{"id":970,"date":"2022-09-06T05:52:39","date_gmt":"2022-09-06T05:52:39","guid":{"rendered":"https:\/\/villages.com.au\/?p=970"},"modified":"2022-12-01T22:35:51","modified_gmt":"2022-12-01T22:35:51","slug":"explained-the-costs-of-retirement-villages","status":"publish","type":"post","link":"https:\/\/blog.villages.com.au\/money\/explained-the-costs-of-retirement-villages\/","title":{"rendered":"Explained: the costs of retirement villages"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"970\" class=\"elementor elementor-970\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-799cca9 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"799cca9\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-993c4f5\" data-id=\"993c4f5\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-62e7fcf elementor-drop-cap-yes elementor-drop-cap-view-stacked elementor-widget elementor-widget-text-editor\" data-id=\"62e7fcf\" data-element_type=\"widget\" data-settings=\"{&quot;drop_cap&quot;:&quot;yes&quot;}\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.15.0 - 20-08-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\tH<strong>ow<\/strong> <strong>well do you <em>understand<\/em> the costs of retirement villages? You\u2019re probably familiar with the initial entry fee but you might not be aware of the other costs. Additionally, you might not know what these costs <em>actually<\/em> cover.<\/strong>\n\nIn this blog, we\u2019ll run you through the various costs of retirement villages. We\u2019ll explain what exactly the various fees cover and roughly how much you can expect to pay.\n\n&nbsp;\n<h2>Upfront costs of retirement villages<\/h2>\nThe first cost you can expect to pay when moving into a retirement village is <strong>the entry fee<\/strong>. This could range anywhere from $100,000 to several million; it really depends on the village.\n\nAcross Australia, the average entry fee for a retirement village is just over <strong>$450,000<\/strong>.\n\n&nbsp;\n<h3><em><img loading=\"lazy\" decoding=\"async\" class=\"alignright\" src=\"http:\/\/www.villages.com.au/blog\/wp-content\/uploads\/2022\/09\/delia-giandeini-naH97dLRsYs-unsplash-1024x687.jpg\" alt=\"\" width=\"380\" height=\"255\" \/><\/em>\u2014 What am I paying for?<\/h3>\nPaying the entry fee is commonly referred to as <em>\u2018buying-in\u2019 <\/em>to a village. However, this phrase isn\u2019t entirely accurate.\n\nWhen you \u2018buy-in\u2019 you are <strong>entering into a contract<\/strong> to live in that village. You are not actually buying the dwelling itself. Unlike normal property development, you are also <strong>contracting with the village owner<\/strong> to stay on and operate the village. In effect, you\u2019re paying the operator to look after you and your home as you age.\n\n&nbsp;\n<h2>Ongoing costs of retirement villages<\/h2>\nAlmost all villages charge a <strong>weekly or monthly fee<\/strong>. This levy covers the day-to-day operational costs of running the village. Think things like electricity for the common areas, maintenance of gardens and the village manager\u2019s wage.\n\nFortunately, these fees tend to be <strong>very low<\/strong>. This is because it is spread across <em>all residents<\/em> and most villages are designed carefully to keep maintenance down.\n\n&nbsp;\n<h3>\u2014 Deferred Management Fee (DMF)<\/h3>\nThe second cost of living in a village community is the <strong>Departure Management Fee (DMF)<\/strong>. This is <em>only<\/em> paid when you leave the village.\n\nThe DMF is <strong>essentially a form of rent that\u2019s deducted from the lump sum you paid<\/strong> when you entered the village. There\u2019s a standard formula for the DMF, but it generally works out at between 2.5 and 3.5 percent for each year that you live in the village. It is generally (although not always) capped at around 10 years (i.e. 25 to 35 percent).\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Do you understand the costs of retirement villages? In this blog we\u2019ll explain what exactly the various fees cover and roughly how much you can expect to pay.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","om_disable_all_campaigns":false,"_mi_skip_tracking":false,"footnotes":""},"categories":[71],"tags":[85,84,97,82,83,86],"class_list":["post-970","post","type-post","status-publish","format-standard","hentry","category-money","tag-deferred-management-fee","tag-dmf","tag-explained","tag-finance","tag-retirement-villages","tag-village-manager"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.villages.com.au/blog\/wp-json\/wp\/v2\/posts\/970","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.villages.com.au/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.villages.com.au/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.villages.com.au/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.villages.com.au/blog\/wp-json\/wp\/v2\/comments?post=970"}],"version-history":[{"count":20,"href":"https:\/\/www.villages.com.au/blog\/wp-json\/wp\/v2\/posts\/970\/revisions"}],"predecessor-version":[{"id":1588,"href":"https:\/\/www.villages.com.au/blog\/wp-json\/wp\/v2\/posts\/970\/revisions\/1588"}],"wp:attachment":[{"href":"https:\/\/www.villages.com.au/blog\/wp-json\/wp\/v2\/media?parent=970"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.villages.com.au/blog\/wp-json\/wp\/v2\/categories?post=970"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.villages.com.au/blog\/wp-json\/wp\/v2\/tags?post=970"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}