This third article looks at the financial considerations of moving into a Retirement Village — an important part of making an informed decision.

Your Investment: A Lifestyle Choice

Village living is about lifestyle rather than traditional property ownership. Most agreements are on a Licence to Occupy, meaning you do not own the property but have the right to occupy that home for life. Weekly fees cover villages services, maintenance, security, rates, insurance and access to village facilities.



Entry Payment & Deferred Management Fee (DMF)

Your capital sum includes a DMF, which is deducted when you leave.  This is your payment for refurbishment cost prior to the resale, your right to use all village facilities while you live there and your contribution to long-term maintenance on all community facilities.

Exit Payment

This is the amount you receive once your unit is resold, minus the DMF. A full refurbishment is often required before resale, which may delay payment.  The home, in most cases, needs to be sold before the final payment can be made. Village Managers can discuss options such as interest free loans, assured repayment dates, or bridging finance when moving into care.

Sales Process Control

Most operators manage the resale process on your behalf. This can be a relief — removing stress from you and your family — but it also means you have limited influence over marketing or timing. You have little or no say in the marketing or sales process.

In Summary

A Retirement Village suits those who value security, community and convenience over property ownership. When considering the retirement village option, visit several villages. Always compare contracts, read the Disclosure Statement and Licence to Occupy, and seek independent legal advice before signing.