If you’re thinking of moving into a retirement village, there are lots of things to weigh up and money is one of the biggest considerations.
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.
Payments – how much, when, and will they change over time?*
The Verge at Burleigh G.C., a brand new retirement village under construction on the Gold Coast, will operate under a leasehold agreement where residents purchase a long-term lease (usually 99 years) to live in their home. This is the most common types of agreement in RetireAustralia villages.
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 would need to pay for the duration of your stay in our brand new leasehold community on the Gold Coast.
Entry payment
Your entry payment gives you the right to reside in your new home. The good news is that this is typically 70-80% of 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.
You will not have to pay stamp duty on your apartment, leaving you with extra money in your pocket to enjoy while you’re settling in.
Monthly service fees
Village fees include property expenses and village management and administration costs.
Property costs include:
- Council and water rates
- Building insurance
- Maintenance and repair of capital items in the village
- Building and garden maintenance
- Cleaning and maintenance of village facilities
- Community staff
- Community bus
Village management and administration costs include:
- Village management
- 24-hour emergency call provision and monitoring
- Facilities and activities
- Event coordination
By law, this fee is charged on a cost-recovery basis only and retirement village operators cannot profit from it. You can also rest assured that it can’t be increased greater than the Consumer Price Index without the approval of village residents. For further peace of mind, these fees are audited by an independent party each year.
Deferred Management Fee (DMF) *
What is the DMF?
The deferred management fee, or sometimes referred to as DMF, exit fee or departure fee, is payable when you leave the village and allows us to keep our entry prices as competitive as possible, leaving you with more cash in your pocket to enjoy life in the village after you move in.
It’s important to note that the DMF is the only charge that allows RetireAustralia to reinvest back into your village, through capital replacement works, maintenance of communal facilities, and village upgrades. This helps maintain value in your home and community, which is important when it comes time to sell.
How is the DMF calculated?
When it comes time to leave The Verge at Burleigh G.C., you’ll receive an exit entitlement, which is the purchase price minus the DMF. This fee is capped at 25% of your entry price and is stepped during your first five years in the village. There are no further increases after this period, no matter how long you stay.
From the day you move in, you’ll be able to calculate how much you will receive when you exit the village – making your future budgeting clear and predictable.
DMF example
#If you exit the village during the first 6 months (that is, during the Settling-In Period), you will not pay an exit fee.
Note: If you occupy your apartment for less than a whole year, your exit fee will be calculated on a daily basis.
What do I get for my money?
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.
At The Verge at Burleigh G.C., this includes things like:
- Café
- BBQ areas
- Indoor and outdoor meeting places
- Gardens
- Residents’ bar
- Library
- Community Wellness hub with gym equipment and fitness classes
- Treatment rooms for visiting health professionals
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.
What if I change my mind?
We want you to feel secure and confident in your decision, so we have extended the statutory 14-day cooling off period for buying an apartment in a retirement village to 21 days. We’II return your deposit in full if you change your mind during the 21-day cooling off period.
Further to this, if you decide The Verge at Burleigh G.C. isn’t right for you within 6 months of moving in, we’ll repay your entry price (less any fees and costs*) within 30 days so you can focus on your next move.
*Additional fees and costs when you buy and when you leave may include legal, registration or other applicable fees as well as reinstatement costs.
What if my care needs change?
If your needs change, you can rest easy knowing you can access care and support if you need it. At The Verge, you will be able to receive flexible care and support in your home from RetireAustralia’s Home Care team or a provider of your choice.
Our Home Care service makes life a little easier and gives you peace of mind that, should your needs change, you can continue to stay safely in your own home for longer. Our care team can help with household chores, meal preparation, showering, dressing, and medication support, to name a few.
Care is tailored to your individual needs and funded privately or through access to an approved government funded Home Care Package (HCP). We can even help you navigate HCP approval through My Aged Care, the government assistance platform.
How can I compare the cost of living in a retirement village with other options?
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 Good News Hub. Or read up on global research about the health benefits of retirement living.
If you’d like peace of mind and clarity on the cost of your retirement home in years to come, please take a closer look at The Verge at Burleigh G.C.
