What are the Costs
At Oak Tree Retirement Villages we understand that everyone has different financial circumstances and objectives. This is why we have tailor designed different purchase models to choose from to help keep our villas affordable across each of our villages.
The cost you will pay to reside in an Oak Tree villa depends on which village you are buying into, the size of the villa and what sort of facilities and services are available.
Typically you will pay:
Because we understand you manage your money very carefully, Oak Tree typically offers two purchase models across most of our villages which allows you to choose the purchase model that best suits your needs.
Oak Tree villa prices are usually less then what you would sell your current home for. This means most people can usually afford to buy into our village and still have money left over from the sale of their home.
Two of our most common purchase models are loosely explained below....
Our Traditional Purchase Option means you can buy into our villages at a discounted price and enjoy your new home and the village facilities and services for less. Upon selling your home at the end of your stay a deferred management fee, or exit fee, is payable to Oak Tree from the funds collected by you at settlement.
Our Standard Purchase Option means you can buy into our village at a higher price but enjoy the plus side of enjoying the capital growth accrued on your villa over the length of time you live in the village. A deferred management fee, or exit fee, is also payable to Oak Tree from the funds collected by you at settlement.
In most villages our residents are also able to enjoy no stamp duty or GST on their purchase.
General Service Charge
Similar to a body corporate fee, a service charge or a levy is charged to each resident at Oak Tree to help pay for the day-to-day running costs and upkeep of the village. The general service charge assesses the area footprint each villa occupies and is calculated by dividing the village costs across the number of villas in a village.
The fee is used to cover such services as:
- Rates, including water
- Building insurance
- Village Management, including salaries
- Maintaining and cleaning the village recreational facilities and common areas, including all lawns and gardens
- The recreational facility running costs – eg gas and electricity
The only main costs you will need to pay after this are your own telephone, electricity, personal contents insurance as well as any additional services you choose to use, including internet, foxtel, emergency call assistance etc.
Deferred Management Fee (Exit Fee)
As is the way with the majority of retirement villages throughout Australia, Oak Tree Retirement Villages collects a Deferred Management Fee (DMF), or an exit fee as it is sometimes called, at the end of your stay with Oak Tree. The exit fee helps cover the initial investment in the land and the construction of the village infrastructure and community facilities. The fee is deferred until you leave the village rather then charged to you in the beginning so as to help keep our villa prices as affordable as possible.
Make good/selling costs
Just as would be the case when you sell your current home, there may be some costs involved to ensure your villa is at a standard where you can receive the highest possible sale price. Oak Tree residents are required to return their villa to a similar standard to which it was when they moved in (capital improvements an exception). Often this might mean that new carpets need to be layed, or a fresh coat of paint applied. It really depends on how long you have lived in the villa and the amount of wear and tear that has occurred.
There may also be some selling costs involved to market your villa to our waiting list or the general public. These costs are agreed upon beforehand.