The Costs Explained
The three main costs associated with leasing/buying into a retirement village community are summarised below.
1. Home Payment
This entry payment is the cost of your home, being your retirement village unit or apartment. It is often referred to as an ingoing contribution or purchase payment and as with all residential real estate, the price varies depending on the price, style, age and condition of the property. It is usually less than the purchase price of a similar residential property in the same suburb.
2. Monthly Service Fees
These monthly payments contribute to the running costs of the village community. Think of them as you would body corporate fees when purchasing an apartment or as the maintenance costs you incur in your own home.
They cover expenses such as:
- Building insurance
- Front gardens
- General village maintenance
- Landscaping
- Staff
- Cleaning and upkeep of the village community and other common areas
There is no profit to Centennial Living in the monthly fees.
Another Benefit is No Stamp Duty!
There is no stamp duty or transfer fee payable when purchasing a unit or apartment in one of our retirement villages. This can be a considerable saving.
3. Management Fee: Deferred or Paid Upfront
The fee is calculated as a percentage of the entry payment and will be based on the number of years a resident has lived in a village. The Management Fee is a one time fee that residents pay when they enter or exit a village. The fee is calculated as a percentage of the entry payment and is based on the number of years a resident has lived in the village. We recommend that you discuss the financial model with a legal practitioner and a financial advisor so that you can discuss them in the context of your own personal financial situation.
We always recommend you discuss the financial model with a Legal Practitioner and a Financial Adviser so that you can consider them in the context of your own personal financial situation.