In a Karaka Pines Village there are three fees. Firstly a fee for providing the facilities of between 12.5% and 25% (varies by village and choice of fee), secondly a weekly fee for running the village and finally a fee for renovating your unit.
Village Facility Fee
At Karaka Pines Villages the facility fee will be 12.5% – 20% of the sale price of your unit when you leave. This is in contrast with traditional retirement villages where they charge you 20-30% of the buy price of your unit and also take all the increase in the unit’s price over the time you are in the village.
Residents pay a weekly fee covering all aspects of running the village, the rates and insurance, maintenance, management, rubbish, communal power and overall upkeep. This includes a long term maintenance fund that ensures all big costs are covered so you won’t get a financial shock in the future. The weekly fee varies by village and unit but a guide would be in the order of $145.00 – $165.00.
In some villages there is an option to fix this fee at $100.00 per week, with the associated facilities fee being 25% of the sale price.
Refurbishment is important in a village environment for the village to be maintained to a high standard. The more appealing the entire village is to other people, the more valuable the units in the village will become. The Village itself will take care of keeping the grounds and facilities maintained to a high standard, but you will need to play a part in this, in the way that your unit is presented.
The refurbishment requirement is necessary so that every unit that becomes available for sale is presented to the highest standard possible. The unit needs to be in a near new condition. You or your family do receive the benefit of this through a higher selling price.
You are required to pay for your own utilities and telecommunications.
When the time comes to leave your unit the village management can sell it on your behalf. This may incur an administration fee and you will incur the cost of marketing and advertising. You get to set the selling price. You may incur legal fees from the personal use of your lawyer.