Australia’s fourth largest retirement village operator, RetireAustralia, is introducing a new contract “that will remove uncertainty for prospective retirement village residents and their families”. The key points are:
- Fixed monthly fees for life
- Three year exit fee capped at 35% of purchase price
- No refurbishment fees
- No sales commission or marketing fees
- Capped fees while your unit is on the market
- Guaranteed buyback within 12 months (6 months in New South Wales)
- No capital loss or gain
They have the support of the key QLD residents’ association (the ARQRV) and have piloted it across five villages for six months without concerns.
CEO Alison Quinn tells us the DMF is 10%/12%/13% over the three years. This compares for instance against the Aveo Way contract of 14%/14%/7%.
Initially the contract will cover ILUs only; serviced apartments will follow.
