We’ve put together a short video explaining the differences between our Peace of Mind and Capital Share contract options. You can also find more information in the FAQs below.
Here are the answers to some of the most frequently asked questions about contract types. To ensure you make the best choice, we always recommend incoming residents consult independent legal and financial advice before entering into a contract.
Our two contract types – Peace of Mind and Capital Share – provide options that can result in different outcomes if there are changes in the local property market.
With the Peace of Mind contract, all costs are clear in advance. With the Capital Share contract, you won’t know the exact costs you may incur – or capital gains you may share in – until you depart.
We’ve outlined the differences in the following table:
|Option 1 - Peace of Mind||Option 2 - Capital Share|
|Stamp duty||✗ (except for freehold-title homes)||✗ (except for freehold-title homes)|
|Deferred Management Fee||✔ 5% per annum over 5 years (max. 25%)||✔ 5% per annum over 7 years (max. 35%)|
|Reinstate/renovation costs (state by state dependant)||✗ (except beyond fair wear and tear)||✔ resident contribution dependant on works required|
|Capital gain/loss||✗ 0%||✔ 50%|
|Sales/admin costs (unless a 3rd party sales agent is appointed)||✗ Nil||✗ Nil|
|Re-payment timing after departure guarantee^||6 months||18 months|
|Benefits||✔ Provides a clear picture of expenses when selling the home|
✔ Financial security - know exactly what costs you incur upon leaving the village; can plan for next steps accordingly whether it be aged care or children's inheritance.
✔ More attractive for the risk averse customer
|✔ Share in captial gains|
✔ Good option if purchasing in an area where you expect property prices to grow
|Things to consider|
The figures referred to in the table above apply to Independent Living Units (ILUs) and may indicate features which may differ or 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.
With both the Peace of Mind and Capital Share contract options, Stamp Duty only applies to freehold-title homes. This means you don’t have to factor for a significant extra expense.
The DMF is a one-off departure fee you pay when leaving the village. It helps reduce the purchase price when you move in, allowing you more money to enjoy your freedom. The DMF is lower under the Peace of Mind contract than under the Capital Share contract.
The SDG ensures you will be repaid the selling price of your home from when you have left the village – even if your home hasn’t been sold.
The SDG is paid after a maximum of six months from when you leave under our Peace of Mind contract, and a maximum of 18 months from when you leave under our Capital Share contract.
There are no renovation or refurbishment costs (except beyond fair wear and tear) under the Peace of Mind contract.
Under the Capital Share contract, you may have to contribute towards these costs before your home goes on the market. However, this is not an additional out-of-pocket cost as it comes off what you are paid when your home is resold.
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