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Last year Aveo launched two new alternatives to its existing Aveo Way contract introduced in 2015: Certainty and Essentials.
The “base level” contract Aveo Essentials is described as “a contract suitable for seniors looking for an easy and affordable entry into retirement living”.
As with all three contracts, there is a deferred management fee (DMF) of 35 per cent (25 per cent in new villages) based on purchase price. On the Essentials contract this is calculated over five years. The move-in guarantee is three months and guaranteed buyback is 12 months. With all three, there’s no sharing in capital gain (or loss) and the operator covers refurbishment costs and selling fees.
The Aveo Way contract comes with adjusted guarantee periods and a shorter buyback period (six months on both) with the DMF capped after three years.
Where the Aveo Certainty differs is in terms of what happens when you want to move from one village to another, or a residential aged care facility. Aveo Group chief executive Geoff Grady said the Certainty contract addresses one of the greatest pain points – the need to transition quickly and seamlessly into higher levels of care when needs increase.
Under the Certainty contract the DMF, move-in guarantee and guaranteed buyback are the same as the Aveo Way contract. There is a $2000 annual fee (on the Certainty contract) to cover transfers, payable on exit instead of a DMF.