What is a Buy-In at a CCRC?

In an earlier article, we learned the definition of a CCRC, as well as some of its benefits and possible detriments. One of those detriments we saw was the steep financial cost of living in a Continuing Care Retirement Community. For review, you can expect to pay anywhere from $20,000 to $500,000 and up just in entrance fees alone, dependent upon whether or not that cost involves you purchasing your unit.

But there are other fees to be mindful of as well, and we’ll take a look at it now—the Buy-In Fee. 

While it may seem confusing at first, the buy-in fee is simply that cost that you pay to buy your unit. It is important to note that this isn’t even an option in some communities, but it is required at others. It is more common in the case of the newer CCRC models, which operate in a similar fashion to condos, where you are actually purchasing your unit.

In a lot of cases where paying for a CCRC involves a buy-in fee, this means you would actually own your accommodations, but you would be required to pay for things like health care and other services separately.

What you can be expected to pay will vary according to a number of various things, like the location of the community and type (i.e. budget, luxury) of community as well as the size of the residential unit. Either way, you can expect the cost of the unit to be comparable to that of any non-senior living facilities in the area.

There are a lot of other costs and fees to consider when it comes to thinking of a Continuing Care Retirement Community, and if you are thinking about it for yourself or your loved one, you may want to consider speaking to a financial professional or lawyer to discuss any questions or concerns you might have before making your decision.