Financial Comparison of Models

In a KPV village you receive the sale price of your unit, including any capital gain, less a 12.5% – 20% facilities fee and a refurbishment cost. This is in contrast to most villages where you only receive the original buy price of your unit minus a facilities fee of between 20-30%.

In most retirement villages you do not actually buy a unit – you buy a “Licence to Occupy” (LTO) under a legal contract called an “Occupation Right Agreement” (ORA) between the village and the resident. It has much the same effect as buying the unit as you get to live in the unit until you decide to move out.

In a Karaka Pines Village you also buy an LTO but our terms are that we will pay you back the full sale price of the unit less a 12.5% – 20% facilities fee. There is also a cost incurred to refurbish your unit to a near new condition. The resident is financially a lot better off. In the example below the resident, under our Next Generation model, would receive $585,000 rather than $300,000 under the traditional model.


Below is an example of the difference in return you would receive between a KPV Next Generation model and a traditional retirement village model.

House prices in Auckland rose 70% over the four years from 2012 to 2016 ( So, if in 2012 a resident bought a unit (LTO) for $400,000 then upon sale in 2016 the price would have been expected to be $680,000. We have assumed a cost to renovate of $10,000.

Karaka Pines Villages model

Initial buy price: $400,000
LTO Sale Price: $680,000


12.5% Facilities Fee $85,000
Assumed renovation cost $10,000

Total Costs $95,000

Return to the Resident $585,000

Traditional Retirement Village model

Initial buy price: $400,000
LTO Sale Price: $680,000


25% of the initial price $100,000
Capital Gain $280,000

Total Costs $380,000

Return to the Resident $300,000