Retirement living frequently asked questions

• What is Retirement Living?

  Are you simply wishing to downsize and retire with ease? Then retirement living could be the perfect solution for you. Our Retirement Villages are designed for independent over 55’s who are looking to make the most of their lifestyle during their retirement without the hassle of maintaining a home. Residents at our Retirement Villages enjoy the added benefits of security, a range of activities and facilities and a community of like-minded people.

   

• What’s the difference between a Retirement Village and Aged Care?

  Retirement Living and Aged Care are not the same.

  Retirement Living is for people over 55 who can live independently and wish to do so in a Retirement Village due to the many benefits that this lifestyle can offer including downsizing, a lifestyle change, purpose built facilities, added security and meeting new people in a friendly community.

   

  On the other hand, Aged Care involves support services for those aged 65 years old and over (50 years or older if you identify as an Aboriginal or Torres Strait Islander person), which are usually required due to age related health conditions. Aged Care can be provided as Home Care Services (support provided where you live such as in your family home or in a Retirement Village), Residential Aged Care (support provided within a special care home) or flexible services such as respite care and the majority of people who use aged care services do so with a government subsidy. To learn more about Government subsidies for Aged Care, please view the links below:

  • Home Care Services: Overview of Fees, Caps and Government Subsidies, please click here.
    
    
  • Residential Aged Care: Overview of Fees, Caps and Government Subsidies, please click here. 

   

  A few organisations such as Catholic Healthcare provide both Retirement Living and Aged Care services. 

• Retirement Living commonly used terms

  Please see below for a quick overview of commonly used terms associated with Retirement Living:
  

   

  • Capital Works Fund - This is a fund established and maintained by the Village Operator for the purpose of maintaining items of capital in the village such as buildings, plant, machinery, and equipment.  
    
    
  • Cooling-Off Period - Upon entering into a Retirement Village contract, there is a statutory seven (7) business day cooling-off period, where you may elect to cancel the contract if you haven’t commenced living in the premises.
    
    
  • Departure Fee  (also known as deferred management fee or DMF), this is an amount calculated based on the length of your residency in the Village and deducted from your ingoing contribution when you permanently vacate the premises.
    
    
  • General Services - These are services provided by the Village Operator to you and the other residents of a Retirement Village. The cost of these services are included in the recurrent charges. Examples of general services may include management and administration of the village, gardening and general maintenance or maintaining an emergency call system.
    
    
  • Holding Deposit means money paid to the operator of a retirement village in consideration for not offering particular residential premises in the village to any other person pending a prospective resident’s entering into a residence contract with the operator.
    
    
  • Ingoing Contribution  - This is an upfront payment for the right to occupy the Retirement Village premises and will be refunded at the end of your tenure (minus the departure fee and any other costs payable under the village contract).
    
    
  • Optional Services (also known as personal services), some village operators may provide additional services on a pay as you go basis. E.g. meals, laundry services, cleaning of resident’s premises. Catholic Healthcare does not provide these services directly to retirement villages but if you qualify you may be able to arrange these types of services through a Home Care Package.
    
    
  • Recurrent Charge  - this is usually a fortnightly or monthly contribution(including rent) towards the retirement village budget for the ongoing operation and maintenance of the village as well as the provision of general services.
    
    
  • Settling-In Period-  There is a statutory 90 day period from the date of moving into the Premises where You are able to cancel your contract. To find out what happens with regards to fees, charges and refunds if a contract is terminated within the settling-in period, please read “What happens if I move in and decide the Village isn’t right for me?”
    
    
  • Village Budget - Residents effectively pay for the services provided by the village operator through recurrent charges. The collection and allocation of the recurrent charges is set out in the annual village budget.
    
    
  • Village Contract -  Also known as residence contracts, this is the contract that you enter into to reside in a Retirement Village and a sample of the village contract is available upon request if you would like to discuss it with your legal representative prior to making a firm commitment. Your village contract will include:

  1. The standard contract
  2. The disclosure statement
  3. The village rules
  4. The condition report
  5. Floor plans of the village and the premises
  6. List of standard inclusions
  7. Services & Facilities

  Your village contract will be provided no later than 14 days prior to occupation of your premises. This allows you 14 days in which to consider the terms and conditions of the contract and to seek legal advice prior to signing. You have a statutory cooling off period of seven days after you sign the agreement (provided you do not move into the premises within those seven days) and a statutory 90-day settling-in period (which commences from the date of occupation of your premises).
  
  

  • Village Rules - These are the rules for the use, enjoyment, control and management of the retirement village which residents must comply with.
    
    
  • Stamp Duty – When buying a freehold interest in a retirement village e.g. in a Strata Scheme stamp duty is payable like any other residential property transaction. In a Loan Licence arrangement or a rental arrangement Stamp Duty is not payable. Catholic Healthcare operates its Villages on a Loan Licence or a rental basis only, so no stamp duty is payable under a Catholic Healthcare Village Contract.
• How do I choose a Village that’s right for me?

  Make an appointment to meet with a Catholic Healthcare Village Manager and have them show you around. Their attitude and rapport with residents will give you a good indication of life at the Village. You might also ask to attend upcoming social events so that you can meet the other residents and get a feel for whether it is the right fit for you.

• What fees and charges are involved with Retirement Living?

  The cost of Retirement Living will vary depending on several factors including:

  • The Village you live in 
  • The size of the property you choose to live in (for example a three-bedroom unit is likely to cost more than a one bedroom unit).

  There are also several fees and charges associated with Retirement Living besides the cost of your home that you should discuss with your financial advisor before entering into any contractual agreements.

   

  For example:

  Ingoing contribution (Premises cost)	$800,000
  Deposit paid	$5,000
  Ingoing contribution balance	$795,000
  Deferred Management Fee (6yrs+ at 5% p.a)	-$240,000
  Amount of Ingoing contribution refunded at end of tenure (assuming 6 years or more occupancy)	$560,000

   

  Like with any major decision, it is important you understand the cost implications and discuss your options with your financial advisor before entering into any agreements or contracts. Below is a list of the types of fees and charges you can expect from a Retirement Village:

   

  1. Holding Deposit means money paid to the operator of a retirement village in consideration for not offering particular residential premises in the village to any other person pending a prospective resident’s entering into a residence contract with the operator.
     
     
  2. Ingoing Contribution  - This is an upfront payment for the right to occupy the Retirement Village premises and will be refunded at the end of your tenure (minus the departure fee and any other costs payable under the village contract).
     
     
  3. Recurrent Charge  - this is usually a fortnightly or monthly contribution (including rent) towards the Retirement Village budget for the ongoing operation and maintenance of the Village as well as the provision of general services.
     
     
  4. Departure Fee (also known as deferred management fee or DMF), this is deducted from your ingoing contribution when you permanently vacate the premises and usually includes costs for refurbishment and sales. 
     
• What are the ongoing costs or recurrent charges for retirement living?

  Residents contribute a fortnightly or monthly amount to the Village budget (including rent), known as a recurrent charge.

   

  These monies are used for the day-to-day operation of the Village and expenditure of these monies is approved each year by the village residents. The amount of the fees will vary depending on the services offered and the staffing required at a particular village. All residents are provided with quarterly financial statements to reflect the expenditure in the Village.

   

  Within Catholic Healthcare, the Management Team meet with residents each year to determine the village needs for the coming financial year. A statement of proposed expenditure is prepared and presented to residents for their comment and review. Residents then have time to revise and approve the planned expenditure. Once approved, the proposed expenditure statement becomes the village budget.

   

  Catholic Healthcare cannot spend monies other than what has been approved in the budget without the express permission of residents.

   

  Maintenance fees generally include (but may not be limited to):

  • Salaries – such as manager, gardener, maintenance person
  • Repairs and maintenance of items within the Village
  • Insurances
  • Resident transport
  • Emergency call systems
  • Fire and safety monitoring
  • Common area lighting, cooling and heating

   

  Audited financial reports are distributed to residents each year in the month of October.

• What happens when I move out of my premises?

  There may come a day when you decide to, or must move out. Under this scenario, you will receive a refund of your ingoing contribution (less the deferred management fee) within 6 months of your departure, or within 14 days of a new resident moving into the premises, whichever occurs first. You will be responsible for recurrent charges until a new resident moves into the premises, to a maximum of 42 days. You are responsible to return the premises to Catholic Healthcare as nearly as possible in the same condition as they were in when you took possession (fair wear and tear excepted) Catholic Healthcare will carry out the refurbishment (for normal wear and tear), and sale of your premises at no charge.