Retirement Living FAQ

We understand that making the decision to move to a village can be daunting. Here are some of the most commonly asked questions and our answers that may assist you with your decision. Of course, we’re here to talk personally with you about any other questions you may have too.

How Things Work

As with most retirement villages, when you choose a KeyInvest Village you purchase a ‘Licence to Occupy’ your chosen home under Terms and Conditions set out in a standard contract. The Retirement Villages Act protects your accommodation rights. With this model, in paying the purchase price, you essentially make what can be best described as an interest-free loan to KeyInvest. When you choose to sell your licence, the loan will be repaid less a management fee (commonly called the Deferred Management Fee or DMF) based on your length of tenancy and changes in the home’s market value. Full details are available at any time from KeyInvest and all fees and charges are clearly disclosed before you commit to a ‘Licence to Occupy’. A monthly maintenance fee covers village staff wages, council and water rates (where not separately assessed i.e. Chiton and Wimmera Lodge), external maintenance of the home, the upkeep of communal areas and the maintenance and or replacement of core appliances provided in the homes such as stoves, air-conditioners and hot water services. The maintenance fee and some details vary depending on the village – please contact us for information relating to your preferred village.

How does the Deferred Management Fee (DMF) work?

The DMF is the financial amount retained by KeyInvest from the re-sale of the home when it’s vacated. KeyInvest, like the majority of retirement village operators in Australia, use the DMF model as it allows the home to be bought for a reduced amount, effectively deferring some of the cost of acquisition to when you leave the village. It’s important to remember that residing in a retirement village provides benefits that a normal home doesn’t – access to the Community Centre and associated facilities, living amongst those who share similar interests and activities, reduced time and effort on house maintenance and so on. You’ll often find that a KeyInvest home (especially when combined with all the other benefits) offers far superior lifestyle value than an equivalent home “outside” of the village. KeyInvest is able to offer quality homes for competitive prices because we defer some of the purchase price to when you leave, allowing you the benefit of these funds whilst you’re a resident.

Will I receive a share of the capital gain when I leave?

Yes. Under our standard Residence Contract if the home is sold for an amount that produces a capital gain, a KeyInvest resident does share in this gain. For example, if a home is purchased for $250,000 and sold 10 years later for $350,000 the DMF will be based on the sale price ($350,000). The resident receives $350,000 less the DMF and other fees that may be applicable (any other fees, if charged, are clearly disclosed in the Contract and to the resident before signing a Contract).

How are costs controlled?

Before increasing the charge for a particular general service, KeyInvest will consider whether there is a more cost-effective alternative solution. If it’s going to cost the residents, we will only offer a new service if the residents agree to it being supplied by special resolution at a residents’ meeting.

Who insures the village?

KeyInvest insures the village including the homes ‘owned’ by residents. Residents are responsible for “household and contents” insurance covering all personal items.

How are the Village Budgets managed?

KeyInvest prepares an Annual Budget and in consultation with the local Residents’ Committee determines the maintenance fee for the next year. We also have to provide a financial report for the past 12 months, which is independently audited. The maintenance fee must be based on the actual costs incurred and KeyInvest works closely with our Residents’ Committees to ensure open and clear communications about the Budgets.

How are the residents represented?

Residents typically establish a Residents’ Committee. The Committee deals with KeyInvest on behalf of residents regarding the day to day running of the village and any complaints or proposals raised by the residents. Establishment of a Residents’ Committee is not mandatory – it’s a matter for residents, though we strongly encourage it.

Who pays for maintaining the village?

When a home is vacated, KeyInvest places a percentage of the outgoing amount in a Trust Fund. This Fund ensures major facilities can be extended or replaced when they get beyond their useful age e.g. a swimming pool. This Capital Replacement Fund ensures that you, as a new resident, and all future new residents, have the benefit of infrastructure that is in good working order which is critical in ensuring the quality of the village and the future value of your home is maintained.

How do I get the relevant information before "buying" in a village?

KeyInvest will provide comprehensive information to you in our Residence Contract as required by the Retirement Villages Act. It contains information on the:

  • Cooling off period after you sign the contract.
  • Ingoing contribution payable.
  • Maintenance fee charges.
  • Refund calculations and timings.
  • Exit fees payable.
  • Resident’s capital gain entitlement.
  • Re-sale arrangements.
  • Residence rules.
  • Dispute resolution process.
  • Rights to terminate the contract.

You can also talk to groups such as the Seniors Information Service and Centrelink.

Can KeyInvest terminate my residency?

The major (and extremely rare) reason for termination is if your village home is no longer suitable for you given your health – which generally means you need to move on to aged care for your own welfare. Other than for health reasons, KeyInvest would only consider terminating a Residence Contract if a resident has intentionally injured a person in the village or intentionally damaged village or personal property. Any disputed termination by KeyInvest is referred to the South Australian Civil and Administrative Tribunal (SACAT) to rule on the matter.

What is the minimum age to begin life in a village?

The minimum age to join a village is usually 55, with at least one member being semi-retired. Incidentally, this age limitation is a rare example of where the law allows discrimination by age!

What happens if my partner passes away?

You can stay in your home, usually as long as you can cope with it and can look after yourself, provided you qualify for occupancy under state laws and the terms of the Residence Contract. It can sometimes be a problem if the Contract is in the name of the deceased resident only. For better protection, the Contract should always be in names of all the persons who intend to permanently reside in the home at the time the Contract is signed.

Can I take a pet with me into the village?

Absolutely – KeyInvest encourages appropriate pets such as cats, small dogs, fish or birds. However pets are not allowed to inconvenience other residents or flora and fauna (exceptions apply to Chiton due to wetland nearby).

Can I have visitors, such as my grandchildren, come and stay with me?

Absolutely – friends and family are welcome to enjoy short stays with you. In specific situations, extended stays may be considered at the discretion of the Village Manager.

Speak to our friendly staff about our range of retirement living options.

Fall in love with our villages.

Contact or call us on 0429 847 711