Retirement community costs and fees explained
09 August, 2021
Looking into retirement villages, one of the biggest concerns can be the costs and fees.
Whilst communities operating under the Retirement Villages Act 1999 offer more security than other options available, people often find the financial side of things initially more confusing. After reading this blog, you will know what are the different types of costs and benefits to retirement villages.
What are the types of fees associated with retirement villages?
All costs and fees are outlined at the beginning of the buying process and are fixed in your contract.
As a prospective buyer, you can request a Prospective Costs Document (PCD) and the operator is legally required to send you it within 7 days of your request. This ensures you are fully aware of any financial risk before entering into a contract.
Retirement community fees can include:
You will normally pay a deposit before moving in. Depending on the operator, this deposit can be paid separately or is a part of the purchase price.
Purchasing price and entry payment
Based on your chosen retirement village and the type of tenure, you will be required to pay either a purchase price or an entry payment.
- For leaseholds or licence tenures, the entry payment is normally the property’s current market value.
- To hold the legal title to your property under strata, community, or company title tenures, you will pay a purchase price.
Normally, leasehold tenures have no stamp duty. For strata, community, or company title tenures, you will need to pay stamp duty, which is a government tax for property transfers. It is important to remember stamp duty does depend on the state and tenure of your property purchase.
General Services Charges (GSC)
GSC fees are similar to Body Corporate fees, as you are paying for the upkeep of your property, the community facilities, and more. Our staff, including nurses, chefs, concierge, receptionists, and an administration team are also covered within the GSC. Other costs, such as transport, can also be included.
It is important to note that the GSC can’t be used to make a profit. Services and costs in the GSC are provided at cost by law.
This fee is something unique to retirement communities. Whilst the exit fee can be part of the purchase price, this payment is generally deferred until the end of your occupancy. It is often viewed as a “use now, pay later” tool. You will be made aware of the exact fee when you enter the retirement village.
This fee assists in covering the cost of general community assets like the restaurant, library, transport vehicles, cinemas, and more. Given no profit can be derived from the GSC, this is where the operator makes their money after the aforementioned expenses are accounted for.
How fees work at Odyssey
At Odyssey, we offer a version of leasehold tenure. You have tenure for life and can register this interest over the entire community. You acquire your own 1 or 2-bedroom apartment, which you can sell at any time. We have five financial models, including an option with no exit fees. We believe flexibility is paramount as one size doesn’t fit all. Our friendly staff will work closely with you to determine the best fit for your personal situation.
Live your best life the way you want, with care built-in
We have 5-star restaurant dining at affordable prices for you to dine in daily. Your family and friends are welcome to dine with you in your community, at any time. You can also buy groceries and cook your own food in your high-quality, architecturally designed kitchen. It’s your home, so we welcome you to live how you wish!
Odyssey’s Care Team are on-site 24/7 with each shift headed up by a Registered Nurse to ensure your safety and possible care needs are always met. From no care to high care, we have you covered.
Care costs will depend on whether you are eligible for a government package or whether you choose to pay privately. Our team will assist you to choose the best option for you. The team at Odyssey has worked hard to ensure our care is provided at COST to help you stay as well as possible as cost-effectively as possible.
Why choose a Lifestyle Care Community?
Retirement villages are great for those wanting to start a new era of life. You can discover many lifestyle attributes on campus where you can easily socialise and have fun. Odyssey Lifestyle Care Communities are all of this and more!
We have all the benefits of a retirement village at your disposal, plus we have 24/7 care on-site for your care and safety. We welcome people of any care level and will work with you to maintain your independence without compromising on the support you may need. The best in lifestyle and care combined.
Find out more here
With the Retirement Villages Act 1999, you can rest safe knowing your property investment is secure with little financial risk. If you are interested in learning more about the retirement villages contract, we have an educational video with Danielle Lim, the Principal of DSL Law you can watch.
You can find out more about Odyssey’s costs and financial information via our Frequently Asked Questions. If you require more specific and tailored information, we welcome you to visit our Robina Community for a one-on-one personal tour. You can arrange a suitable time to visit us by clicking here or calling 07 5551 6720.