Costs & Contracts
It's an exciting time in your life and we want to help you make the most of it. We also understand that moving to retirement or aged care is an important decision, one that you want to make with complete confidence, knowing it’s the right one for you.
Just like purchasing any residential property, there are moving in costs such as a purchase price, legal fees and a cooling off period.
Commonly known as purchase price or ingoing contribution, this is the one-off refundable payment you make to secure your right to live in an Aveo community.
There may be other fees which might include legal, trustee, registration and survey fees.
No stamp duty
Unlike purchasing a freehold residential property, you will not have to pay any stamp duty on your Aveo unit.
Settling in Assurance
While so many Australians love calling our friendly communities home, we want you to take the time to make sure this is the right decision for you.
21 day cooling-off period
You can cancel your contract within 21 days of signing without paying any penalties unless you waive your additional cooling-off period by settling or taking occupation of your unit.
Money Back Guarantee
If you change your mind within 3 or 6 months of settling on your unit, we’ll refund the entry payment of your unit. There’ll be no exit fees.
The Money Back Guarantee is subject to particular time frames regarding sale and repayment, as well as other terms and conditions. These terms and conditions are outlined in full in our contracts, which are available upon request. Refund will be paid within 75 days of vacant possession (unless required sooner by legislation).
Refundable Accommodation Deposit (RAD)
A lump sum payment for accommodation in an aged care home. This is the price of a room (single occupancy), in lump sum form, that residents have agreed with their aged care home to pay.
Residents can pay their accommodation price in full by RAD or they can pay via combination of a smaller RAD and Daily Accommodation Payment (DAP) or they can pay in full by DAP.
If the residents and their aged care home agree, the resident can ask their provider to deduct certain amounts from the lump sum they have paid – for example for care fees.
Refundable Accommodation Contribution (RAC)
If you are eligible for a contribution by the Australian Government for payment towards your accommodation in an aged care home, this lump-sum is called a ‘Refundable Accommodation Contribution (RAC)’.
Similar to regular home ownership, there are day-to-day running costs, maintenance and repairs, insurance and council rates etc
Similar to the day-to-day costs of living in your own home, a regular fee applies to live in your new retirement unit. It funds the day-to-day running costs of the community and is determined in line with the relevant Retirement Villages Act. Exactly how much this is can depend on which residence and community you choose. Your sales consultant will be able to give you the exact figures. The service fee covers things such as:
*Residents are responsible for their own insurance under Aveo contract.
Basic daily fee (85% aged care pension)
This covers living costs such as meals, power, cleaning and laundry.
Means-tested care fee
This is worked out by the Department of Human Services, based on your financial situation and is a contribution towards the cost of your care.
Some people will have their accommodation costs paid in full or in part by the Australian Government, while others will need to pay the accommodation price agreed with the aged care home.
The Department of Human Services will tell you which applies to you based on an assessment of your income and assets.
Daily Accommodation Payment (DAP)
The daily payment for accommodation in an aged care home. The aged care home will work out the DAP based on a legislated formula that converts the RAD price to a DAP price.
The resident makes this payment on a regular basis, up to a month in advance. The DAP is not refunded when the resident leaves the aged care home or decides to pay a RAD.
The resident can choose to pay a combination of a RAD and a DAP for their accommodation costs. The resident can request the DAP to be deducted from any RAD they have paid.
Daily Accommodation Contribution (DAC)
The daily contribution for accommodation in an aged care home that residents would need to pay, if they also receive Australian Government assistance with their accommodation costs.
Residents make this contribution on a regular basis, up to a month in advance. The DAC is not refunded when the resident leaves the aged care home or decides to pay a RAC.
Residents can choose to pay a combination of a RAC and a DAC for their accommodation costs.
When it comes time to sell, there are unique costs and benefits that are different to selling a normal residential property.
Deferred Management Fee (DMF)
The Deferred Management Fee [DMF] allows the resident to move into a retirement community and benefit from the communal facilities, management and services, all at a lower entry price than would otherwise be possible. The fee is deferred and deducted when the resident sells the unit, or transfers to another Aveo retirement or aged care living option. In essence, residents can enjoy now, and pay later.
The DMF, which is one of our only forms of income, is used to keep our business strong, and ensures we can continue to provide the level of lifestyle our residents enjoy now, and into the future. Depending on the contract you choose it is calculated over your first 2, 3 or 5 years of living with Aveo and is capped at 25% or 35% . The DMF may contribute to:
The Membership Fee only applies to our Certainty option. This fee of $2,000 per annum is only paid when you leave your unit or apartment. This membership fee allows you access to certain transfer options. See our Contracts page for further details of the transfer options available.
No hassles when leaving
No sales commission and marketing costs
Unlike traditional real estate agencies, you won’t be charged any sales commission or marketing costs related to the re-sale of your unit (this option is only available if you appoint Aveo Real Estate to sell your unit/apartment).
Aveo will guarantee the sale of your property if it doesn’t sell within 6 or 12 months (depending on your contract type), giving you real peace of mind where its not already covered by legislation.
No refurbishment costs
Neither you nor your family want to be burdened by undertaking the works when the time comes to leave. That’s why, when it’s time to sell, Aveo will take care of, and pay for, any works that we think are needed to prepare your property for sale (this is provided you do not intentionally damage or make changes to the property).
No exposure to the real estate market
As you won’t be exposed to the fluctuations in the market, we can tell you and your family exactly what you will receive when your property is sold, offering peace of mind in an uncertain property market.