As you research villages to choose where you might want to live you’ll find a large variety in the choices offered.
The differences come down to two fundamental choices: Firstly do you benefit from the the capital gain upon sale of your retirement home and secondly does the village take care of any concerns by having management on site to run the village and look after issues that arise.
Most villages, including Karaka Pines Villages, will be registered under the Retirement Villages Act although there are some that are not. The Act has been created to provide substantial protections to village residents.
Under the Act the contract for a unit is called an “Occupation Right Agreement” or ORA. These are commonly known as a Licence to Occupy or LTO. It has much the same effect as buying a house as you get to live in the unit until you decide to move out, you decide the selling price and you get the substantial protections that the Act provides. The terms of these contracts vary by village. The large operators all provide full service but under their terms upon sale you will only receive what you originally paid minus a 20 to 30% fee. This amounts to a large loss of savings.
In a Karaka Pines Village Next Generation model upon sale you receive the selling price of your unit less a 12.5% – 20% facilities fee and a refurbishment cost. In most situations this results in a far greater return to the resident as shown in the financial comparison of the models.
There are also many operators who essentially build apartment blocks or villages aimed at those in retirement but that operate under a body corporate scheme. In these villages you are responsible for the running of the body corporate with all the politics and issues that arise in such entities. Often these operators are new to village design and do not understand the subtleties associated with design to make life easier as you get older.
In a KPV village you get all the benefits of home ownership without the worries. Thus, you retain most of the value of the sale of the ORA plus you get to live in a fully serviced village. You can relax with village management taking care of repairs and maintenance to your home, looking after the gardens and lawn mowing, providing security and lighting, washing windows and removing the rubbish. Our aim is to make your life easier, and you get the financial freedom that comes with retaining and building on your equity.
We also believe there is a further, less tangible but no less important, difference. That is in the way we regard our residents and the respect we give them. We will treat you as a home owner and not a tenant.