What is retirement living?

What is retirement living

Retirement living is a community style independent living arrangement, also known as a retirement village or retirement community. Homes are designed specifically to suit the needs of people over 55 years.

Sapphire Luxury Retirement Living at Hervey Bay is one of 29 Retirement Communities owned and operated by RSL Care, and is the most prestigious retirement development ever undertaken by RSL Care.

Retirement living dwellings at RSL Care range from on the ground villas and studios to high rise apartments, such as Sapphire.

Retirement living at RSL Care offers resort style facilities which means residents enjoy a relaxed and secure lifestyle in a community environment without the worry of maintaining the gardens or the outside of their home.

RSL Care Retirement Communities including Sapphire operate under the Retirement Village Act in Queensland and are governed by the set rules which offer consumer protection.

Do I pay stamp duty for a Sapphire apartment?

There is no duty payable under a License Agreement at Sapphire.

Purchase scheme

To purchase an apartment at Sapphire, you are required to enter into a Residence Agreement in the form of a Loan and License Agreement. This means you provide a loan (non-interest earning) to RSL Care to the value of the apartment you choose. This grants tenure to the Sapphire villa, studio or apartment as if it were your own. However, no change of land title takes place; the land remains the property of RSL Care.

“Tenure" is the term used to describe the different legal bases for the various forms of occupation or ownership rights used in the retirement village industry.  For more information about retirement village purchase arrangements visit www.fairtrading.qld.gov.au.

When the apartment is sold, at settlement you receive the following:

The original ingoing contribution (Loan)

Plus

50 percent of the Capital Gain

Less

Exit Fee

Any outstanding Fees

Any other costs or amounts owing on your account.

What is a Deferred Management Fee (DMF)?

As with all resident equity retirement villages, and in accordance with the Retirement Villages Act, when an apartment is sold the outgoing resident is required to pay an Exit Fee known as a DMF.

These fees can include general service charges, personal services charges, outstanding fund contributions, and other costs covered in the contract. These are deductions that determine exit entitlement.

The Exit Fee helps cover RSL Care’s large initial investment in land, village development and construction costs. Please note, there is no stamp duty payable when you purchase at an RSL Care retirement village. To make buying a villa as affordable as possible, the payment is deferred until your villa is sold.

The minimum Exit Fee is six percent of the ingoing contribution if a villa is vacated within the first 12 months. The Exit Fee is three percent of the ingoing contribution per year capped at 21 percent, based on a quarterly pro-rata percentage until the day of vacation.

 Are there any other fees of which I should be aware? 

A weekly General Services Charge is payable for each apartment which covers:

  • Management and administration
  • Gardening, day to day maintenance and cleaning of the village infrastructure
  • Water, gas, electricity of a communal nature
  • Emergency call system monitoring
  • Maintenance and upkeep of the recreation facilities
  • Running of the village bus
  • Building insurance (this does not cover contents or personal items)
  • Rates, taxes other charges

This charge is approximately $130 per week at Sapphire and reviewed annually.

General services charges do not include charges for individual services such as charges for laundry, meals and cleaning the interior of apartments.

The Retirement Villages QLD Act stipulates residents are responsible for paying the General Service Charge for the first three months from the date of vacant possession. For the following nine months, the cost of the General Service Charge is shared with RSL Care. Following this twelve month period, RSL Care will pay the full amount of the General Services Charge.

How does my apartment get sold when I wish to leave?

RSL Care takes care of the resale of your Sapphire apartment when you choose to terminate your Residence Agreement. To terminate your Residence Agreement, you are required to put in writing your Notice of Intent to Leave. Once this Notice has been submitted to the Retirement Living Manager, we will work with you to get the apartment sold as soon as possible.

Do I need to refurbish the villa/apartment when I leave?

Yes, residents are responsible for 50% of the cost of reinstating their apartment at Sapphire when vacating their apartment and 100% of damage deemed accelarated or deliberate wear and tear.