COSTS & CONTRACTS

Crunching the numbers

Moving In, Living In and Leaving

Although retirement living is designed to be more affordable than owning and maintaining your family home, there are costs to consider. To make things easier for you, we have broken them down into three simple categories. These costs are industry-wide, but there are benefits to choosing Aveo.

If you have any questions, call 1800 957 940 to speak to one of our friendly staff.

1

Moving In

Upfront fees

Occupancy payment

Commonly known as 'entry payment' or 'ingoing contribution', this is the upfront cost you pay in return for your right to live in your Aveo community.

Other costs

In addition to the occupancy payment, a resident may be required to pay legal costs, lease registration costs (including surveyor costs) and other charges payable to any external village trustee. Full details of these costs are contained in the retirement village disclosure statement which is available on request.

Upfront fees

Occupancy payment

Also known as an ‘entry payment’, the occupancy payment is a once-off refundable payment made by a resident to Freedom in return for obtaining the right to live in a home in a Freedom community under the terms of a retirement village contract.

To find the occupancy payment for a particular community, please call 1800 957 940 to speak to one of our friendly staff. 

Other costs

In addition to the occupancy payment, a resident may be required to pay legal costs, lease registration costs (including surveyor costs) and other charges payable to any external village trustee. Full details of these costs are contained in the retirement village disclosure statement which is available on request.

No stamp duty

Residents obtain a right to live in their home in a Freedom community under the terms of a long-term registered lease, therefore residents do not pay stamp duty.

The right to change your mind

21 day cooling-off period

Provided you do not move into your new home in the meantime, you can cancel your retirement village contract within 21 days of signing it without paying any penalties.*

Freedom’s 21 day cooling-off period runs concurrently with any other cooling-off rights you may have that apply to your entry into the Freedom community under the retirement villages legislation that applies in your State.

Settling-in Period – Your Money Back Guarantee

NSW

If you change your mind after moving into your home in a Freedom community, then provided you terminate your retirement village contract within the first 90 days from the date you moved into the community, Freedom will refund your occupancy payment paid to Freedom with no exit fee payable.*

Other States (QLD & VIC)

If you change your mind after moving into your new home in a Freedom community, then provided you terminate your retirement village contract within the first 60 days from the date you moved into the community, Freedom will refund your occupancy payment paid to Freedom with no exit fee payable.*

*Terms and conditions apply. Other costs may be payable.

Upfront fees

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)’.

2

Living in

Service fees

Paid weekly, fortnightly or monthly, these fees are your contribution to day-to-day running costs, including things such as maintenance and management. These fees are set in accordance with State retirement village legislation and can vary between the property and community you choose.

Service fees may contribute to:

Community Staff
Cleaning, maintenance and repair of community area
Maintenance of community gardens
Council rates*
Community activities

Service fees

Residents pay service fees on a weekly, fortnightly or monthly basis as a contribution to the day to day running costs of the Freedom community. The setting of service fees, including the annual budgeting process, occurs in accordance with the retirement villages legislation that applies in the State in which the Freedom community is located.

Service fees vary by Freedom community and can vary by the type of home you choose within a community. Please ask a sales consultant for the service fees that apply to your chosen home in the Freedom community. Details of the services fees payable are also included in the retirement village disclosure material issued to prospective residents.

To find the service fees for a particular community, please call 1800 957 940 to speak to one of our friendly staff.

Services fees cover things such as the costs of:

Community Staff
Day to day maintenance & repair of community areas
Cleaning & gardening of community areas
Council rates
Community activities

Meals fee

In each Freedom community, residents are provided with delicious daily meals. Depending on the community you choose, the costs of these meals are either included as part of the service fees or a separate charge.

At all Freedom communities, the cost of providing meals is charged by Freedom on a cost recovery basis only.

Weekly health and lifestyle fees

The health and well-being of residents is our number one priority. We know that each resident has varying care and support needs. That is why we tailor care and support according to each resident’s individual needs.

Each resident has an individual care plan prepared to meet their needs, identify any goals and help them continue their independence in our Freedom Communities. Residents pay a weekly fee to cover the costs of preparing and administering their care plans, and making the care services available at the community.

Residents at Freedom also enjoy the convenience of regular health assessments and an activities calendar that includes events and classes that are arranged by our friendly Freedom staff.

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.

Accommodation costs

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.

3

Leaving

Management fee

When you move to an Aveo community, you will be charged a Management Fee. This fee, which is one of our only forms of income, allows you to move in and benefit from all the communal facilities, management and services in your community.

Depending on the contract you choose, this fee can be capped at 25% or 35% and is accrued over 2, 3 or 5 years. If you decide to leave your community, it is taken as a deduction when your occupancy payment is refunded.

Capital improvements within the Aveo community
Infrastructure upgrades within the Aveo community
Support of Aveo staff
Facilities provided to the Aveo community

Exit fees

The exit fee (also known as a deferred management fee ‘DMF’ or departure fee) allows a resident to move into a Freedom community and benefit from the communal facilities and management services. The exit fee is deferred and deducted when a resident’s occupancy payment is refunded to them. In essence, residents can enjoy now, and pay later.

The exit fee, which is one of Freedom’s main forms of income, is used to keep our business strong and ensures we can continue to provide the lifestyle our residents enjoy now, and into the future. The exit fee is calculated over the first two years of living in your home in a Freedom community and is capped at 35% of the occupancy payment you have paid. The exit fee may contribute to:

Capital improvements within the Aveo community
Infrastructure upgrades within the Aveo community
Support of Freedom staff
Facilities provided to the Freedom community

No hassles when leaving

No sales commission and marketing costs

You will not be charged any sales commission or marketing costs by Aveo or Aveo Real Estate related to finding a new resident for your home after you leave the Freedom community.

Guaranteed payment timeframes

If a new resident is not found for your home, Freedom will pay you the monies owing to you from your retirement village contract (known as an ‘exit entitlement’) after six or 12 months, depending on the location of your Freedom community. This gives you real peace of mind having the certainty when the exit entitlement will be paid.

No refurbishment costs

Neither you nor your family want to be burdened by any renovations to the home. That’s why when it’s time to find a new resident for your home, Aveo will take care of, and pay for any works that we think are needed to prepare your home for a new resident (this is provided you do not intentionally damage or make changes to your new home).

Financial certainty

Freedom’s retirement village contracts are designed to allow residents to know exactly how much their exit entitlement will be when the time comes to leave the Freedom community. This gives you peace of mind in an uncertain market.

Refundable Accommodation Deposit (RAD)

Any Refundable Accomodation Contribution (RAC) or Refundable Accommodation Deposit (RAD) will be refunded when you leave the Aged Care home, minus any amounts deducted (as agreed).

4

More assurances to benefit you

Our assurances

Money-back guarantee for greater peace of mind

With 94% of residents having voted they are happy living in their Aveo community, we are confident you will love it too. However, our experience tells us that six months is the right amount of time to know if retirement living is right for you. If you decide it’s not for you, we will support you by offering a money-back guarantee for your peace-of-mind.

Repayment guarantee for greater confidence

We understand that if you leave a community, you and your family will have more important things to worry about. The simplicity of our contracts means that if you leave, you will know exactly how much your repayment will be and when you will receive it. We will repay you in full within six or 12 months of leaving your community*.

*Terms and Conditions apply.

No unexpected costs

From the time you move in to the time you leave, we can tell you and your family exactly what your repayment will be. Our contracts are designed to have no unexpected costs. Unlike the residential property market, you won’t have to pay any stamp duty when you move into your new home, and you won’t be exposed to capital loss or property market fluctuations. We also accept full responsibility for any refurbishment, marketing or sales costs if you decide to sell.

 

5

Your choice of retirement village contracts

We are all different with our own needs and personal circumstances. That’s why we offer three unique contract options. Each offer all the assurances of Aveo contracts, and let you enjoy the retirement lifestyle you want today.

Explore Contract Options
Compare to Legislation

Information on this page relates to contract that comprise of a long term lease over the unit between the resident and Aveo.

*In NSW there is a statutory 90 day settling-in period which also applies.

Still have questions?

Book an appointment at your preferred community with our Sales Consultant to sit down with you and run through these together

Explore Communities

1800 316 940