It can be hard to believe just how large a difference choosing to live at Karaka Pines Rototuna retirement village can make to your finances. You can now compare retirement village costs, inclusive of all the major costs, between living in Karaka Pines Rototuna with any other village by using the calculator below. We have designed a tool for you to see if you are making the right decision for your future.
Guide to using the Retirement Village financial comparison calculator.
When using the retirement village comparison calculator below the figures on the left hand side column are for the costs at Karaka Pines Rototuna. The figures to fill in on the right hand side boxes are for the comparison retirement village.
To begin: Enter the value of your Karaka Pines Rototuna home of choice in the top left box. If you have trying to decide against a unit in another village enter the price of that unit in the right hand side box. If you don’t know that price then just to see how the calculator works you could enter the same price as for your KP Rototuna unit.
The second line is the choice of facilities fee. You might know this as the deferred management fee. Essentially they are the same. These are a drop down box so you can choose from one of our three options, either 10% up front, or 12.5% when you sell, or finally a fixed weekly fee with the facilities fee of 25%. The drop down box for the comparison retirement village gives you a choice of the standard deferred management fees charged by the main operators, being 20%, 25% or 30%.
We have included the weekly fees so that you get a feel for the total cost of living in the village across all the years you are there. Our fee is not able to be amended. This is based on your choice of facilities fee. we do allow for the weekly fee to rise at the rate of inflation unless you have chosen a fixed facilities fee.
How long will you live in the village. Of course we all hope you will live in our village for years but statistically it is likely to be around 8-10 years on average, depending upon your age. At 73 you could well expect this period but at 80 or 85 it is unfortunately, on average, less.
The house price inflation is an interesting choice. The last twenty years has had very large house price inflation across New Zealand. In Hamilton over the three years to 2020 the house prices rose 19% according to Stuff. Infometrics published this graph back in December 2016 showing Hamilton house price inflation sitting at 5% up to 25% for the period. Of course Covid 19 may well slow this down for a year or two but over the long term our suggestion would be to use a conservative 3 % or maybe 5%.
With all this complete click the button “Calculate” at the bottom to learn how well off you will be after owning a home in our village.
For the calculation we have assumed that at Karaka Pines Rototuna the refurbishment expenses bring the unit back to near new accumulate at $2000 per annum and that the advertising expense when selling will be $1000. We have assumed no refurbishment or selling expenses at the other village. We have used the house price inflation figure as the general inflation figure for costs.