Why Deferred Management Fees?

At Marian @ Manuka, we are proud of the quality of the apartments we provide, the development as a whole and the surety for the owner of what is an important investment both financially and in a lifestyle for them.    We stand by our development and the service we provide.

The Deferred Management Fees (Exit Fees) of Marian @ Manuka are similar in nature to other retirement villages within the ACT all of which must adhere to the legislative requirements of the Retirements Villages Act 2012; I would however, like to clarify a few points.   

The Catholic Archdiocese is a ‘Not for Profit’ organisation.  Under the Act, we are able to sell these units under a ‘Loan Licence Agreement.’ In essence, a lifetime lease.   This lease agreement provides significant savings for you.

  • The purchase cost of a Unit is less than what you would pay if paying outright for a deed of title.
  • There is No stamp duty payable = significant saving.
  • Monthly Management Fee: – At Marian @ Manuka, the fee is $340 per month for a 1 bedroom, $370 per month for a 2 bedroom and $400 per month for a 3 bedroom apartment.  These management fees include ACT rates. (According to the 2016 PWC/Property Council Retirement Census, 61 per cent of operators said their recurrent charge included council rates.  In 2016, the average monthly recurrent charge for a single resident was $409.)
  • The Management fees also include having a property manager, building insurance, gardening, cleaning and maintenance of common areas, maintenance of plant and equipment and the use of a pavilion.  In addition, all your fixtures and fittings are either repaired or replaced at no cost to you. (Except for normal wear and tear.)
  • You do not have a sinking fund to contribute to.  Nor will you be called upon to spend extra money to fix a building issue or for a building upgrade. (These types of costs are what the deferred management fee will be used for.)
  • Finally, when it comes time for you to leave Marian @ Manuka, any capital gain on the property is shared on a 50/50 basis between yourself and the Catholic Archdiocese.  Not many retirement villages provide this as an option.  (In the event of a capital loss – this would be borne by the Catholic Archdiocese of Canberra and Goulburn.)  An Independent Valuer will come in and value the property. The property is then placed on the market at the price set by the Valuer.  In the event the property has not sold within 6 months, you will then be paid out in full that time. You will not have to pay any costs associated with the selling of the property.  This is a very simple and stress free way for you to sell.

Whilst the Deferred Management Fees is a cost that people would ideally prefer not to have to pay, they actually compare very favourably when you consider all the benefits of living at Marian @ Manuka.

Consider the savings of  – reduced purchase cost – no stamp duty – no maintenance at all on the property throughout your entire duration of living there – no one off call for payments for upgrades or replenishment, no sinking fund, no need to hire contractors – no requirement for building insurance – no costs, worries or anxiety on selling, and with likely capital gain earnings.

Living at Marian @ Manuka will provide you with the surety of fixed budgetable outgoings throughout your entire period of tenure.  Also, you may be eligible for significant tax concessions if downsizing your property.

In a recent article posted online as to reasons not to downsize as you retire, I can only say that it was certainly erroneous in regards to Marian @ Manuka.   Read what was posed and what is the reality at Marian @ Manuka.

At Marian @ Manuka, you only have to pay the monthly management fee. When you eventually do leave Marian @ Manuka, you will have the deferred management fees deducted from your incoming contribution. (Purchase cost.)That will be a guaranteed pay out to you, Plus you will receive 50 % of any Capital gain over that period.

This may be correct in most apartments, but this is not the case at the Independent Living Units of Marian @ Manuka – and it is written in the contract. After paying your initial purchase cost, your only other payment required from you is to pay the monthly management fee. (and any of your utility charges) Any of these associated costs mentioned above are covered by the Deferred Management Fees. (Exit Fees) You are absolutely sure of what your future costs will be which means that you have surety of your budgeting costs for the remainder of your stay at Marian@Manuka..

This is not correct at Marian @ Manuka, any and all major servicing is paid for from the deferred management fees and through the monthly management fee. You will never be called upon to make any further payments.

Not correct, at Marian @ Manuka, any and all major redesign, upgrades etc are paid for from the deferred management fees.

This is correct. If you wish to make alterations to your apartment, you will need to seek the consent of the building owners and also pay for it yourself. You will also have to pay the cost of re-instatement when you leave.

This is not correct. Buying into the Marian @ Manuka actually means you are in total control of all of your living costs in regards to your home. But like anywhere else, you will still have to pay for utilities such as electricity and telecommunications.