Independent living in an IRT retirement village is an affordable choice for a great life.
At IRT, we want to make it as easy as possible to understand the costs involved with living in a retirement village. It’s worth taking the time to understand how it all works, and we’re here to help each step of the way.
All retirement villages have various costs, aside from the cost of your new home. However, you’re buying more than a new home, you’re buying a lifestyle and peace of mind that comes with taking care of your needs – now and into the future.
You can think of the costs in three easy-to-understand stages.
Before moving in, you pay a lump sum or ingoing contribution, which represents the purchase price of your new home. This gives you the right to reside in your villa or apartment in accordance with your residence contract.
Recurrent charges are essentially service fees that village residents pay to cover the cost of operating and maintaining the village. They’re paid either fortnightly or monthly, depending upon the village, and cover things such as:
Providers are not legally allowed to make a profit from these contributions and they are calculated based on actual day-to-day operating costs required to run the village.
You may choose a purchase option which enables you to reduce the amount of the ingoing contribution by agreeing to pay a fee when you leave. This departure fee is only payable when you permanently vacate your home, which means you retain more of your money to support your lifestyle while you live at the village.
The departure fee amount will depend upon the pricing option you chose when you entered the village, so it’s best to talk to the village sales consultant for specific details.
We understand that everyone’s financial situation is different, so we offer flexible pricing options, whether you’re looking for a more affordable entry price or a higher refund later. Here’s a simple breakdown of your options, with real-life examples to help you decide.
You pay a lower ingoing contribution when you move in, and that amount is not refunded when you leave. It’s a bit like paying rent upfront in a lump sum.
Those looking for a more affordable upfront cost and who don’t need the contribution refunded later.
Jenny, 74, wanted to free up funds to enjoy her retirement. She chose this option to pay less upfront and use the savings to travel and spend time with her grandchildren. She paid $500,000 and stayed 15 years, She knew there wouldn’t be a refund later, but felt it gave her more financial freedom now.
Your ingoing contribution is partially refundable. A departure fee of 5% per year (based on your initial contribution) is deducted for up to 6 years. If you stay for 6 years or more, you’ll get 70% of your contribution back.
Those who want a balance between a moderate upfront payment and receiving a substantial refund in the future. The earlier you leave, the lower the departure fee, making this a good option for those who want flexibility.
George and Margaret moved into an IRT apartment with this option. They paid $700,000 upfront. After 6 years, they decided to move closer to family. They received $490,000 back, which helped fund their next move.
If they had decided to leave earlier - say, after 3 years - 15% (3 x 5%) of their initial contribution would have been deducted and they’d receive $595,000 back.
Similar to Option 2, but with a smaller departure fee of just 2.5% per year (up to 6 years). That means if you stay 6 years or more, you’ll receive 85% of your original contribution back.
Those who can afford a slightly higher upfront cost and want more of it back later.
Rob chose this option and paid $850,000 to move into an IRT villa. After 7 years, he decided to transition into residential aged care. He received $722,500 back, which supported his next phase of care.
If Rob had left after 2 years instead, 5% (2 x 2.5%) would have been deducted from his original payment, and he would have received $807,500 back.
You pay a higher ingoing contribution when you move in, but you’ll receive 100% of it back when you leave.
Those who want the full amount of their contribution returned to their estate or for future needs.
Diane was focused on preserving her estate for her children. She paid $1,000,000 to move in, knowing that every dollar would be returned to her or her family when she left IRT. This gave her peace of mind and financial certainty.
* These payment options are examples only and differ from village to village.
We’re here to help you understand your options and make the right decision for your lifestyle and budget. Call our friendly team today on 134 478.
Residence rights differ between states and territories, but most providers offer long-term residence rights via lease or licence.
This gives you the right to occupy the home for as long as you like, without having to purchase the property and pay stamp duty.
Residence contracts differ from village to village, so talk to our team to find out more and be sure to get independent legal advice.
Exit fees are payable with this option. When you leave IRT the ingoing contribution will be refunded, less the exit fee. This fee is calculated on a daily basis at a rate of 5% p.a. of the ingoing contribution for a maximum of 7 years. If you stay for 7 years or longer, the refund will be 65% of the ingoing contribution.
Exit fees are payable with this option. When you leave IRT the ingoing contribution will be refunded, less the exit fee. This fee is calculated on a daily basis at a rate of 2.5% p.a. of the ingoing contribution for a maximum of 7 years. If you stay for 7 years or longer, the refund will be 82.5% of the ingoing contribution.
The full amount of this contribution will be refunded on departure from IRT.
* These payment options are examples only and differ from village to village.
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