In November last year, private retirement village and aged care operator TriCare stated its villages were only for people aged over 75 years, with the average age in its nine villages at 84.
However, they have returned to an Over 65 age stipulation but adjusted the DMF.
New residents will now pay an Exit Fee of 3.5% of the Ingoing Purchase Price for each year of residence to a maximum of 98% of the Ingoing Purchase Price (after 28 years).
When The Weekly SOURCE spoke to TriCare’s Sales & Marketing Manager Kat Xavier last November, she said there were people in the villages that had lived there for more than 30 years, when the minimum age was 55.
Under the new contracts that person living there for over 30 years would pay TriCare 98% of the Ingoing Purchase Price.
The 2023 PwC/Property Council Retirement Census states the average stay in a retirement village is nine years.
Under TriCare’s contract, a resident would be paying no more, in fact less, than at other retirement villages.
The Exit Fee is 17.5% of the ingoing contribution after five years of residence, 24.5% of the ingoing contribution after seven years of residence and 35% of the ingoing contribution after 10 years.
"Today, it’s rare for residents to reside in our villages for decades. As a result, our new contracts are much fairer, ensuring residents contribute a consistent amount each year for the duration of their stay," said Kat.
"Under our previous contract, residents would reach a 35% DMF in five years, whereas the new contract extends this to 10 years. With an average tenure of around 7.2 years, most residents will end up paying approximately 25.2% instead of the 35% DMF they would have under the old contract system."
Levande’s Pine Lake Village in the Gold Coast suburb of Elanora, has two contracts: Peace of Mind with an Exit Fee of 5% of the purchase price or ingoing contribution per year, on a pro-rata daily basis, up to a maximum of five years (25%); or Capital Share (residents get 50% of capital gain or loss) with an Exit Fee of 5% of the purchase price or ingoing contribution per year, on a pro-rata daily basis, up to a maximum of seven years (35%),
RetireAustralia’s The Verge at Burleigh Golf Club, in Miami, Gold Coast, has an Exit Fee of 10% of the ingoing contribution for the first year of residence, plus 12% for the second year, plus 13% for the third year, to a maximum of three years (35%).
Lutheran Services’ St Andrews in Tallebudgera, Gold Coast, has a maximum Exit Fee of 30% of the ingoing contribution after five years of residence with no capital gain share.
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