Looking at moving into a retirement community but wondering what deferred management fees are and what they’ll cost you? While Living Gems don’t charge these fees, many retirement villages do – and it can take a big chunk out of your pocket when you sell. That’s why it pays to be aware of the exact costs before you make a decision.

What are deferred management fees?

Deferred management fees, also known as exit fees, are often charged by retirement villages when you move out. The fees cover a range of costs associated with maintaining the public facilities, along with expenses incurred to refurbish your former home and market it for sale. When you sell your home, this deferred management fee is deducted from the sale price.

Note: At Living Gems there are NO deferred management fees. Ever. Your home is yours to sell and any capital gains you make are yours to keep. 

How are deferred management fees calculated?

Deferred management fees can be complex and often depend on a range of variables. Different retirement villages will have their own unique deferred management fees which may be based on:

• A percentage of your ingoing contribution or purchase price, based on the number of years you’ve lived there
• A percentage of the sale price multiplied by the number of years you’ve lived there
• The new resident’s ingoing contribution or purchase price

The fees are usually capped at a certain percentage. For instance, if the fee is 3 per cent per year up to a maximum of 30 per cent, and you live there for over teb years, the most you’ll pay in deferred management fees is 30 per cent.

Note: There are no hidden entry or exit fees at Living Gems. Instead, you pay an easy-to-manage, affordable weekly site rent that ordinarily assists with resort running costs.

It pays to do your homework

Rather than share a chunk of your sale profits with your retirement village operator, isn’t it better to keep it in your pocket and spend it on you? This is why it’s important to fully understand the incoming and deferred management fees associated with living in a retirement community before you sign on the dotted line. 

When it comes to fees, Living Gems is fully transparent – there are no hidden surprises. Plus, our lifestyle resorts are governed by the Manufactured Homes (Residential Parks) Act 2003, meaning your rights are completely protected. Always!

So, before you make the decision to move into a retirement community, be sure to crunch the numbers on entry and exit fees. You’ll find that moving into a Living Gems lifestyle resort ticks all the boxes:

• You enjoy a premium lifestyle
• Our fee structure is completely transparent
• The ongoing financial benefits ensure you’re always in front

To learn more about the advantages of making the move to Living Gems, get in touch with our team – hello@livinggems.com.au.