Financial Considerations
When considering a retirement village, there are a number of price options to choose from - ranging from affordable to premium. The price of an ORA reflects the average freehold home value in the area where the village is built.
Equity
Those who choose to live in a retirement village are making an investment in their quality of life and peace of mind and the release of equity from the sale of their family home is a valuable boost to retirement savings.
Weekly Fees
The regular ‘outgoings’ or weekly fee covers certain running costs of the village. These costs may include the upkeep of the village facilities, maintenance of the village grounds and gardens, staff wages and salaries, statutory charges such as council and water rates, security costs, ACC and public liability insurance, and common area insurance for the entire village.
It's a good idea to ensure that you are provided with complete details of the charges and the benefits they cover for the village of your choice.
The basis of calculating the ‘outgoings’ or weekly fee varies from village to village and is fully explained in your ORA. The fee is generally reviewed annually.
The economy of sharing costs and the ability to budget fixed outgoings for the year takes much of the uncertainty out of financial planning.
“If I tried to live outside the village, it would cost me four times more. ”
