Top Units Traps And Tips For Retirement Villages

A retirement village Brisbane South may be the best choice for someone looking for quality services in their old age. It is, however, important to remember that everything good comes at a cost. There are some on-going costs that one is likely to incur even after they vacate the retirement home or when they pass away.

Entry costs

Entry costs include the ingoing contribution and other costs.

Ingoing contribution

This is the payment for your right to live in a retirement home and acquire other services while in the retirement home. You also pay for the facilities in the home.

Other costs

You will also pay the legal costs for the retirement home to prepare your residence contract. You also pay for registration fees and your own legal fees used to review the residence contract.

On-going costs

This includes body corporate fees, general services charges and optional personal services.

General services charges

You pay for general service charges per month and the charges cover things such as gardening, administration and the provision of other facilities in the retirement home such as recreation centre and pool. The charges include a maintenance reserve fund contribution.

If you pass away or move out, the charges may continue for some time. They go on until the unit is sold.

Optional personal services

Some retirement homes Brisbane offer additional services such as doing your laundry, provision of meals and hairdressing services. If you want to have these services, you will need to pay for them.

Freehold units only/body corporate fees

You will have to pay body corporate fees if the unit is freeholds.

Exit costs

Exit costs include exit fee, reinstatement costs, resale costs, capital gains share and many more.

Exit fee

This is the money you pay to the retirement home and is deducted from the ingoing contribution. This fee is generally a percentage of the ingoing contributed and calculated based on the number of years you have been in the retirement home.

Reinstatement costs

These costs may be paid if you want to reinstate the unit back to the original condition such as replacing carpets and repainting walls.

Resale costs

The retirement home operator’s legal costs may be paid so as to terminate the lease for the unit. It is also a requirement to pay your legal costs.

Repayment of the ingoing contribution

The village operator does not have to repay the ingoing contribution when you vacate the unit until the unit is sold to someone else and the person pays their contribution. If the unit is not sold within 5 years, you will be paid your ingoing contribution fewer costs outstanding and any exit fee. In short, you will wait for a long time to get your money back or if you die, your estate will wait for a long time to get the money.

Capital gains share

The retirement village Brisbane south operator may take a percentage of the capital gains after selling off the unit if you participate in the capital gains share.

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