Retirement Living Costs Explained

At BaptistCare, we understand that everyone’s financial situation is different. That’s why we offer flexible financial options designed to suit your individual needs and budget. This guide explains the three key components of our Loan Licence Agreement: your ingoing contribution, ongoing fees, and the Deferred Management Fee (DMF). With clear, upfront information and options that prioritise peace of mind, you can make a confident choice about your future.

Ingoing

Your ingoing contribution is also known as the ‘entry payment’ or ‘purchase price’. BaptistCare offers a Loan Licence Agreement, whereby your ingoing contribution is paid to us as an interest-free loan. There are many benefits to this type of agreement, including:

• No Stamp Duty

• No capital replacements (unlike stratatitled properties)

• No refurbishment or resale costs when you leave

Ongoing

• Free up cash for your lifestyle

• Guaranteed fixed return (no capital gain or loss to share)

• Flexibility to change your mind and receive a refund up to 90 days after moving in

Ongoing fees, also known as the ‘recurrent fee’, contribute to the cost of operating the village. These include expenses such as council rates, building insurance, maintenance of your home, village amenities and employees. A budget is prepared and provided to you annually. It is also available on request at any time throughout the year.

Outgoing

The Deferred Management Fee (DMF), often called the ‘exit fee’ or ‘outgoing fee’, is payable when you permanently vacate your home. This fee helps fund the continuous development and improvement of the village’s services and facilities. The DMF is accumulated over the first six years of your stay. If you leave before six years, the fee will be calculated on a pro rata basis, depending on how long you’ve lived in the village.

Unless you choose a 100% Deferred Management Fee (DMF) option, you will receive a refund of your ingoing contribution—less the DMF—when you leave.*

Flexible entry payment options

BaptistCare offers flexible financial options tailored to suit your individual needs and budget. You can choose an option that provides clarity on what you’ll pay and what you’ll receive when you leave.

• By paying more upfront, you can reduce your DMF or receive a maximum refund when you leave.*

• Alternatively, you can choose to pay less upfront and contribute more as a DMF when you leave.

We’re here to help you explore a range of options to find one that suits your financial situation. Please feel free to talk to us, and we’ll walk you through your choices.

Examples of Flexible Financial Options

3 Bedrooms 2 Bathrooms

1 Car Park

*You may have to pay a departure fee when you leave the village. Further information can be found on the Fair-Trading Website. The refund amount will vary depending on your ingoing contribution and the DMF % you have opted for. It will also be pending the condition of the premises as it’s returned to BaptistCare. The refund amounts listed in the table are for after 6 years.

BaptistCare recommends that all prospective residents seek independent advice from a licensed financial advisor and solicitor before entering into a retirement living agreement. This will help ensure the option you choose aligns with your personal and financial circumstances.