Once you have decided to explore village living, you will likely consider several options. Not all villages are equal, and not all ORAs are the same.
Look beyond the facilities
Villages compete on amenities. The bowling green, pool, and restaurant matter for your lifestyle. But when it comes to the legal commitment, the ORA terms matter more.
Two villages with similar facilities can have very different financial outcomes for residents. One might retain 25% of your capital; another might retain 35%. One might share capital gains; another might keep them entirely.
Key questions to ask each village
- 1. What is the Deferred Management Fee and how is it calculated?
- 2. How are weekly fees set and what is the mechanism for increases?
- 3. What happens to my capital if property values change?
- 4. How long does it take for departing residents to receive their refund?
- 5. How long until all village units are built?
- 6. What happens if I need to move to hospital-level care?
- 7. What is the financial position of the operator?
Be wary of verbal assurances
Village staff may tell you things that are not in the written agreement. The agreement is what binds you. If something important is only promised verbally, ask for it in writing or assume it does not apply.
What Carlile Dowling does at this stage
If you are comparing villages, we can:
- • Review and compare the ORAs from different operators
- • Model the financial outcomes under different scenarios
- • Identify terms that are more or less favourable than typical
- • Help you understand what is negotiable (rarely much, but sometimes)
Taking your time
There is no rush. Villages may create urgency around specific units, but there will always be other options. A decision this significant deserves proper consideration.
Review the disclosure statement
Villages must provide a disclosure statement containing key information. We can help you understand this document and compare villages.
We can review disclosure statements and explain the differences. Contact us on 06 835 7394.