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QUEENSLAND 2020
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The village is funded by the residents who ‘purchase’ their villa or apartment under one of the tenure arrangements. The residents also contribute to the village’s capital infrastructure and the cost of ongoing management. Donor funded villages are normally owned and operated by not-for-profit organisations or church groups. They include an element of charitable subsidy and entry is generally restricted to the needy.
Ownership
The various forms of occupation or ownership rights are referred to as ‘tenure’. The legal forms of tenure include Strata Title ownership, leasehold estates, licences to occupy, freehold or company share arrangement with related residency entitlements.
Deposit or entry contribution?
Before moving into a village, you will need to pay an entry contribution which is refunded if you move out of the village. However, a Deferred Management Fee (DMF) usually applies, and is deducted from the amount you receive back. This must be specified in the entry agreement or contract. The cost of entering a village depends on the facilities and services offered. Monthly service and maintenance charges also apply and you may have to pay for extra personal services like laundry. To reserve a villa, a nominal deposit is required and the village will have a policy on how long it can be held for you. Should you change your mind within this specified time, the deposit will be refunded. If you enter into a binding arrangement with the village, the deposit will be part of the purchase price. In some States and Territories, purchasers are entitled to a refund during a ‘cooling off’ period following the signing of a residency contract. Be sure to make enquiries regarding this as some villages may require an administration fee for refunds.
Fees and charges
There are many fees and charges associated with living in a retirement village. Ensure you are provided with full details of all applicable charges and what they cover. For example, there may be a regular maintenance charge that covers the running costs of the entire village. These costs may include upkeep of facilities, staff, council and water rates from common areas, security, insurances including workers’ compensation and public liability, contents insurance for common areas as well as village building insurance. In addition, the charge may also contribute toward a ‘sinking fund’ for major repairs and improvements.
Retirement living
Regardless of the type of tenure, residents are consulted about the ongoing management of the village. This ensures that the village you have chosen cannot be changed without the approval of the residents.