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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.
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 villages:
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.
Service fees are set at a cost-recovery rate only. These cover our operating costs as well as:
Retirement village operators don’t profit from this fee, and you can 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.
When it comes time to leave the village, you’ll receive an exit entitlement, which is the purchase price minus the DMF. This fee is calculated on a sliding scale for your first three years in the village, starting at 10% and capped at 35% of the entry payment at the three year mark.
By charging this on exit – rather than incorporating it into the purchase price – you’ll not only free up your cashflow but find that your move into the village is much more affordable.
It’s important to note that the DMF is the only fee that allows RetireAustralia to reinvest back into your village, through capital replacement works, maintenance of communal facilities, and village upgrades. It also covers the refurbishment, sales and marketing costs of homes and the remainder is profit. This helps maintain value in your home and community, which is important when it comes time to sell.
What’s more, you’ll know the exact DMF you’ll pay before you move in, making your future budgeting clear and predictable.
Our residents tell us that choosing to move into a retirement village is about far more than bricks and mortar. In reality, it’s a lifestyle investment. 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. You’ll enjoy the facilities and low maintenance living and have peace of mind that there is a safety net of care and support should you ever need it.
Amenities 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!
It’s also reassuring to know that care and support options are available should you ever need them. From extra support in your own home through to a suite of services available in a serviced apartment or a care apartment, or a stay in the homelike care environment of the Care Hub.
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.
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.
