Retirement Living Financials Explained (WA)

Lease for Life Agreements

Lease for Life Agreements grant you exclusive rights to occupy your unit for your lifetime from the lease commencement date. A Lease for Life Licence Agreement provides greater flexibility than traditional home ownership and offers the following benefits:

• No Stamp Duty payable
• You can free up your cash for lifestyle choices
• The right to use all common areas and facilities within the village

A Lease for Life Agreement is terminated when the last occupying resident on the lease vacates and the unit settles. It will then need to be sold and cannot be left in an estate or in a will to a family member.

Costs and fees associated with Lease for Life Agreements include the following:

• Entry Payment (also known as an Ingoing Contribution), which guarantees you the right to live in your home.
• Recurrent Fees (either fortnightly or monthly), which generally cover:
  • Water rates
  • Building insurance
  • Home maintenance (such as annual RCD testing, termite inspection and gutter cleaning)
  • Gardening in common areas
  • Upkeep of any shared facilities 
  • Rubbish collection
  • Cost of any village staff
• Deferred Management Fee (DMF), which is calculated daily on exit as described to a maximum of 25% capped at 5 years based on original entry price plus capital growth. *
• Reserve Fund, which is calculated as 1% per annum capped at 5 years based on ingoing price plus capital growth. *

*Excludes Silver Vines and Riverside Village, which both have an upfront/non-refundable DMF option of 18% and a major reserve contribution of 4%.

Rental Agreements

Rental Agreements allow you can pay to live in your unit per fortnight. The benefits of a Rental Agreement include the following:

• Not being locked into a long-term lease
• Lower upfront costs
• Avoiding interest rates 

Costs and fees associated with Rental Agreements include the following:

• Entry Bond
• Recurrent Fees (either fortnightly or monthly), which generally cover: 
  • Water rates
  • Building insurance
  • Home maintenance (such as annual RCD testing, termite inspection and gutter cleaning) 
  • Gardening in common areas
  • Upkeep of any shared facilities 
  • Rubbish collection
  • Cost of any village staff 

All rentals are legislated under the Western Australia Retirement Villages Act 1992, and require a current Centrelink/DVA Income and Asset Statement to be submitted with your application.

Financial Agreements per Village

BaptistCare villages that are a joint venture with the Department of Communities are subject to strict eligibility criteria.