Choosing the perfect new home in one of our beautiful Stockland retirement villages is an exciting prospect, giving you living options, facilities and locations to choose from. However, we also want to help you understand the process of moving in. That’s why we’ve prepared this guide to help explain some of the details you’ll want to consider and understand before you take the next step. Our goal is to make sure your moving process is as simple, straightforward and stress-free as possible.
In a nutshell, DMF, or sometimes referred to as an exit fee or departure fee, is a one-off cost which isn’t payable until you leave your retirement village home – helping you offset the cost of retirement living by reducing the initial upfront cost.
DMF is a model used by many retirement living villages across Australia. DMF allows you to defer some of the purchase cost until you leave in order to give you access to more funds during your retirement.
As with most DMF models, the overall cost is based on a clear and defined percentage of the ingoing contribution that is outlined in your contract agreement prior to you moving into your new home, and is calculated based on your upfront contribution and the period of time you stay in the village.
Someone who lives in a retirement village for three years will pay a lesser percentage towards their DMF compared to someone who lives in the village for many more years. The overall fee will depend on the contract type you choose when you move in.
You can review our contract types for more information on the options available.
While some of this is profit, we also reinvest significant funds directly back into your retirement living village to help cover essential costs of operating, upkeep and maintenance, as well as improving the onsite facilities now and in the future.
Rather than charge you a higher price for your new home when you move into a village, we keep the cost lower than the surrounding real estate market by ‘deferring’ that charge until you leave the village. And, it’s important to keep in mind that rather than you (or your estate) having to come up with that fee when you leave, we deduct that from the money you would get from the re-sale of the home.
To give you a clear understanding of how this would be broken down, review our contract types section to see examples of how DMF is calculated based on your chosen contract type and value of your property.
Like all things in a retirement village, the idea behind a Deferred Management Fee is to help you enjoy your retirement life as happily as possible.
Not all DMF schemes are exactly the same. You should always seek independent financial advice when joining a village.
For further information on Stockland’s DMF terms, our retirement villages, or to find out more about our two-week free trial service, visit our Retirement Living section or call us on 1800 72 71 70.
For full terms and conditions relating to the deferred management fee, speak to a Stockland Sales Professional. DMF model does not apply to the Stockland Aspire portfolio.
While every effort is made to provide accurate and complete information, Stockland does not warrant or represent that the information in this article is free from errors or omissions or is suitable for your intended use. Subject to any terms implied by law and which cannot be excluded, Stockland accepts no responsibility for any loss, damage, cost or expense (whether direct or indirect) incurred by you as a result of any error, omission or misrepresentation in information. Stockland reserves the right to change or amend details as circumstances dictate.
This article may refer to features which are not available for all homes or may vary between homes. Stockland recommends you seek independent legal and financial advice before entering into a contract. Published January, 2020.