Cost of living in Arvida Retirement Villages
Choosing a retirement village is a significant decision, influenced not only by the quality of life and care but also by the cost of living in such communities. Arvida Retirement Villages, renowned for their holistic approach to senior living across New Zealand, offer a blend of comfort, community, and personalised care. This introduction delves into the financial aspects of joining the Arvida family, providing potential residents and their families with a clear understanding of what to expect in terms of financial commitment.
The villages boast a range of amenities and activities, all designed to support the well-being and independence of residents. But what are the costs associated with this premium living experience? From entry fees to ongoing charges and the financial models Arvida employs, below we aim to make it clear the costs of living in an Arvida Retirement Village.
Understanding the financial implications is crucial for making an informed decision about retirement living. As such, this article will provide an in-depth look at the entry costs, weekly fees, and any additional charges that may arise, ensuring readers have all the information they need to navigate the financial journey of moving into an Arvida Retirement Village. Whether you’re planning for yourself or a loved one, this guide will help illuminate the path to choosing a retirement village that aligns with your financial expectations and lifestyle aspirations.
The entry costs at Arvida Retirement Villages are primarily centered around the purchase price of a licence to occupy. This price varies widely depending on the location of the village, the type of accommodation chosen (e.g., apartment, townhouse, or serviced apartment), and the specific amenities and services provided. The licence to occupy grants the resident the right to live in the property but does not convey ownership of the property itself.
Example Entry Cost: While specific numbers will vary by location and unit type, entry costs into a Arvida Retirement Village can range from approximately NZ$375,000 for the lowest cost one-bedroom apartment to over NZ$1,345,000 for premium accommodation options.
It’s important to note that these figures are indicative and subject to change. Potential residents should consult directly with Arvida Retirement Villages for the most current and accurate pricing based on their preferred village and living arrangements.
The Deferred Management Fee (DMF) at Arvida Retirement Village is a fee that residents pay when they leave the village, and it’s deducted from the resale price of their unit.
The DMF is calculated as a percentage of the original purchase price or the sale price of the unit, whichever is higher, and is usually capped at a maximum percentage. This percentage normally will accumulate over the first few years until it reaches the cap. For example Arvida typically have a DMF of 30% of the original purchase price, accruing over the first four years of residency.
It’s important to note that the specifics of the DMF, including the percentage rate, the cap, and the accrual period, can vary between different Arvida villages or different contracts within the same village. Therefore, prospective residents should consult the specific terms and conditions outlined in their contract with Arvida Retirement Village for precise details.
No. Arvida villa and apartment weekly fees are fixed for life, regardless of any changes to Arvida’s operating costs. Please check your terms and conditions.
Arvida weekly fee and the DMF stop as soon as you permanently move out of your home (known as vacant possession)
Arvida Retirement Villages sales or refurbishment efforts related to the resale of your apartment or townhouse. This is all covered by the DMF.
Please verify with your contract.
Arvida says they make this easy and minimal cost, but please check your contract.
Arvida mentions that you and your family will have certainty about the amount you are paid when you leave the village. You will not be exposed to any capital loss when the apartment or townhouse is on-sold.
Within 6 months of leaving you will receive the original price you paid for the unit minus the deferred management fee. Remember you don’t get the capital gains from the sale.
Calculating the total cost of living in Arvida retirement village
Below is a calculator designed to help potential Arvida residents compare the costs of living in a Arvida Retirement Village compared to living in your own home. By inputting key financial data such as the entry fee, weekly fees, and the estimated length of stay, users can get a clear picture of the total costs associated with each option. It shows the long term impact of living in a Arvida retirement village. This tool is particularly useful for evaluating how different fee structures and DMF policies impact the overall financial commitment to a retirement village. If you need more information, explore financial guides for all retirement villages.
In conclusion, navigating the financial aspects of moving into an Arvida Retirement Village requires a clear understanding of the various costs involved, from entry fees to ongoing charges and potential additional expenses. The value offered by Arvida goes beyond mere numbers, encompassing a holistic approach to retirement living that prioritises well-being, community, and personalised care. Another couple of retirement villages to consider are Metlifecare or Ryman. Learn more about the cost of living at Metlifecare here and Ryman here.