At Woodcroft Estate there is no facilities fee. At other villages you will pay a weekly fee plus a facilities fee of between 20 and 30% of the buy price of your home. The village owner keeps all the growth in the value of the house from when you bought it.
You’ll be Better off Financially at Woodcroft
At Woodcroft Estate the fees are:
A weekly fee for the running of the village of $125.00 plus a weekly fee of $12.00 which goes into the village renovation fund to ensure the long-term upkeep of the village. When you wish to sell your house it has to be refurbished to “As near new condition.” But this upgrade results in the house selling for a higher amount from which you and your family get the gains. You can choose to use village management or your own real estate agent to sell your house.
For example, if you buy a home in Woodcroft for $500,000 and over five years we assume it goes up in value by 3% each year it will be worth $579,650 when you come to sell. Over the 2018-year residential house prices in the Selwyn District rose by 4%.
At a traditional village you receive $500,000 less 20% (or up to 30%) which means you would get $400,000 when selling five years later.
At Woodcroft you get the selling price of $579,650,
Less resale fee $23,200
Refurbishment of the home $10,000 (estimated)
You’ll receive $546,450
In this example in just five years you are $146,450 better off.
Weekly fees are different between villages. At Woodcroft Estate because you get the capital gain from the sale of your home you also pay all the costs of running the village in the weekly fee. Thus, it can be slightly more than at villages running the traditional fee model. The effect of this is that if Woodcroft’s fee was $40.00 more per week then over five years this would amount to $10,400 meaning your overall gain is $136,050.
The choice of a home in Woodcroft Estate can make a considerable difference to the options available to you when it’s time to sell, whether that is to move to another town, an aged care facility or is being left to family.