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What are retirement village exit fees?

Tuesday, 06 October 2020

We explain the deferred management fee (DMF) or retirement village exit fee and list our other contract options, including those with no exit fees.

It is common practice in retirement villages to include an exit fee when selling your village apartment. This fee is usually known as the deferred management fee, or DMF, and it is the most common financing model for Australian retirement villages. Read on to learn more about the DMF model, as well as other contract options to manage your exit fees.

Deferred management fee explained

Under the DMF model, you defer payment of your management fees until after you leave the village. This means you can buy your retirement home at a more affordable price and defer part of the cost of living in the village until after you leave.

The deferred management fee is suitable for those who prefer to have more cash in the bank to enjoy their retirement years.

The amount of DMF you pay when you leave depends on different factors, such as:

the price of your home
how long you live in the village
whether you opt to share in any capital gains.

Help estimating your exit fees

If you want to know how much DMF you would have to pay, please reach out to our expert sales team members, who are available to speak with you at our villages across the country. They’re equipped with easy-to-use tools to help you compare options at your chosen village.

The sales expert will also be able to show you the price you pay on entry and your estimated entitlement when you leave, based on 10 years of occupancy. They will also have the calculation mapped out across the different contract options on one handy page, providing complete transparency so you can make an informed decision.

Our other contract options

Don't think the DMF exit fee sounds right for you? Then one of these 3 alternative options might be the better choice for your circumstances:

Prepaid plan: you pay management fees upfront and retain any capital gain on exit.
Refundable contribution: you pay an upfront entry fee, which you get back within 60 days of exit. There is no upfront management fee or exit fee.
Pay as you go: you pay in monthly instalments (only available at selected villages)

Learn more about the different contract options here.

The difference between the deferred management fee and other contracts

Watch the video below to find out more about all of our contract options*.