RV Calculator

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This RV Calculator is offered to help put a $ value on those visible and not so visible costs of entering a retirement village.
(There are many variations to the arrangements to enter a Retirement Village, the calcculator may not be applicable for all of them.)

Two further Retirement Village calculators are available at,

Macquarie University – http://www.rvcalculator.org/#/

NSW Government – http://rvcalculator.fairtrading.nsw.gov.au/

retirement village ready reckoner

Entering Data

Relevant data and a projected earnings rate to be entered into the boxes coloured green in column B and column D.

WARNING – Some contracts calculate the Capital Contribution (aka the deferred fee) not on the initial entry price but on the eventual selling price. This practice has the capacity to have an even higher impact on your capital over time, eg: 25% of an entry price of $200,000.00 is $50,000.00. For village residents with a long period of occupancy 25% of an exit price of say $300,000.00 is $75,000.00, an effective deferred fee rate of 37.5% of the in-going amount paid.
Where this is the case the amount entered at B4 = Entry $ Price, B5 = Estimated $ Selling Price on departure (if applicable).
Click this link – See example impacts

In column B the calculator will give an indicative $ cost of village occupancy expressed on a weekly basis, see B13 and B14. Column B will also give an indication over 3 different periods of the change in value of the amount entered at B4 (or B5) inclusive of earnings forgone, see B16, B17 & B18.

In column D the calculator will give an indication over 3 different periods of the change in value of the capital amount (D4) inclusive of earnings gained or lost had the capital been retained in the original position, say the family home, see D16, D17 & D18.

RV Calculator – Retirement Village Versus Retaining your Capital
You need to be connected to the internet to use the calculator

No representations or warranties of any kind are made for this calculator about the accuracy, completeness, currency, reliability or suitability of the information for any purpose. Users acknowledge that they should seek professional advice making any decisions.

1. The capital contribution amount at B10 (aka the deferred fee) is paid within the full entry price at B4 (or B5) prior to taking occupancy in a retirement village.

2. The refundable value of the deferred fee generally reduces year by year as your occupancy continues until the deferred fee period at B7 runs out.
See example – Graphic 5.

3. No allowance has been made in the calculations for any annual increases in the weekly management fee, the compounding of earnings forgone or gained or whether the village operator provides a capital gain/loss provision in the contract of occupancy.

A capital gain/loss provision in your contract may have an impact on your financial resources or those of your family to pay nursing home entry costs.
See – Table 1.

retirement village calculator

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