What else do I need to know?
Outline of the financial terms of an Occupation Right Agreement
An Occupation Right Agreement has become the most popular means of acquiring an interest in a dwelling at a retirement village. An Occupation Right Agreement is not a registerable interest in land; it is a contractual arrangement only and gives a resident the right to occupy a dwelling (a villa or an apartment) at the Village for life, to use the community facilities within the Village and to receive, if necessary, and at your cost, a range of services from Althorp Private Hospital.
When you move into the village you will pay an Entry Payment. You will get an amount equal to the Entry Payment back once you leave the village and your dwelling is re-licensed, less a Village Contribution, which is 30% of the Entry Payment.
The Village Contribution is an amount payable by you for the supply of accommodation and the use of the common facilities. The Village Contribution will be an amount equal to 7.5% per annum for 4 years of the Entry Payment that you made to a maximum of 30%.
By way of an example, if you move into a villa and your Entry Payment payment is $300,000 and you stay in the village for ten years, you will receive back $210,000. If on the other hand you were to leave after 24 months, you will to receive:
| Entry Payment | $300,000 |
| Less village contribution @ 7.5% for 2 yrs | $45,000 |
| Total refunded | $255,000 |
Administration, legal and marketing costs for ongoing village marketing and the relicencing of the dwelling are covered by the 30% village contribution as are refurbishment costs which will take the home back to an as new condition. (Damage over and above normal wear and tear may attract an added cost.)
In addition you will pay weekly payments to cover the village outgoings (such as rates, insurance, rubbish removal, gardening, lawnmowing, repairs and maintenance to the outside of the house, security etc.) This amount is set for cost recovery only, reviewable from time to time to take into account changes in costs and inflation. You will also have to pay for any additional care services that you require.
You will receive back an amount equal to your Entry Payment (less the Village contribution, and if necessary the cost of repairing excessive damage) once the dwelling is re-licensed to a new resident.
Full details concerning the Occupation Right Agreement are set out in a Disclosure Statement for the village. Also available on request is the Code of Residents Rights, the Deed of Supervision between Althorp Village and the Statutory Supervisor, Covenant Trustees.
