Retirement Living Costs and Contracts

Costs

There are four main categories of costs when it comes to moving into a home in a retirement village. 

Deposits – Properties for Sale

If you have chosen a home that was for sale, you will be required to pay two deposits before moving in: 

1. A holding deposit of $1,000 to secure your new home 
2. A further $9,000 deposit once your licence contract has been signed  

All deposits are fully refundable. 

Ingoing Contribution (Purchase Price of the Property)

An ingoing contribution is a one-off payment that gives you the right to live in a home within a retirement village, whether it be an apartment or a villa - this is the purchase price. At The Salvation Army, we offer our homes under a Loan Licence Contract (which means you are a non-interest holder).  

Recurrent Charges (Ongoing Monthly Charges)

In NSW, a recurrent charge is a payment made to cover the ongoing costs of operating the village. These fees are paid monthly through your statement and cover items relating to amenities, staff wages, gardening, council rates, insurance and capital maintenance. Please note that a portion of recurrent charges is set aside to contribute to the Capital Works Fund as part of capital maintenance requirements.

From 1 July each year, the recurrent charges generally increase annually - depending on the village, the increase may be in line with CPI or higher. If charges increase by more than CPI, residents must approve the increase through a ballot vote.

In Queensland, a recurrent charge is known as a general services charge and it is used for the same purposes mentioned above. In addition to the general services charge, there is a maintenance reserve charge, which is used to fund items relating to repairs, servicing and capital maintenance.

Any replacement of items in NSW and Queensland is covered by the operator (The Salvation Army in this instance), whether it’s in your home or in the communal facilities. However, repairs, servicing and capital expenditure are covered through recurrent charges.

Deferred Management Fee (Exit Fee)

A deferred management fee (DMF), often called an exit fee or departure fee, is a fee you will pay upon leaving a retirement village. This is calculated as a percentage of the ingoing contribution price and the length of your residence.

Our DMF is capped at 30% of your ingoing contribution after three years of living in the village:

• 10% for the 1st year
• 20% for the 2nd year
• 30% for the 3rd year
• 30% for the 4th year and thereafter

Please note: This fee is not applied in a rental model, like Shaftesbury Court Retirement Village, as an ingoing contribution is not paid.