Comparison of our next-generation model to the industry standard
Part 1 Comparison of terms
| Karaka Pines - Next Generation Model | Industry Standard | |
|---|---|---|
|
Capital Gains |
Belong to the resident |
Are retained by the Village operator |
|
Facilities Fee |
Options given to residents: - Upon the sale of your unit, where you set the sale price, either 12.5% OR 25% of the sale price. |
Range from: - 20% to 30% of the purchase price - The fees are deducted from the entry price |
|
Weekly Fee |
Options given to residents: a) Standard: Covers all Village operating costs, staff, rates, insurance, maintenance, and legal. Prices vary by village and change over time as costs rise. To find out more please contact us. b) Fixed Fee: A fixed fee for life choice is available. This option means your fee’s will not increase throughout your time in the village. Electing this option incurs a 25% facilities fee. |
Range from: |
|
Refurbishment of Units |
Is the responsibility of the resident. Must be restored to "as new condition". KPV undertakes this on behalf of the resident and deducts this from the sale proceeds. The resident gains all the benefit from the increase in the sale price. |
Is the responsibility of the Village operator. The Operator benefits from the increase in the sale price.
|
|
Village Maintenance Renovation Fund |
Village maintenance is the responsibility of the operator and this cost is included in weekly fees. |
Is not compulsorily required and provided from the Village operating cashflows |
Part 2 Financial comparison (A real financial comparison - having spent 6.7 years in a village.)
| Karaka Pines - Next Generation Model | Industry Standard | |
|---|---|---|
|
Purchase (2011) |
$445,000 |
$445,000 |
|
Sell Price (2020) |
$785,000 |
$785,000 |
|
Facilities Fees |
Options given to residents: a) Standard: 12.5% of sell price paid at the end = $98,125 b) Fixed outgoings: 25% of sell price paid at the end = $196,250 |
Range from: 20% = $89,000 30% = $133,500 |
|
Capital Gain Lost |
Nil |
$340,000 |
|
Refurbishment of Units |
Is the responsibility of the resident, must be restored to "as New Condition" Actual cost more like $35,000 |
Nil |
|
Balance Paid to Resident on Exit |
Sale Price – DMF - Refurbishment a) Standard: $651,875 b) Fixed fee: $553,750 |
Buy Price- DMF 20% $356,000 30% $311,500 |
|
Total Cost Over Life in the Village for Resident |
a) Standard: $200,985 b) Fixed fee: $278,050 |
20% Not fixed $496,860 20% Fixed $475,800 30% Not fixed $541,360 30% Fixed $520,300 |
An example of how capital gained worked for our residents.
“David and Anne* bought at a Karaka Pines Village in 2012 for $435K. In 2019 David needed to move into a care facility. So they sold their home for $727,500 and spent $636,500 on a serviced apartment at the care facility for Anne, leaving them enough to pay for David’s care.
If they’d been living at a village operating under the standard model, they would have ended up with only $304,000. Anne would not have been able to afford to move to be with David.”
*Names changed to protect their privacy.
You Have So Much More to Gain
Get in touch with one of our friendly team now to learn how you could be so much better off living at a Karaka Pines Village.
