Retirement Village Costs & Fees in Christchurch

Costs & Fees

Capital Sum

There are multiple components to retirement village costs in Christchurch, the first of which is the capital sum. This is the purchase price paid for the Occupation Right Agreement (ORA) to secure your right to occupy the residence of your choice within Merivale Retirement Village. The capital sum varies according to the size and location of the residence you choose.

To secure an ORA, you will need to complete an application form and pay a small deposit. The application form contains conditions that need to be satisfied which may include the sale of your current home, receiving legal advice and providing Merivale Retirement Village management with a medical certificate.

We also strongly encourage intending residents to consult with their families and better still to get them involved in the decision. It is a compulsory condition to obtain legal advice and the lawyer is required to provide a certificate indicating that the advice has been provided and that you are fully conversant with the terms and conditions of the ORA.

Once all the conditions have been met, the capital sum is required to be paid on settlement.

Membership Fee

All residents are required to pay a deferred membership fee (DMF) on departure from the village. The DMF is capped at 30% of the capital sum payable on entry. The 30% is accrued at 10% per year over the first three years of occupancy. Once the DMF is fully accrued, it cannot be charged again. Your membership fees stop accruing however if your ORA is terminated within the initial 3 year period.

Retirement Village Fee

This is a set weekly fee of $155 that covers all the outgoings of the village which include, but are not limited to, council rates, water rates, building insurance, external maintenance, upkeep of senior living community facilities, staff costs, gardening and management of the village. The village fee is increased annually by the same rate at which superannuation is increased. This treatment of the Village Fee ensures that you are protected from any increases in operating costs that are in excess of inflation.

Your Own Retirement Village Costs 

You are responsible for the costs of internal maintenance, your power and phone bills and insurance on your house chattels and belongings.

Independent Advice

The Retirement Villages Act 2003 is designed to provide improved protection for individuals who buy into retirement villages. If you intend to purchase you must get independent legal advice before signing your Occupation Right Agreement (ORA).