Our simplified contract
Two and a half years ago we embarked on a journey to simplify the finances associated with buying into an Aveo retirement community – we launched our revolutionary Aveo Way contract. This retirement contract was the first of its kind to provide certainty for our residents and their families, giving clarity on all costs associated with buying and living within Aveo communities. Recently we have implemented even more changes to provide further certainty with a 6 month money back guarantee, and a guaranteed sale after 6 months.
The following table shows how the Aveo Way contract compares to legislation in each state:
|Aveo Way contract||QLD Legislation||NSW Legislation||VIC Legislation||SA Legislation||TAS Legislation|
|Cooling off||21 days||14 days||7 business days||3 business days||15 business days||5 business days|
|Money Back Guarantee||6 months (retirement living units)||No guarantee||90 days||No guarantee||90 days||No guarantee|
|Sale Guarantee||6 months (for retirement living units)||18 months||6 months (depending on contract type)||No guarantee||18 months||6 months|
Financial clarity on all fees and charges
We know that moving into an Aveo community is a big decision and you’ll want to understand all costs involved. Watch the video below to learn about our Aveo Way contract, one of the simplest retirement contracts in the market today. The video discusses the financial commitments involved in purchasing an Aveo retirement unit along with ongoing benefits from being an Aveo resident.
The Aveo Way
Deferred Management Fee (DMF)
As with the majority of retirement communities, Aveo charge a Deferred Management Fee. This fee allows us to operate the community and all its facilities now and into the future. Part of the DMF is profit, however, we also reinvest back into the community to pay for communal facilities and capital improvements. It is calculated over your first 3 years of living with Aveo and is capped at 35%. The DMF is not paid until you leave your unit or transfer to another Aveo retirement living option.
The DMF covers:
- Capital improvements and upgrades
- Infrastructure maintenance
- Communal facilities
Similar to the day-to-day costs of living in your own home, a monthly 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 Retirement Villages Act. These monthly fees are for cost recovery only and Aveo does not profit from these fees. Exactly how much this is can depend on which residence or community you choose. Your sales consultant will be able to give you the exact figures.
The Service Fee covers:
- Community staff
- Cleaning of common areas and weekly clean for Serviced Apartments
- Insurance and Council rates
- Activities and community bus^
- Maintenance of common areas
^ Facilities differ between communities.
Aveo Benefits Fee
The Aveo Benefits Fee is currently $1500^ per year (capped to 10 years). Your total fee is paid as a lump sum when you leave the community. If you decide to transfer into another Aveo unit/apartment we will waive the membership fee on the unit you have transferred into. Aveo Benefits provides the following contractual and lifestyle benefits:
No refurbishment costs Neither you nor your family want to be burdened by undertaking a refurbishment when the time comes to leave. That’s why, when it’s time to sell, Aveo will take care of and pay for any upgrades that we think are needed to prepare your property for sale.
No sales commission and marketing costs Unlike traditional real estate sales, you won’t be charged any sales commission for the re-sale of your unit when you choose to sell. We’ll also take care of any marketing costs to help you sell your property.
No exposure to the real estate market As you wont 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.
Guaranteed sale Aveo will guarantee the sale of your property if it doesn’t sell within 6 months of you leaving, giving you real peace of mind.
^Membership fee $1,500 per year, capped at 10 years as a maximum charge. Legal fees incurred are the responsibility of the resident. It also includes any levies payable within the legislative period. Associated fees include resident made good which includes if there are any items damaged beyond fair wear and tear.
Make the move with complete peace of mind
Cooling-off period: If your circumstances change, you can cancel your contract within 21 days of signing without paying any penalties, other than the administration costs that may have been incurred.
Money Back Guarantee*: If you change your mind within 6 months of settling on your unit, or moving in (whichever comes first), we’ll refund the purchase price of your unit. There’ll be no exit fee. All you’ll have to pay for is the Service Fees while you’ve been living at the village and any legal costs and utilities.
Take a look at the video below, it will explain our Money Back Guarantee* in more detail.
*The Money Back Guarantee is subject to particular timeframes regarding sale and repayment, as well as other terms and conditions. These terms and conditions are outlined in full in our retirement village contracts, which are available upon request. For retirement units, the Money Back Guarantee is only applicable when purchased under an Aveo Way contract. For more details, speak to your sales consultant.