Departure fees are fees that may be charged to residents when they leave a retirement village. These fees are intended to cover the costs associated with preparing a resident's unit for resale or reoccupation by a new resident. Departure fees are common in retirement villages across Australia and are typically outlined in the resident's contract.
There are several types of departure fees that may be charged, including deferred management fees, exit fees, and resale fees. Deferred management fees are calculated as a percentage of the initial purchase price of the unit and are paid upon the sale of the unit. Exit fees are charged as a flat rate when the resident leaves the village, while resale fees are charged when the unit is sold.
The amount of the departure fees can vary widely depending on the village and the terms of the contract. Typically, the fees range from around 20-40% of the initial purchase price of the unit, but can be higher in some cases. The fees are intended to cover the cost of refurbishing and maintaining the unit, as well as any costs associated with reselling the unit, such as advertising and real estate commissions.
It is important for residents to understand the departure fees and the terms of their contract before moving into a retirement village. By doing so, they can ensure that they are prepared for the costs associated with leaving the village and can make an informed decision about whether it is a suitable option for their needs and budget.
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Article posted:Jun 20, 2022 Category: Finance
