Village Manager (027) 252 8232
Freehold Lifestyle Living
The Financial Comparison Between Frimley Village and Licence to Occupy Retirement Villages Retirement villages are becoming an increasingly popular option for people as they choose to downsize from their family home. They offer a myriad of benefits including: An easier lifestyle – where someone else takes care of the lawns and gardens, leaving more time to relax and enjoy life. Companionship – you need never be lonely in a retirement village, with a community of like-minded people as your neighbours. Lifestyle – different retirement villages offer different lifestyle amenities, but all share a common goal – to provide residents with a range of activities and amenities to allow them to enjoy life as much as possible. Security – within a gated community with a Village Manager on site. While different retirement villages offer similar benefits, not all retirement villages are the same in terms of costs. Frimley Village is a FREEHOLD village – not a Licence to Occupy village. This means it has none of the financial penalties that many other kinds of villages have. To make this easier to understand we have summarised the key differences in the table below:
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 Frimley Village  Licence to Occupy Villages  Frimley Lifestyle Villages  Licence to Occupy Villages* What this could mean in reality  Title  Freehold Title

 

 

 

 

 

 

Villa is purchased for $450,000

Villa is sold 10 years later for $500,000

 How much do you get when your villa is sold when you leave? You receive all of the sale proceeds of the villa – the only deductions are for legal fees and a fee payable to the developer for assisting with your sale.

You only receive what you paid for your villa – LESS a Deferred Management Fee of 20%-30% of the purchase price (depending on how many years you have been in the village – typically written off at 5% per annum).

You receive $500,000 less legal and sales fees which we have estimated at $16,000.

TOTAL RECEIVED:  $484,000

 

You receive $450,000 less the DMF of 25% (mid-range) of $112,500. TOTAL RECEIVED:

 $337,500

(or could be as little as $315,000 if the village has a 30% DMF)

 Capital gain  No – the village keeps it  Yes – you keep it
 Weekly fee  $79  $119
 Rates and water  Not included in above, estimated at $2,100 per annum

 

Included in above

FINANCIALLY BETTER OFF BY $146,500

 

 

 

* The deferred Management Fee for License to Occupy Villages can differ amongst operators. The above comparison is offered as an example.