At TriCare, we believe in transparency and fairness when it comes to your financial wellbeing.
Retirement villages operate very differently to the residential property that you may be familiar with. For starters, you buy a “right” to occupy your unit in the form of a long-term lease. To buy this lease, you pay the lease sale price, also known as an “ingoing contribution”. Your ingoing contribution is like a bond, which is refunded when you leave, less a deferred management fee or DMF.
Although it sounds complex, buying a lease in a retirement village has many advantages for residents as follows,
- No stamp duty on purchase: Lower transaction costs compared with a residential property purchase.
- No renovation costs when you leave: We cover all renovation expenses when it is time to move on – ensuring a smooth transition with no extra costs.
- No real estate agent selling commissions:When you leave the village, we re-sell the lease on your behalf with no additional fees or charges.
- No exposure to market ups and downs: We refund your lease purchase price less the DMF, removing any risk to you of fluctuations in price.
Deferred Management Fee (DMF)
The DMF is calculated as a small percentage of your lease purchase price, accrued while you reside in the village community. The DMF is charged to help cover the costs of replacing the village’s facilities and infrastructure, and to provide a return to our shareholders.
At TriCare, our DMF accrues at just 3.5% of your ingoing contribution annually.
The DMF is only paid after you exit the village and we re-sell your lease. The fee is deducted from your ingoing contribution before it is refunded back to you.
Retirement Village Fees
TriCare Retirement Living Communities are resident-funded, which means that the costs of administering, operating and maintaining the village are met by the service fees payable by all residents.
| Weekly fees | Included |
| All management and administration | Yes |
| All common area repair and maintenance | Yes |
| 24-hour emergency response system | Yes |
| Insurance (buildings and public liability) | Yes |
| Community electricity, water and gas | Yes |
| Lawn mowing and gardening | Yes |
| Rubbish removal and recycling | Yes |
| Common area pest control | Yes |
| Government rates and charges | Yes |
| Minor repairs and maintenance to residents’ homes | Yes |
| Maintenance Reserve Fund Contribution | Yes |
| Home and contents insurance | No |
| Home electricity usage | No |
| Gas bottle refills | No |
Your buy-back guarantee
To assist peace of mind, we offer an 18-month buy-back guarantee on your unit. If your unit doesn’t sell within 18 months of you vacating, we’ll purchase it ourselves. Plus, to ease your financial burden during the transition period, we reduce your weekly fees after 90 days from your move-out date and cease them entirely after 9 months.
To find out more about our vibrant and close-knit communities click here or below.
