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On leaving Bellerive
Although moving to a community like Bellerive should primarily be
considered as an investment in your lifestyle, it is also important to
consider the financial implications.
Most retirement communities like Bellerive will charge you an Exit
Fee, Departure Fee or Deferred Management Fee. This could either be
a percentage of the initial Purchase Price and a share of the Capital
Gain or a percentage of the resale price. There are also other models
used by operators, but most are based on these principles.
At Bellerive we charge a Departure Fee as a percentage of the
resale price. The Departure Fee is calculated at 6% per annum for
the first 6 years of occupation, i.e. a maximum of 36% after 6 years
(calculated daily).
This is expressed in the contract as a refund of the Loan Amount and
the payment of a Termination Payment, whereby the Termination
Payment is the difference between any Capital Gain
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and the
Departure Fee. Subject to the Capital Gain, the Termination Payment
can be a negative amount.
The Rent and the Licence Fee are not refundable. You may also
be liable for any Recurrent Charges, even if you have vacated your
home. You may also be liable for making good any alterations or
modifications made to your home and any damage beyond ‘fair
wear and tear’.
The graph opposite shows the Departure Fee option of Bellerive
compared with some of the current Departure Fee structures used
elsewhere in the ACT. The example assumes a compound annual
growth rate of 4.5%, which is in line with the compound annual
house price growth in the ACT of the last 10 years.
Financial information
(cont)
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The Capital Gain could be a negative number if property values fall (ie the selling price is lower than
the purchase price).
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