The Real Cost of Retirement Villages

[@ronsmith2241]

I am just going to stay in my own home. I own it. I or my estate get all the capital gain. We built this as a disabled home to help care for my wife who had MS. She has now passed. Everything I could need in the future is here. I just have to maintain it and I get help to do that. Its all good.

[@sarathw5740]

Good video short and sweet! Please make more videos on other financial matters.

[@ConsortiumPW]

Thanks Sarath, we sure will. Do you have any topics that you would like us to cover? Cheers Rob

[@AridersLifeYT]

i wish i had the ability to start my own retirement village's. id have a set agreed upon exit fee of $10k and either agreed buy back of the original unit price or market value. these villages shouldnt be run for profit, just enough to keep them running.

[@beachbum4691]

Great video - Thank you :) Asked if the phrase "Rip em off and Bleed em' dry" applied, most retirement villages would have to say "Yup" after all, nothing is biased in the tenants favour ? ;)

[@ConsortiumPW]

Thank you John

[@JosieHendry]

I know what exactly the Fees are upon leaving. As you DONT own the Unit, Appt etc at all. You need to do a updated version.

[@ConsortiumPW]

Hi Josie, thanks for your feedback. In the past we have seen many people not been made aware of the fees on the back end clearly via the sales process. The rules have not change in this area for some time, but we agree its time for an updated video. Thanks again, Rob

[@Roman-is4jj]

Thank you for the info.

[@JayDee-po5bc]

Your video was informative & explained some of the things I was unsure about. Have you any idea of how the maintenance fee is worked out & approximately how much it would be on average?

[@ConsortiumPW]

Hi Jacqueline, thanks for the feedback. A maintenance fee can help cover the cost of managing the retirement village, maintaining common areas such as gardens and recreational facilities, and additional services i.e. emergency call system monitoring. A maintenance fee can vary significantly from facility to facility depending on what services are offered so unfortunately, I can't provide an accurate figure for you. All fees should be disclosed in their contracts so it's very important they are read thoroughly and understood prior to committing - Ashley

[@JayDee-po5bc]

Thanks for your reply. The village I am looking at charges a DMF of the purchase price plus 7% each year for 7 years, and they keep any capital gain. Is this usual? I really like the village and it in the area Imprefer to live, but I am a little taken aback at these terms. Could I please have your thoughts on this.

[@ConsortiumPW]

Hi Jacqueline. The DMF that you have described seems to be on the pricier end of the spectrum. As an example, if your purchase price was $500,000 and you then sold your unit for $700,000 in ten years time, you would potentially walk away with $255,000, while the village operator would pocket $445,000. I'm not saying that this is a bad deal, you just need to be aware of and comfortable with the likely outcomes when you decide to leave. The calculation of DMFs differ greatly from village to village. For example, 3% per year for maximum of 10 years is common, or DMF calculated based on sell price instead of purchase price. I suggest that you visit at least 2 or 3 different villages before committing - Ashley

[@JayDee-po5bc]

Thank you for your prompt reply Ashley. My husband & I have also come to the conclusion that the terms I told you of were too high, so we have decided to look elsewhere. We just wanted to stay close to an elderly relative, but we shall have to look further afield. Thanks once again.

[@epacrisimp]

Thank you

[@geob8172]

Corruption that has the blessing of our government criminals.

[@Fegga1955]

👏🏽🙌🙏👌

[@salesprofitscash2317]

Come on...provide more balance in your explanation. RV developers are different than traditional property developers who take all their profit at the point of sale. The DMF model was founded on the basis of “enjoy now and pay later”...good for the resident who now has more dollars available to enjoy life. The RV developer takes his profit at the end...and don’t forget...said developer has to amortise the huge costs of providing the community facilities which cane $4m+ per village. By law there isn’t any profit in the day to day running of mature villages (Qld at any rate). I support your efforts to explain DMF but the underlying rationale needs air time too. Like all ndustries there are rogues...but 70% of the industry on DMF (including almost 100% of the religious and charitable NFP’s) says the model isn’t wrong