The actual cost of fees and how the cost of the fees is passed onto residents will vary from retirement village to retirement village.

Before signing up for any retirement village you need to ensure that you have carefully checked the lease and loan agreement and if possible, get your lawyer to also check it over.

What fees might I be paying?

The type of fees you can expect to pay will be fees that go towards the maintenance and improvements within the village including the common areas such as roads, footpaths and recreational facilities. You may also be liable for payments for use of areas such as pools and tennis courts or if your village has one, the golf course.

How are these paid?

Some villages will have arrangements where your fees come off your capital, the payment you made for your home initially. Others will require you pay via other means. It is essential that you check which method applies in your village of choice, particularly if you have a limited income.

Fees can be the deciding factor as to whether a particular retirement village is for you or not so make sure you investigate the fees thoroughly and get an expert to look at your finances.