Retirement villages vs aged care
Retirement villages and aged care aren’t the same thing.
Our Prepaid Plan explained
Wednesday, 18 June 2025
Our Prepaid Plan is a clear, no surprises approach to retirement living that puts you in control.
Retirement is for enjoying life, not worrying about what might pop up down the track. Our Prepaid Plan lets you pay upfront with a clear, straightforward contract that gives you certainty from day one.
You pay for your home and an upfront management fee when you move in - and that’s pretty much it. No exit fees. No unexpected expenses. And if your home goes up in value, that gain is yours to keep.
Let’s take a closer look at how it works, what’s included and whether it might be the right fit for you.
What is the Prepaid Plan?
When you choose the Prepaid Plan, you cover the village management fees up front when you move in, along with the purchase price of your home. There are no exit fees or deferred fees later on. And if your home sells for more than you paid, you keep the capital gain.
It’s a clear, upfront contract that gives you confidence and control from day one.
How does it work?
The Prepaid Plan gives you clarity from the start. When you move in, you’ll make two upfront payments:
- The price of your property: the cost of your unit or villa
- A one off management fee: paid at the start, not at the end
You’ll also pay an ongoing monthly services fee, which covers day to day village operations like gardening, maintenance and access to all the village amenities like the pool, spa, gym and more.
➡️ Read more about what our monthly services fee covers.
Because the management fee is paid upfront, there are no exit fees or deferred costs to worry about when you leave. If you decide to move out or if the home is sold as part of your estate, we will help arrange the sale at the current market value.
You (or your estate) will receive the full sale proceeds, including any capital gain, minus standard costs such as:
- Selling costs
- Legal fees
- Refurbishment or reinstatement costs
- Any outstanding service fees (if applicable)
In short, if your home increases in value, you keep the benefit - making this a financially transparent and potentially rewarding option.
💡Good to know: Getting your home ready to sell
One of the benefits of the Prepaid Plan is that you keep any capital gain when your home sells - so it makes sense to give it the best chance of achieving a good price.
When it’s time to move out, you may need to cover the cost of getting your home ready for sale. This is pretty standard and helps take care of general wear and tear. Costs will depend on the condition of your home, how long you've lived there and local requirements.
Under the Prepaid Plan, this usually means a basic reinstatement, which could include:
- Fresh carpet
- Repainting throughout
- Servicing appliances
- A detailed clean
We’ll help take care of the process and make sure everything meets the right standards. A well presented home can really help it shine on the market. And since the sale proceeds (including any capital gain) go to you, it’s worth giving it that final polish.
What are the benefits?
One of the biggest benefits of the Prepaid Plan is that it covers the major costs upfront. With no exit fees when you leave and the ability to keep any capital gain when you sell, it’s a simple, no surprises option that gives you more control over your future.
✅ No exit fees: You won’t be charged any deferred management fees when you leave - your contribution is refunded in full.
✅ You keep the capital gain: If your home sells for more than you paid, that profit is all yours.
✅ Monthly fees stop: At leasehold villages, your monthly service fees stop 42 days after you leave.
✅ Change of mind: If you decide retirement village life isn’t for you, you may be eligible for a refund within our cooling off period.
Things to keep in mind
Like any contract, it’s worth looking at the details before deciding if the Prepaid Plan is the right fit for you. While this option gives you good visibility over the costs when you leave, there are a couple of expenses to be aware of:
ℹ️ Refurbishment costs: You may need to cover the cost of getting your home ready for resale.
ℹ️ Sales and marketing fees: Fees apply when it comes time to market and sell your home.
Are there any exit fees?
There are no exit fees when you leave. That’s one of the biggest advantages of the Prepaid Plan.
While some retirement village contracts include a Deferred Management Fee (DMF) - this plan has no exit fees when you leave. You’ve already paid the management fee upfront, so there are no surprises later.
This can be a big comfort, especially for those who want to plan ahead or make things simpler for family members handling their estate in the future.
How is this different from a deferred contract?
With our Prepaid Plan, the management fee you pay upfront is the same amount as the deferred management fee (DMF) you would otherwise pay at the end in a traditional retirement village contract. The difference is when you pay it. Let's break it down:
Prepaid Plan | Deferred Management Fee |
🏠 Pay the management fee upfront - your home price may be more in line with local residential market values. | 💰 Pay less upfront. It may be more affordable compared to similar homes in the local residential market. |
✅ No management fee when you leave - you’ve already paid it upfront. | ➡️ The deferred management fee is deducted later, when you leave the village. |
It’s simply a choice of when you prefer to pay - now or later - with the peace of mind that there are no exit fees down the track.
Is the Prepaid Plan the right choice?
The Prepaid Plan might be just the thing if you like to have everything sorted from the get go. You’ll pay the big costs upfront, so there are no surprises later and if your home goes up in value, that gain is yours.
This option could be a great fit if | Consider another contract type if |
✅ You want to keep any capital gains from the sale of your home | ➡️ You’d prefer not to cover selling costs when you leave |
✅ You’d rather avoid exit fees | ➡️ You’d prefer lower upfront costs |
✅ You like knowing exactly what your fees will be from the start | ➡️ You want to leave a fixed, known amount to your estate |
Looking for other contract options?
The Prepaid Plan is a great way to get peace of mind with upfront costs, but it’s not the only contract we offer. There are four different contract types - each with different benefits, depending on your financial goals and stage of life.
💡 Want to compare? Check out this article for a breakdown of the fees across our other contract types.
Need some advice?
Big decisions are always easier with the right support. While our friendly team is here to walk you through your retirement village contract options, it’s also a smart move to chat with a solicitor or financial adviser you trust - just to make sure everything lines up with your goals.
➡️ Check out our blog on finding good financial advice for retirees.
Make a confident choice
The contract you choose can have a big impact on how secure and stress free your retirement feels. Whether you're after something simple, want upfront clarity or prefer to spread out your costs, understanding the ins and outs of each contract option will help you make the choice that’s right for you.
Keen to talk it through? Get in touch with our friendly team of retirement village experts today.
The information contained in this article is general in nature and is not specific to you. You should obtain your own independent legal advice before entering into any of our contract.
For more information about the lifestyle and support offered at our retirement villages, call our customer service team on 1800 550 550 or send us an email here.
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