Deferred Fee on Exit Price

The practice of a Retirement Village Deferred Management Fee calculated on the exit price can be harmful to retirement village residents without maximum capital gain protection. This practice along with inflation has the capacity to decimate the capital base of an outgoing resident and can mean the difference between a nursing home place of choice or a federal government funded placement. There is the potential for a long term retirement village resident without capital gain protection to lose an ever increasing portion of their in-going amount. – for further details see -  Retirement Village Deferred Fee .

There is currently no legislative protection against consumers being required to sign a lease contract where the so called ‘deferred fee’ is calculated on the exit price but the village operator, not the resident, receives the capital gain in the value of the unit over time.