What Does Retirement Living Cost?
Because buying a license for a home in one of our retirement communities is an important decision, we want you to understand fully both the costs and benefits involved, right from the outset.
All costs and our formal obligations are clearly set out in your Occupation Right Agreement. We recommend you discuss your options with us face-to-face so you will feel confident that you are making the right decision. While you may wish to discuss your options with close family members, you must also seek independent legal advice.
What does retirement living cost?
The cost of retirement living depends on a lot of things. They include 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 step through the door and into your new home.
There are three key financial terms that will apply when you buy:
- The Entry Payment you pay for the Right to Occupy the home
- Fixed Weekly Fee
- Deferred Management Fee (DMF)
Entry Into 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.
We have a fixed weekly fee which 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.
Deferred Management Fee
When your home is sold, we retain a Deferred Management Fee (DMF) of 30% of the original purchase price. There are no additional fees for you to pay on exit, unless you have caused damage beyond fair wear and tear. The DMF is accrued over 3 years. If you leave within this time, your DMF will be reduced accordingly. This contributes to the capital costs of the village and facilities and the costs of operating the Arena Living business. The DMF also covers marketing costs and refurbishment of your home, ready for the incoming resident.
*** The above applies to all the Arena Living Villages, except for the recently purchased Mt Eden Gardens Village. For information on Mt Eden Gardens Village please call George Smith on (09) 630-6303