When you live at Pavilions Blackburn Lake retirement community, you get much more than your own stylish retirement apartment. You also get to enjoy a wide range of shared spaces, activities and services.
To cover the cost of providing these, there are three types of payments: the refundable ingoing contribution (the ‘purchase price’); the monthly service fee; and the deferred management fee (DMF). The ingoing contribution and monthly service fee will vary depending upon the size and type of your retirement apartment.
Pavilions Blackburn Lake offers two deferred management fee (DMF) options, allowing you to choose the one that best suits your retirement needs. The ﬁrst is designed for people comfortable with the property market and the potential capital gain (or loss) on their apartment when the time comes to sell. The second option is for those who would rather know up front how much DMF they’ll pay and exactly what they’ll receive from the sale proceeds when it comes time to sell their apartment.
Beneﬁt from an expected capital gain
If you’re conﬁdent property prices will rise over the number of years you’ll be living in your Pavilions apartment, this is probably the best option for you. It requires you to pay a higher deferred management fee (DMF) but after payment of the fee, the entire capital gain (or loss) will be yours.
With this option, the DMF is 30% of the outgoing or resale price, which is the amount you sell your apartment for. While this is higher than the Certainty Model (below), it gives you the potential to beneﬁt from any capital gain – and the greater the capital gain, the greater the beneﬁt to you.
Of course, we recommend you seek independent ﬁnancial advice before making your decision on which Pavilions ﬁnancial model is right for you. To find out more, talk to our Sales Manager today or fill in the form below.
Beneﬁt from a ﬁxed deferred management fee
If you’re looking for more ﬁnancial certainty for the future, you will most likely prefer Pavilions’ Certainty Model. It offers you a lower DMF, however you do not share in any of the capital gain (or loss) that may accrue.
With this option, the DMF is 25% of the ingoing price, which is the amount you buy your apartment for. Because it is calculated on the original purchase price, you will know exactly how much your DMF fee is going to be when it comes time to leave Pavilions Blackburn Lake.
While there is every chance your apartment at Pavilions will appreciate in value, no-one can predict the future. If you’d rather not take the risk and instead have certainty over what your DMF will be, this option may be best for you. Please seek independent ﬁnancial advice before making your decision. To find out more, talk to our Sales Manager today or fill in the form below.
Disclaimer. Refurbishment and administration fees are also applicable on exit. These are the same under both DMF models. The particulars contained in this document are provided as a general outline for the guidance of the intending resident. Whilst every effort has been made to ensure the information in this document is accurate to the best knowledge of Seventh-day Adventist Church, changes may be made over the duration of the development without notice. All descriptions, dimensions, items and references are given in good faith and believed to be correct. Example calculations are illustrative only and are not to be taken as ﬁnal, accurate, or authoritative or otherwise.