Depending on where you want to live in New Zealand, the cost of ‘buying’ into a village can vary greatly – some units can be priced in the $100,000s while others are in multi-millions. This ‘purchase’ price is known as the Capital Contribution
Every retirement village unit listed on retirementvillages.co.nz has an associated ‘from’ price; you can use the filters in the search panel to set price limits while using the site.
Remember: ‘purchasing’ a dwelling in a retirement village is not the same as usual property purchases. It is not an asset you ‘own’ (like your family home) but rather you ‘own’ the right to live there. Therefore, while you/your estate will receive the purchase price minus the Deferred Management Fee (DMF) and any other exit costs, you are unlikely to receive a capital gain when you leave the village.
There are also other costs you’ll need to account for when entering a village, aside from the ‘purchase’ price, such legal fees. As a village ‘purchase’ is a complex legal arrangement that requires specialist, independent legal advice, legal fees can be more than for a standard property transaction.
Updated: 16 Sep 2022