Retirement Village Communal Facilities Costs

The illusion of the costs of the communal facilities as presented by retirement village operators.

Retirement Village Communal Facilities Costs - The deferred management fee is often quoted by operators to prospective residents as the necessary mechanism for the purpose of paying for the communal facilities within the village. What retirement village operators don't quote is the total value of deferred management fees gained in order to recoup the cost of construction of these communal facilities. Maintenance of these facilities is paid for by the residents on top of the original deferred management fee charged.

In the example below Table 3 shows that over 4 x 7 year occupancy periods the operator received a total of $805,200.00 in deferred fee payments for just one unit within the village. In just the first occupancy period for a village of 100 units in this example there would be $15m received to recoup the initial cost of the communal facilities, a whopping $80.52m over the 4 x 7 year cycles in just one village of just 100 units.

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