Some Key Points and things you need to know

The information below is a short summary of some key points. Our agent will provide you with additional information including all of the information required under the Retirement Villages Act which governs the operation of this village

The Karrinyup Lakes Lifestyle Village Development

Karrinyup Lakes Lifestyle Village has 52 independent living villas and a clubhouse. These homes operate under the Retirement Villages Act 1992 and its current Code. The residents’ Clubhouse has a solar heated swimming pool, a gym, a fully equipped kitchen, residents lounge, library, craft room and a large alfresco area with BBQ’s.

Occupancy Rights

To qualify for residency at least one of the residents must have attained the age of 55 years.

All residents should be capable of independent living in the Village.

Long Term Lease

You will receive security of tenure by way of a Residents’ Lease for the exclusive occupancy of the residence for your life and if more than one, each of your lives, subject only to the rights of termination in accordance with the Retirement Villages Act 1992. You are granted the right to use the common areas and community facilities on a shared basis with other residents.

Why A Lease?

Leases are widely used by Retirement Village operators in Western Australia as being the most practical and cost effective method for residency contracts. A lease gives you the security of tenure you reasonably expect and ensures that the whole Village is maintained to a continually high standard by the Village Managers who are responsible to all residents to ensure this happens.

This type of agreement also keeps down the cost of developing such a Village as there are no separate titles and there is no GST payable on the lease. There is no stamp duty applicable in this village under current legislation. The result is a lower purchase price to you.

Your Interests are protected

Your long-term lease provides a secure and legally binding interest that is protected by your Residents’ Lease agreement, the Retirement Villages Act 1992 and a Memorial which is lodged over the title of the village protecting your rights under the Retirement Villages Act.

The village cannot be sold for any other purpose than as a retirement village so your investment is secure.

Do I own the Land?

Whilst you don’t own the land, when you purchase a lease your payment means that when there is capital growth on the property upon resale, you can share in this growth. Naturally, values go up and down over time in much the same way as your current residence.  Under the scheme for Karrinyup Lakes Lifestyle Village you do receive the benefit of capital growth, subject to conditions, upon resale. This is clearly spelt out in the pre-contractual documents.

Residents’ Ongoing Costs

Each residence contributes an equal proportion of the village operating costs.  Some components of the village operating costs are described below and a more comprehensive list is provided in the Residents’ Lease:

a) Grounds maintenance

b) Water use (see Notes 1 and 2 below)

c) Building maintenance, including external painting

d) Clubhouse maintenance

e) Energy Costs for common property

f) Administration/Amenities

g) Building Insurance, Public Liability and Workers Compensation cover

i) Security and Alarm Monitoring

Note 1: In addition a resident is responsible for shire and water rates.

Note 2: Although some residences have water meters, these are not checked.  The water consumption charges are paid out of the levy.  It is possible that this will change in the future but no firm decision has been made about this.

Note 3: Future changes to legislation or changes to management structure may mean that additional costs would apply to the village and then these will be included in the village operating costs or paid separately by the Residents.

Note 4:   The costs of the security system is met out of the levy however the cost of occasional servicing and maintaining the alarm system and personal alarms are your responsibility.        

You are responsible for:

a) Contents Insurance, public liability for your villa and workers compensation insurance if you wish to employ your own tradespeople or domestic assistance.

b) Personal use of gas, electricity, phone, internet, Foxtel and any other services provided to the residence.

c) Gardening costs for any part of the garden you use as a part of the residence.

Maintenance of the Residence

You are responsible to keep the residence and its fixtures and fittings in good repair and replace fittings and fixtures that become worn out as necessary. This includes all fixtures and fittings such as airconditioning , HWS, stoves and cooktops, lighting and maintenance of the rear and front garden/outdoor area, and cleaning of the home. The Village Owner is through the Village Reserve Fund budget, external maintenance and structural repair of the building and common areas.

Emergency Call System

There is an emergency call system (“ECS”) installed in each residence. The system is monitored 24 hours per day by a monitoring company which will deal with any alarm.  The system can to some extent be adapted for individual needs. This can be discussed with the consultant.

Under What Circumstances Can a Residence Contract be Terminated?

The Residents’ Lease agreement may be terminated only in the following circumstances:

(a)  Upon the death of the resident or residents.

(b)  Upon thirty (30) days written notice by the resident.

(c)  The resident abandons the residential premises.

(d)  The residence contract is terminated by a statutory or government authority under a law relating to retirement villages, including the Retirement Villages Act.

(e) Or upon the Village Owner, subject to the provisions of the Retirement Villages Act applying to the Tribunal to terminate a residence contract on special grounds.

If a Resident Decides to Sell

As the homes are held under a lease, they are not actually “sold” in the legal meaning of the word. Rather, the lease is terminated and the residence re-leased to the new Resident.

When you sell, it is usually at the then current market value of the Villa.

When the purchase price or “Loan Amount” is paid by the new resident, the Village Owner is entitled to receive from you the following:

  1. A Deferred Fee

This is paid to the Manager when you vacate the villa.   It is calculated at 2.5% per annum (or part thereof) to a maximum of 25% of the price the Villa is sold for.

  1. A Reserve Fund Contribution

This covers the cost of major and infrequent replacement and/or renovations of the Village itself, at the discretion of the Village Owner at all times and is done in order to ensure high standards are maintained to achieve the best resale prices for the homes in the long term. Calculated at a rate of 0.5% per annum to a maximum of 5% of  the price the villa is sold for.

  1. Refurbishment Contribution

These are actual costs paid by the village owner if necessary and re-imbursed by the resident to cover such items as internal painting and carpet replacement in order to bring the home up to a marketable standard to achieve the best possible price.

  1. Other Costs Due and Payable to the Village Owner.

Any outstanding fees and charges are due but not paid before date of settlement.

  1. Marketing & Selling Expenses

Any marketing costs associated with the selling of the home. Typically this is agents commission and advertising costs.

Residents’ Vehicle Parking

Each residence is provided with either a single or double garage. In addition, Karrinyup Lakes Lifestyle Village provide some caravan and trailer bays. Availability is limited however and at the discretion of the Village Owners.

Resale Marketing Rights

The resident can appoint a selling agent however in practice the owners of the village will work with the resident to appoint a selling agent to sell the residence upon termination of the Residents’ Lease.

The sale price and hence new “Loan Amount” is agreed by you and the Village Owner and is based on fair current market value. The Village Owner has a right to purchase the unit from a resident at fair current market value.

Pets

Small pets are permitted only with the approval of the village owners. In practice small dogs or rarely larger dogs which do not bark and are not a general nuisance or a cat will be approved. Guide Dogs for the blind and hearing impaired are permitted. Refer to guidelines described in the Village Rules.

Optional Services

Karrinyup Lakes Lifestyle Village provides an independent lifestyle where residents are responsible for their own wellbeing with all the benefits of a village environment.

There are many support and care organisations providing services in the community such as for house cleaning, ironing, general maintenance, provision of meals, personal care assistance and medication supervision.

We can assist you with contact information for some of these service providers upon request. It is your responsibility to arrange these independently as required.

Importance of Reading Residence Documents and Information Statement

The above summary sets out some key provisions in an abbreviated form only. For full details you should refer to a copy of the Residents’ Lease and the Disclosure Booklet which is provided before you enter into a commitment to purchase.

There is much more paperwork involved in buying a villa (as well as “cooling off” periods) so this is a bit more complex than buying a property but we are more than happy to guide you through this.