The lowdown on costs
All retirement villages require you pay a variety of costs in addition to the purchase price of your home. You’re not simply paying for a place to live, but a lifestyle; one where you have access to recreational facilities, a monthly calendar of social outings, events and wellness initiatives, and belong in a community with safety, security and support.
At Lendlease, our residents’ peace of mind is of utmost importance to us, which is why we want you to understand the costs involved with living in a village, before you commit to moving in.
The main costs are:
- Ingoing contribution (the purchase price of your new home)
- Monthly service fee (from which Lendlease does not profit)
- Upfront or Deferred Management Fee (depending on contract)
- Capital gain sharing (depending on contract) and reselling fees
Ingoing contribution (The cost of your home)
The way in which homes are bought and sold within a Lendlease retirement village is similar to the way property is bought and sold traditionally. When a resident decides to sell, they work in collaboration with the village sales team to determine the sale price for their house, apartment or serviced apartment.
The sale price varies depending on the size, style, condition and position of the home. Lendlease will assist a resident in gaining the best sale price for the home. Outgoing residents are free to choose any real estate agent they like to sell their home, but many choose to use the services of our dedicated sales teams, who have expertise selling homes in a retirement village. Depending on your contract terms, we may charge a selling fee.
Ongoing costs (The monthly service fee)
All residents in Lendlease Retirement Villages pay a monthly service fee, regardless of their contract type. In accordance with legislation, Lendlease does not profit from these fees. The Monthly Service
Fees go towards the daily costs of operating the village which may include*:
- Water – for the village community
- Leisure facilities including swimming pool
- Front garden maintenance and village landscaping
- Body corporate fees
- Building insurance
- Street lights and electricity for the village community
- Village bus transport (where applicable)
- Village management team
- Long term maintenance or sinking fund contribution
Each year the Village Manager prepares the village budget in consultation with the resident committee with a process prescribed by legislation if the increase is above CPI. This process determines the monthly fees. In addition to the service fee you will also be responsible for the cost of repair, maintenance and replacement of any fixtures and fittings in your home and will need to pay for additional personal expenses such as your own telephone, electricity and contents insurance.
*Inclusions may vary, please check with the village Sales Manager for specific details on the village you are interested in.
Outgoing costs (when you move out of the village)
When you move out of your village, you generally need to account for any wear and tear to your home, by covering the costs of a basic refurbishment, which typically involves new carpet and painting throughout, servicing the appliances and a comprehensive clean.
Lendlease calls this process a “reinstatement”. By way of example, to reinstate a two-bedroom, one-bathroom home might cost between $8,000 and $12,000 depending on its condition. The work can be managed by Lendlease, according to strict standards.
Undertaking a basic reinstatement will ensure your home can be successfully on-sold. Sometimes the sale price and market appetite for a home may improve if more than just a basic reinstatement is undertaken. In these cases, the resident and the Lendlease sales team work together to decide what’s most appropriate. More extensive reinstatement might involve a bathroom or kitchen renovation.
Lendlease does not force a resident to take on more extensive reinstatement, it’s entirely the resident’s decision.
Overall, retirement living might be less financially profitable than buying into the traditional property market, but thousands of people have already seen the benefit of investing in a lifestyle that provides security, support, community and peace of mind – something that money alone can’t buy.
Every village has varying other costs associated with selling.