In October 2021, the leading retirement living provider introduced three contract options – Now, Later and Bond – as an alternative to the traditional Deferred Management Fee. 

“The new contracts have been the foundation for Aveo’s record sales in the past three years and resulted in the reduction of surplus stock,” said Chief Executive Officer Tony Randello (pictured below). 

“Everyone’s financial circumstances or motivations are different, so having a choice of contract allows our customers to decide whether to discount, defer or not pay a management fee, helping them to take the next step into retirement living with confidence.  

Since we introduced our contract choices, we have sold over 1,100 properties via the Now and Bond contract types, which means that a third of new Aveo customers have chosen an alternative to the traditional deferred management fee model.” 

To simplify the process, a Retirement Calculator on the Aveo website allows potential buyers, or family, to enter the price of the proposed retirement property and view the calculations against the three different contract choices. This calculation includes the cost to move in, any management fee, and the payout returned when a resident leaves the community.  

In addition, after a customer has inspected a property within an Aveo community, they can also obtain a Village Guru Report providing that next level of detail about how each contract choice could affect their financial situation, including their pension.  

Aveo’s payment options:  

Now: A discounted management fee paid upfront means the resident won’t be required to pay an exit fee on departure.  

Later: With the management fee deferred and capped at 35% of the entry price, the resident has more capital now to spend on their lifestyle goals.  

Bond: A resident who pays a premium entry price and a 3% non-refundable establishment fee upfront won’t need to pay a management fee later and their premium entry price will be returned.  

“By providing alternatives to the deferred management fee model it opens conversations with customers and encourages them to not only speak to their families about how these choices will impact them, but also to seek financial advice to put them in the best position,’’ Tony said.  

Browse villages.com.au for the latest on Seniors Living including availability.