How the financial model works
Retirement village contracts set out all costs clearly - there are no hidden surprises. By law, prospective residents must receive independent legal advice before signing a contract to live in a village.
Usually 20-30% of the entry price, capped in the contract.
Charged after you leave.
Helps cover refurbishment and development and maintenance of shared village facilities.
DMFs are clear and capped. No hidden surprises.
Deferred Management Fee (DMF)
Weekly fees
These contribute to the day-to-day running of the village, such as staff, maintenance, rates and insurance.
Some residents prefer a lower weekly fee in exchange for managing their own chattels or minor maintenance.
Exit payments
On average, repayments are made within five and a half months of leaving.
Many operators pay interest if settlements take longer.
Operators don’t receive income until a new resident moves in - meaning they’re incentivised to settle quickly.
Transparency
Every detail - from fees to timeframes - is clearly written into your contract and reviewed with your lawyer.
