Exploring retirement living is an exciting step, but it’s natural to have questions about how costs work. Retirement living pricing structures can differ from traditional property purchases, so understanding the key components can help you plan with confidence.
At Calvary Retirement Living, we believe in providing clear information so you can make informed decisions about what feels right for you.
While costs vary between communities and contract types, retirement living arrangements generally include three main components; an entry contribution, ongoing fees, and an exit fee, often referred to as a Deferred Management Fee.
Entry contribution
When you move into a retirement community, you typically pay an entry contribution. This amount varies depending on:
The location of the community
The size and style of the home
The contract type offered
In many retirement villages across Australia, residents are granted a right to reside in their home, often through a lease or license agreement, rather than purchasing the property outright.
Contract structures can differ between communities and states. At Calvary, contract options vary by location. Our team can explain the arrangements available at your preferred community and provide the relevant disclosure documents for your review.
Ongoing fees
Retirement living communities generally include regular ongoing or recurrent charges. These fees support the operation and upkeep of the village. Depending on the location, they may contribute to:
- Gardening and landscaping maintenance of communal areas
- Village management and administration
- Shared facilities and amenities
- Building insurance for village-owned structures
One of the key benefits of retirement living is enjoying a supported, lower-maintenance lifestyle. With shared areas and external maintenance taken care of, residents can focus more on the things they value, whether that’s travel, hobbies or time with family and friends.
The Retirement Living Operator cannot make money from these fees and the budget should be a breakeven budget. Any increase of ongoing fees year on year that is above CPI requires resident approval.
Exit and Deferred Management Fees
In many retirement villages, an exit fee is payable when you permanently leave the community.
This is commonly referred to as a Deferred Management Fee (DMF). A DMF arrangement allows part of the operator’s management costs to be deferred until departure, rather than paid entirely upfront.
The structure and amount of any exit fee are agreed in the contract before you move in. The amount payable can depend on factors such as:
- The entry contribution
- The length of time you live in the community
- The specific terms of your contract
- Whether your agreement includes sharing in any capital gain
Some contracts may reduce upfront costs by deferring certain fees until exit, while others may be structured differently. Contract options can vary by location. At Calvary, we offer a range of contract models across our communities. Our team can explain the options available at your chosen location in detail.
Are there hidden costs?
It’s common to worry about unexpected expenses. Retirement village operators in Australia must comply with the retirement villages legislation in their state or territory.
The Retirement Villages Act is a piece of consumer protection legislation designed to protect residents.
These laws require disclosure of key financial information before a contract is signed.
Before entering into an agreement, you will receive documents outlining:
- Fees and charges
- How exit payments are calculated
- Ongoing responsibilities
- Your rights and protections
Because fee structures can be complex, we strongly encourage you to engage with our team for support and seek independent legal and financial advice before signing any contract.
Finding clarity
Costs in retirement living depend on individual circumstances, location, and contract type. The best way to understand the full picture is to have a conversation about your preferred Calvary community and review the documentation specific to that village.
Retirement living is about choice, independence and planning ahead. Understanding how the financial structure works is simply part of making a confident decision. If you would like to discuss costs at a specific Calvary Retirement Living community, our team is here to help.
Have questions about retirement living costs?
Frequently asked questions
Learn more about retirement living fees, contracts, your rights as a resident and what to expect financially when moving into or leaving a Calvary retirement community.
Retirement living communities in Australia are generally designed for older adults, often people aged 55 years and over. Eligibility requirements can vary between communities and by state. If you’re considering Calvary Retirement Living, our team can help you understand the eligibility requirements for your preferred community.
All Calvary retirement communities operate in accordance with the relevant Retirement Villages Act in the state or territory where the community is located. This legislation is designed to protect residents’ rights and interests at every stage of retirement living, from entering a village, to living there, and when leaving.
The Retirement Villages Act sets out important protections around matters such as contracts, fees, services, dispute resolution and resident wellbeing. If you would like a copy of the Retirement Villages Act that applies to your Calvary community, you can contact the appropriate state or territory government body, or get in touch with Calvary and we will be happy to assist.
Yes, Calvary offers rental options at selected retirement community locations. These rental contracts provide a flexible alternative for those who prefer to rent rather than purchase a right to reside. At other Calvary communities, residents may enter into a long-term arrangement that provides a secure right to reside in their chosen unit or apartment. The type of contract available can vary by location. To find out whether rental contracts are available at a specific Calvary retirement community, please contact our team and we will be happy to provide more information.
When you move into a Calvary Retirement Village, Calvary typically owns the land and, in many cases, the homes within the community. Residents are usually granted a right to reside in their chosen home through a lease or licence agreement, rather than owning the property outright.
In some Calvary communities, different ownership or tenure options may be available, such as leasehold or other approved arrangements. These options can vary from village to village. To understand the specific ownership or contract options available at the Calvary Retirement Village you are considering, we recommend speaking with the Sales Manager who can provide clear and detailed information.
At Calvary retirement communities, exit fees most commonly refer to the Deferred Management Fee (DMF). A contract that includes a DMF allows the management fee to be deferred until after you leave the community.
This can make purchasing a retirement home more affordable upfront, with part of the cost of village living paid at a later time. The amount of the Deferred Management Fee (or exit fee) depends on several factors, including the price of the home, the length of time you live in the community, and whether your contract includes sharing in any capital gains.
Calvary offers a range of contract options, which may vary by location and can include alternatives to traditional DMF arrangements. To learn more about the contracts available at a specific Calvary retirement community, please contact the Sales Manager at your community of interest.
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Ready to learn more?
You can explore our Retirement Living communities or contact us to learn more, discuss your lifestyle preferences, and take the first steps toward retirement living that supports independence, connection and peace of mind.