What are the costs of Verve?
The ingoing contribution for a Verve apartment will vary depending on which apartment you select and will be fully detailed and explained during preliminary discussions with the Verve Manager.
At Verve we encourage potential residents to obtain independent legal advice and consequently if you choose to obtain advice, you will have to pay your own legal fees.
When choosing a legal advisor we suggest you obtain a fee estimate and also ensure that the advisor has experience in the Retirement Villages Act 2004.
A useful free of charge reference point is the Law Society of Tasmania, 28 Murray street, Hobart, TAS, 7000. Phone (03) 6234 4133 or visit www.taslawsociety.asn.au.
St Ann’s does not provide financial or investment advice. St Ann’s advises you to seek independent financial advice.
Fees and Charges
As is usual for accommodation that operates within the Retirement Villages Act 2004, your lifestyle at Verve will incorporate a monthly service fee and exit fees.
Monthly Service Fee
The monthly service fee covers the provision and maintenance of the Verve community facilities. This includes all rates & taxes, water charges, maintenance of roads, paths, walking tracks and street lighting, staffing costs, general insurance, all costs associated with gardening, landscaping and common building maintenance, plant and equipment, security and other general administration costs associated with managing the Verve community.
Currently, the Monthly Service Fee at Verve is $303.30 per month per apartment. There is no GST payable on the Monthly Service Fee.
The Monthly Service Fee will be reviewed annually and the changes to the Monthly Service Fee will be explained at meetings between Verve management and residents.
Exit Fees
Exit Fees allow you to access more money for personal lifestyle options while living at Verve, as the fee is only payable once you have left the Verve community. A representative example that calculates these fees is provided below.
Exit fees consist of:
Deferred Management Fee
Deferred Management Fee (DMF) is your share of the establishment costs of the common facilities at Verve, in particular, its infrastructure, community/activity centre, retail centre and outdoor facilities. It becomes payable only upon your departure from Verve and accordingly is deducted from the amount refunded to you following sale of your right of residence. By deferring this fee we are considerably reducing the amount you are required to provide up front to fund your initial ingoing contribution.
The DMF is calculated on the period of time you have been a resident at Verve. The fee is 2.75% of the initial ingoing contribution amount multiplied by the number of years or part of a year (calculated on a daily basis) for the time you have been at Verve. The DMF is limited to 15 years.
Shared Capital Growth
The assumed capital growth in your Verve apartment is shared on a 50/50 basis between St Ann’s and the resident. Therefore, on exit from Verve St Ann’s will receive a 50% share of the difference between the original ingoing contribution and the replacement ingoing contribution, in addition to the Deferred Management Fee.
Inspection / Preparation and Marketing Fee
This fee is comprised of two components; a Fixed Fee and a Variable Fee. The Fixed Fee is an administration fee to cover terminating and transferring your agreement to a new resident and inspection related costs. The fixed fee is $400.00 and GST does not apply.
The Variable Fee is calculated at the rate of 2% of the replacement incoming contribution.
Other than the Ingoing Contribution, no monies are required up front as both the fixed and variable fees are deducted from your Incoming Contribution before it is refunded to you after a new Resident takes up residency of your apartment. When you leave the apartment, Verve management will arrange for the apartment to be inspected. At the time of the inspection, a written report will be provided regarding any works that must be completed prior to the occupation of the apartment by a new resident to ensure strict standards of accommodation are maintained and peace of mind regarding the condition of your apartment. Any maintenance costs will be your responsibility; however, Verve management will be responsible for co-ordinating the maintenance services.