Benefits of funding options in Retirement Villages
Many Retirement Villages are now offering ‘funding options’, allowing you to make a choice of how much you pay for your Accommodation upfront. This is called the Entry Contribution. The Entry Contribution changes the amount you receive back when you decide to leave the Retirement Village. In most cases, it is the sale price less Deferred Management Fee & adjustment for any capital growth (if offered).
These funding options can have a profound impact on any Pension entitlement you may receive & significant difference in your cashflow (total income compared to total expenditure). The Age Pension is extremely powerful at present (due to the low interest rate environment). The more pension you can received, the better your cashflow can be.
If you or someone you know is considering buying into a Retirement Village, ask the operator of the Retirement Village if they have different funding options available and what are the criteria for each option. With those options, consider making an appointment to see one of our specialists for a Retirement Village Plan.
Balance Retirement & Aged Care Specialists can help you to understand exactly how the funding options will work in your case & determine which option delivers the best outcome for you. We can also compare different villages from a financial perspective, so you can see which one is better financially, rather than simply comparing the physical features of different villages.