Is There An Upside To Exit Fees?

If you’re crunching the numbers on retirement village contracts and scratching your head over exit fees, you’re definitely not alone. But rather than feeling mystified, we’d like to clarify these fees and explain how they can make a huge difference to your life during your stay at an Odyssey Lifestyle Care Community.

So, what is an exit fee?

Simply put, exit fees or Deferred Management Fees (DMF) are a ‘use now, pay later’ financing option. Rather than paying every cost up front, you can defer paying your management fees right until the end of your stay. So, when it comes to paying for facilities and services—like the restaurant, transport vehicles, cinemas and more—you can enjoy them now and pay later.

Are exit fees an industry standard?

Exit fees are unique to retirement communities and are the most commonly used financing models in Australia. These fees exist for two reasons.

1. Firstly, we are required by the Queensland Government to run our community at cost for the duration of your stay. In our case, this means we don’t profit from your care (unique to Odyssey), any running costs, electricity, phone, furnishings or any other incidentals.
2. Secondly, we keep the purchase price of our homes as low as possible so you can take full advantage of your equity while you live here. In turn, exit fees are our form of compensation so we can continue to run as a premier aged care alternative in the future.

To learn a little more about how you are protected under the Retirement Villages Act 1999, Danielle Lim from DSL Law explains how exit fees and contracts work.

Who benefits from exit fees?

As mentioned above, exit fees serve two parties: you, the resident and us, the business.

You: By deferring your exit fee, you can free up the equity you’ve worked hard for and invest in a beautiful retirement lifestyle at an affordable price. And, in our view, the returns on a considered investment in your happiness and care as you age can be priceless. (If you want to know how, just hear what our Robina residents, Peter and Jean have to say.)

Us: Exit fees are where we make our profit so we can continue to run a healthy business and offer a premier lifestyle care community. After recouping managing costs and community facilities costs (restaurant, library, etc), we reinvest a significant portion of our profit into capital improvements, building community infrastructure, remunerating our professional team and making Odyssey a singularly wonderful place to live.

Where does the exit fee fit in the bigger picture?

Well, you tell us! At Odyssey, we offer five different financing options—from paying the exit fee as part of the purchase price or deferring payment until the end of your occupancy. If you choose to defer the exit fee, you will only ever pay it once. And, you will be made aware of the exact fee before you enter the community.

To shed some light on your options, Odyssey founder and CEO, Phil Usher explains the many ways in which you can pay for private aged care living.

Which financing option is right for me?

Now, this part is entirely up to you. We offer a range of financing options because we know firsthand that every individual has different priorities, needs and expectations for their future. We always recommend seeking out independent financial advice to aid your decision.

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When you’re ready to talk to our team about making a home at Odyssey, we’ll be here to answer your questions and show you around our beautiful lifestyle care community.

To get in touch, click here.