FREQUENTLY ASKED QUESTIONS
How does the village work?
Karaka Lifestyle Estate’s aim is for you to be better off in every way. We give you both time and financial freedom.
How do we do that?
Financial Freedom: We provide financial freedom through giving you the capital gain from the sale of your unit. If your unit rises in value then you – not the village operator – gain the benefit of that, leaving you with the financial ability to make choices.
Knowing you get to keep most of the sale price of your unit, and not lose all the capital gain, you can relax and enjoy village life. Also, the facilities fee charged by Karaka Lifestyle Estate is 12.5% instead of the 20-30% charged by other villages.
We also remove the worry caused by the problems and responsibilities of home ownership, giving you the time and space to enjoy life. You can take part in the many community groups in the village or use the great facilities and amenities on offer within and around the village.
How does this financial model differ from the norm?
In most retirement villages you will lose between 20 and 30% of the purchase price of the unit, and if the value of the unit rises over time you will receive none of this increase in value. These deductions provide a profit to the owner of the village and not to you or your family. By comparison the facilities fee at Karaka Lifestyle Estate is 12.5% of the sale price of your unit. If you wish to pay this upon purchase we will discount the fee to 10% of the purchase price. This is a significantly reduced fee and you get the all the capital gain.
There is no need to sell through a Real Estate Agent as the Village Manager can handle this for you, although the choice is still yours. The Village Manager will not charge a commission to sell your unit – only the costs of advertising and marketing.
The only legal fees incurred will be for your use of your own lawyer.
What other fees/costs will we incur?
You are required to pay for your own utilities and telecommunications.
Our weekly fee to cover the costs of running the village is $165 p.w., please be aware this is reviewed yearly to ensure it covers the cost of running the village and thus it is likely to increase over time, however if you prefer we can fix this for life at $100 per week in conjunction with a 25% facilities fee. Please talk to us if you prefer a fixed weekly fee.
The only other fees payable to the village are a cost to upgrade your unit prior to selling.
Refurbishment is important in a village environment for the village to be maintained to a high standard. The more appealing the village is to other people, the more valuable the units in the village will be. The village Manager will take care of keeping the grounds and facilities maintained to a high standard, but you will need to play a part in this, in the way that your unit is presented. The refurbishment requirement is necessary so that every unit that becomes available for sale is presented to the highest standard possible. The unit needs to be in a near new condition. You or your family do receive the benefit of this through a higher selling price..
How is the Village Weekly fee set?
The Village Weekly fee is set based on the property running costs. At Karaka Lifestyle Estate, all of these costs have to be paid for by the Residents of the village. The fees are currently set at $165 p.w.. These will be reviewed each year and set according to any changes in actual running costs.
The Weekly Fee includes:
- Land Rates
- Full replacement Insurance
- Rubbish Collection
- Gardening & lawns
- Repairs & Maintenance
- Village security and lighting
- External window washing
- Management costs
- Legal compliance required by the Retirement Villages Act
- A long term sinking fund to cover major village renovation costs