days, unless the South Australian Civil and Administrative Tribunal (SACAT) approves an extension.
What Happens to Your Money When You Leave or Pass Away?
When you leave, or if you pass away while living in the village, the operator pays your exit entitlement to you or your estate, less any departure fees in your contract. If you kept your original home, it passes through your will as normal.
This is a good time to update your will, enduring power of attorney and advance care directive, and to talk openly with family.
A Simple Way to Decide
Before choosing, ask yourself four honest questions:
1. Do I need the sale money to pay the entry contribution?
2. How much Age Pension could I lose if I keep the house?
3. Am I ready to be a landlord, or is someone willing to help?
4. What do I want to leave my family, and in what form?
Your answers can help you work out the best option for your home when moving into retirement village living. A financial adviser, Services Australia’s free Financial Information Service and a solicitor who knows village contracts can fill in the rest.
Planning a Move to Retirement Living in Gawler?
If you are weighing up retirement living north of Adelaide, Oasis Garden Village in Gawler East is well worth a visit. The fortnightly living fee is set at 84% of the Age Pension plus Rent Assistance and utilities allowance, and it covers chef-prepared meals, maintenance, council rates, building insurance, electricity and gas.
When you leave, your refund is 75% to 90% of the next resident’s loan, depending on how long you stayed, less refurbishment and marketing costs. The team will walk you through every figure. The village sits next to Gawler Hospital, welcomes cats and dogs, and has a 24-hour emergency call.
Still unsure what happens to your house when you move into a retirement village? Contact Oasis Garden Village to book a visit or talk it through with our friendly team.