The Hidden Cost of “Buy-In” Communities: Why Renting at Avery Heights Makes Sense

When you begin researching senior living options in Connecticut, you will quickly encounter two very different financial models: the “Buy-In” (Entrance Fee) model and the Rental model.

For many, the idea of a “buy-in” sounds like a solid investment—a way to secure future care. However, once senior living entrance fees are explained in detail, many savvy retirees realize that the upfront cost often carries hidden burdens that can impact their long-term financial liquidity.

At Avery Heights, we’ve chosen a different path. As a rental-only community, we prioritize your financial freedom without compromising on the quality of care. Here is everything you need to know about the hidden costs of buy-in fees and why renting is often the smarter financial move.

What is a Senior Living Entrance Fee?

An entrance fee (or “buy-in”) is a large upfront payment required by many Continuing Care Retirement Communities (CCRCs), also known as Life Plan Communities. These fees can range from $100,000 to over $1,000,000, depending on the size of the residence and the level of future care promised.

While these communities often market these fees as a “pre-payment” for healthcare, the reality is more complex.

The Hidden Costs of the “Buy-In” Model

1. The Loss of Liquid Assets

The most significant “hidden cost” is the loss of liquidity. When you hand over a six-figure sum to a community, that money is no longer working for you. In a rental model, that same capital could remain in your investment portfolio, generating interest, dividends, or capital gains that you control.

2. The “Refund” Illusion

Many buy-in communities offer “90% refundable” contracts. While this sounds like a safety net for your estate, it often comes with a catch. Frequently, the refund is only issued after your unit has been re-occupied by a new resident. Furthermore, that refund does not account for inflation; $200,000 returned ten years from now will have significantly less purchasing power than it does today.

3. Complexity and “Sunk Cost”

Once you have paid a massive entrance fee, you may feel “locked in.” If your family situation changes or you decide you’d prefer a different location, the process of exiting a buy-in contract can be legally and financially draining.

The Avery Heights Advantage: The Power of the Rental Model

At Avery Heights, we believe your hard-earned assets should belong to you. We offer a full continuum of care—including Independent Living, Assisted Living, and Memory Care—all without an entrance fee.

Why Renting Makes Sense:

• Financial Flexibility: By choosing our independent apartments or cottages, you keep your capital. You can use your savings to travel, support your grandchildren’s education, or simply enjoy the peace of mind that comes with having liquid funds.

• Priority Access to Care: Some people fear that without a buy-in, they won’t have a spot in higher levels of care. At Avery Heights, our residents receive priority access to our full continuum, including Skilled Nursing and Rehab, should their needs ever change.

• Simplified Monthly Living: Instead of complex contracts, you sign a straightforward lease. Your monthly fee covers maintenance, dining, security, and our signature “Zest” wellness programming.

Comparison: Rental vs. Buy-In

Is Renting Right for You?

Choosing a senior living community is as much a financial decision as it is a lifestyle one. If you value independence, dignity, and the ability to control your own wealth, the rental model at Avery Heights is designed for you.

Our not-for-profit mission ensures that our focus remains on the well-being of our residents, not the bottom line of a corporate entity.

Ready to see the difference for yourself? Don’t let a “buy-in” fee limit your future. Experience the vibrant, flexible lifestyle waiting for you in Hartford.

👉 Contact us today to schedule a tour and receive a personalized cost comparison.