You’ll likely have lots of questions, not just about how much it will cost to move in but how much it will cost on an ongoing basis, and when it comes time to leave.
We understand you need certainty about your financial future, and that you might feel concerned about affordability and hidden costs. Let’s walk through each step of the process so you know exactly what to expect.
In RetireAustralia’s three freehold (strata title) villages in Sydney, you own your home plus a portion of the community facilities and pay stamp duty and ongoing strata fees.
To increase financial certainty, we’ve made our contracts as clear and transparent as possible. We specify, upfront, which costs you’ll need to pay, and what they cover. Here’s a quick breakdown of the fees you’ll need to pay over the duration of your stay in one of our strata title villages in Sydney.
* Please note, the costs are a little different for our licence and leasehold villages in South Australia and Queensland. It is also a little different for our community The Verge at Burleigh on the Gold Coast.
Your entry payment gives you the right to reside in your new home. The good news is that this is typically less than the local median housing price, making your move into a village more affordable and allowing you to maintain a healthy cash flow after the sale of your home.
These monthly fees keep the village running and cover services that make life easier and more enjoyable — things like maintaining shared spaces, security, activities, and community amenities. By law, all fees are charged at cost — we make no profit. They only increase in line with actual costs, and village finances are independently audited each year.
Paid quarterly to the Owners Corporation (NSW) these cover the upkeep of common property, building insurance, and shared facilities.
The management fee explained
When you leave, you’ll pay a management fee which is capped at 37.5% of the resale price in our strata title villages in New South Wales and is accrued during your first 5 years in the village. This fee gives you access to your preferred lifestyle and contributes to quality social and recreational amenities. This is our form of income and can contribute to village improvements and support staff.
Our strata management fee explained
When you leave the village, you’re entitled to keep any capital gains your unit has accrued. So, if you purchase a unit for $500,000 and sell it for $650,000, there is a capital gain entitlement of $150,000. You will have to share up to 37.5% of the capital gains received with the operator as part of the management fee but you keep the rest. What’s more, you won’t need to pay capital gains tax on it either, given your home has been your main residence.
* Please note, the management structure is a little different for our licence and leasehold villages.
Our residents tell us that choosing to move into a retirement village is about far more than bricks and mortar. In reality, it’s an investment in you. You’ll be moving into a friendly community filled with people at the same stage of life, and you’ll have access to a range of amenities.
These vary depending on the village you choose but can include things like:
You can also get involved in a range of interest groups, social activities and events from happy hour to mini-golf and more – it’s really up to you and the community.
What’s more, when you don’t need to worry about maintaining your house and garden, you’ll actually have time to explore new interests!
These intangible benefits are an important consideration, and should be weighed up alongside the financials. Moving into a retirement village is about so much more than the property. Residents tell us that the lifestyle, health and wellbeing benefits enhance their quality of life immeasurably.
If your needs change, you can rest easy knowing you can access care and support if you need it. In RetireAustralia villages, you have a range of care and support services to choose from, whether that means ongoing daily support in a serviced apartment (available in many of our villages in New South Wales and South Australia), or flexible care and support delivered in your home by our Support at home team. Support is tailored to your individual needs and you can pay privately for services or use government funding.
A true cost of living comparison can only be obtained by spending time with a sales consultant in a village, talking through your circumstances and needs, and understanding the fees and inclusions in your chosen village. You also need to do your own homework and make sure you have an accurate picture of your current living expenses to make the comparison valid.
In a general sense, retirement villages offer great cost of living value but trying to put a specific dollar figure to this comparison can easily become misleading. Your own cost of living and those applicable to villages can vary substantially, so it’s best to check with your village of choice directly.
On top of the hard costs listed above which village fees cover, the costs associated with living in a retirement village also provide residents with a sense of community and belonging, support from friends and staff, and numerous opportunities to lead a happy, active and healthy life.
Placing a value on these intangible benefits is very personal to each individual. To get more of an insight into what it is like to live in one of our retirement villages, take a look at our retirement living stories and resources.
