Overall Costs and Ownership
What does retirement living cost?
Moving in to one of our retirement communities is an important decision, and we want you to have a full understanding of both the costs and the benefits involved, right from the outset.
Of course, the cost of retirement living depends on a lot of things: the type of home you want to live in, its location, the facilities and services available, and more. We've minimised up-front costs to help you get the most out of village life from the moment you arrive.
There are three key financial terms to understand:*
- The initial purchase price, which is called an Occupation Right Agreement (ORA)
- The Fixed Weekly Fee
- The Deferred Management Fee (DMF)
Occupation Right Agreement
You will enter into an Occupation Right Agreement (ORA) for your home, at the market value, at the time of purchase. The ORA gives you the right to occupy the home for your lifetime (health and other terms permitting), or until you choose to leave. Occupation rights will be secured by the statutory supervisor's first-ranking mortgage over the village land.
Fixed Weekly Fee
We have a fixed weekly fee that covers rates, building insurance, gardening, exterior maintenance, a 24/7 onsite emergency response service, staff and use of all the village communal facilities and amenities. Your weekly fee will be fixed for the entire period of your occupancy, giving you certainty over your future outgoings. We make no profit from this weekly fee.
Deferred Management Fee
When your home is sold, we retain a Deferred Management Fee (DMF) of 30% of the original purchase price. The DMF contributes to the capital costs of the village and facilities, and the costs of operating the Arena Living business. It also covers marketing, refurbishment and selling of your home, ready for the incoming resident. There are no additional fees for you to pay, unless you have caused damage beyond fair wear and tear. The DMF is accrued over three years. If you leave within this time, your fee will be reduced accordingly. We will also absorb any capital loss, so you have absolute certainty over how much you will receive when you leave.
Come and see us to discuss your options
We recommend you discuss your options with us face-to-face so you can ask questions and feel confident that you are making the right decision. You may wish to discuss your options with close family members, and you must also seek independent legal advice. Our formal obligations and all costs are clearly set out in your ORA.
The purchase of your ORA is always conditional on your solicitor approving the agreement and all associated documentation. We can even make the purchase of your agreement conditional upon you selling your existing home.
For more information, you can download a brochure or chat to one of our sales team.
*The above applies to all Arena Living Villages, except for Mt Eden Gardens Village. For information on Mt Eden Gardens Village please click here or call George Smith on (09) 630-6303.