Financial Cost of living in Summerset Group Retirement Villages
Understanding the financial aspects of retirement living is crucial for making an informed decision about your future home. This article aims to shed light on the costs associated with living in a Summerset retirement village, providing clarity on financial commitments, options, and how these compare to other retirement living providers in New Zealand.
Summerset distinguishes itself from other companies through its focus on creating communities that residents are proud to call home. Founded in 1997 with the vision of creating a retirement community that would make their own parents proud, Summerset has grown significantly. Today, it operates over 35 villages across New Zealand, serving more than 8,000 residents. Summerset offers a continuum of care, from independent living to rest home and hospital-level care, ensuring residents have access to the support they need as their needs change.
The entry costs at Summerset Group 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 Summerset Group Retirement Village can range from approximately NZ$325,000 for the lowest cost one-bedroom apartment to over NZ$1,900,000 for premium accommodation options with additional space or enhanced views.
It’s important to note that these figures are indicative and subject to change. Potential residents should consult directly with Summerset Group Retirement Villages for the most current and accurate pricing based on their preferred village and living arrangements.
The Deferred Management Fee (DMF) at Summerset Retirement Village covers the cost of communal facilities, management, long term maintenance and the refurbishment and re-selling of your home and is deducted when you leave your home.
In the case of our independent living homes, where the standard DMF applies, you will be charged a total DMF of 25% of the licence payment you paid for your home. This will be charged at 5% on entry, then a further 5% per annum (accrued daily) over the next 4 years.
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 Summerset villages or different contracts within the same village. Therefore, prospective residents should consult the specific terms and conditions outlined in their contract with Summerset Retirement Village for precise details.
Summerset guarantees that increases in weekly fees will be the same as the percentage increase in the rate of NZ superannuation in any given year. Please check your terms and conditions.
Yes
Summerset Retirement Villages guarantees that the basic weekly fee will be discontinued, and the accumulation of your Deferred Management Fee (DMF) will stop, from the day you permanently vacate your apartment or townhouse.
Summerset Retirement Villages assures that no charges will be imposed other than for refurbishment for damage beyond fair wear and tear.
Please verify with your contract.
You don’t have to make any capital outlay to move between an independent unit and a serviced apartment within the same village.
If you move between homes of the same type (choice based transfer) then you will be required to cover the capital difference. A transfer admin fee of 2% of the licence price for your new home will apply in the case of choice based transfer.
However, the transfer admin fee does not apply if you transfer to a higher level of care within the same village, such as from a villa or apartment to a serviced apartment or the care centre (needs based transfer). Please verify this and any other fees.
You will receive your repayment sum, which is your licence payment, less the deferred management fee and any outstanding charges. If your licence has not on sold in six-months, Summerset will pay you interest on the amount of your repayment sum. Please verify your contract.
Calculating the total cost of living in Summerset retirement village
Below is a calculator designed to help potential Summerset residents compare the costs of living in a Summerset 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 Summerset 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. For other tools and more info return to Retirement Village Finance Essentials.
Understanding the financial aspects of moving into a Summerset Retirement Village is key to planning your retirement. This involves looking at the upfront costs, regular management fees, and any exit fees you might encounter. These costs are integral to your overall retirement financial planning. It’s important to weigh these financial obligations against your retirement goals and budget. Although the expenses can appear significant, they are part of what makes living in a Summerset Village secure, comfortable, and community-focused. By getting to grips with these financial details, you can make a well-informed choice about joining a Summerset Retirement Village, ensuring it fits with your long-term retirement plans. For comparison, considering other retirement villages like Bupa or Metlifecare can offer further insights into the best fit for your retirement living needs.