- July 22, 2019
- Posted by: alexmaguire
- Category: Roleystone
Robin Glades Over 55’s independent living village in Roleystone, Perth Western Australia differs from other retirement developments because you purchase your home freehold under a strata title with no Deferred Management Fees. You own the home that you build and the land that it is built upon.
Many other retirement village developments offer only a ‘right to occupy’ or a leasehold arrangement which involve Deferred Management Fees also known as Departure or Exit fees. There have been examples where you would pay an outright fee for the ‘right to occupy’ but this doesn’t include the garage or car port which incur an additional monthly fee. Then there is the agreed to share of any capital gain, the cleaning and refurbishment on exit fee or perhaps the delay in discharge of funds post exit as contracted.
There is also the argument that a deferred fees structure means that you purchase at a lower cost than say a strata development and ‘defer’ payment of the difference until exit yet often when the total cost is calculated over a period of time the cost of deferred management arrangement can often exceed and markedly so that of an outright strata ownership village.
As an example this fee requires that you pay a percentage of your property’s sale price back to the development when you choose to leave.
Examples of DMF fees are:
- 2.5% per annum, capped at 25% after 10 years and applied to
the entry price, with any capital gain shared 50/50;
- or 3% per annum, capped at 30% after 10 years.
Robin Glades encourages you to do your homework, speak to your lawyer and accountant and understand the key differences when looking at your retirement options.
A Robin Glades property purchase is for strata ownership of both house and land with your only ongoing fees being your council rates and a quarterly strata fee which we have worked hard to keep to a minimum.
If you require any further information we are always here to assist you.