Simple Contract Options

Freedom and Flexibility

Simple Contract Options

Freedom and Flexibility

Clear contract options for flexibility and freedom

Enjoy the confidence of finding the right home to meet your retirement living needs.

Option 1

Peace of mind

Perfect for planners – provides a clear advance picture of all upfront costs and any costs due when you sell your home.

Option 2

Capital share

Gives a 50% share of capital gains – great if you’re planning on buying in an area where you expect property prices to grow.

Contract types FAQs

Here are the answers to some of the most frequently asked questions about contract types. To ensure you make the best choice, we always recommend incoming residents consult independent legal and financial advice before entering into a contract.

What’s the difference between the two contract types?

Our two contract types – Peace of Mind and Capital Share – provide options that can result in different outcomes if there are changes in the local property market.

	Option 1 - Peace of mind	Option 2 - Capital share
Stamp duty	✗ (except for freehold-title homes)	✗ (except for freehold-title homes)
Deferred Management Fee	✔ 5% per annum over 5 years (max. 25%)*	✔ 5% per annum over 7 years (max. 35%)**
Reinstate/renovation costs (state by state dependant)	✗ (except beyond fair wear and tear)***	✔ resident contribution dependant on works required
Capital gain/loss	✗ 0%	✔ 50%
Sales/admin costs (unless a 3rd party sales agent is appointed)	✗ Nil	✗ Nil
Re-payment timing after departure guarantee^	6 months	18 months
Benefits	✔ Provides a clear picture of expenses when selling the home ✔ Financial security - know exactly what costs you incur upon leaving the village; can plan for next steps accordingly whether it be aged care or children's inheritance. ✔ More attractive for the risk averse customer	✔ Share in capital gains ✔ Good option if purchasing in an area where you expect property prices to grow
Things to consider	If the value of the home increases over time, you will not receive any capital gains	Share in capital loss if property value drops Cannot forecast costs with certainty

*For Serviced Apartments, this is calculated at a rate of ✔ 9% per annum for the first year and 8% for the subsequent two years (max. 25%) **For Serviced Apartments, this is calculated at a rate of ✔ 9% per annum for the first three years and 8% for the subsequent year (max. 35%)

***For Serviced Apartments, ✔ the resident contribution is dependant on the works required

The figures above relate to fees payable upon exit of the village. Please consult with your preferred village's Sales Professional for costs applicable during residency. Levande recommends you seek independent legal advice before entering into a contract.

Will I have to pay Stamp Duty?

What is the Deferred Management Fee (DMF)?

What is the Levande Departure Guarantee (LDG)?

Do I have to pay for renovation or refurbishment costs?

Contact Us

Get more information or take the next step on your retirement journey.

1800 72 71 70

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While every effort is made to provide accurate and complete information, Levande does not warrant or represent that the information in this article is free from errors or omissions or is suitable for your intended use. Subject to any terms implied by law and which cannot be excluded, Levande accepts no responsibility for any loss, damage, cost or expense (whether direct or indirect) incurred by you as a result of any error, omission or misrepresentation in information. Levande reserves the right to change or amend details as circumstances dictate. This page may refer to features which are not available for all homes or may vary between homes. Levande recommends you seek independent legal and financial advice before entering into a contract. Published January 2021.