The retirement village operator has released two new contract options across its 64 villages.

According to Stockland Retirement Living CEO Stephen Bull, prospective village residents have different financial situations and preferences and Stockland’s research tells them residents are looking for simple contracts with affordable retirement options.

Stephen adds that the new contracts will give the choice back to the customer with the option to share in the capital gain of the property or to have complete certainty over their costs.

The new contracts are:

Peace of Mind – the Deferred Management Fee (DMF) is 5% per annum based on the initial price paid for the home and maximises out after five years. Stockland covers all renovation costs, allowing the resident to simply hand in the keys and walk away, with no marketing fees but there will be no share in any capital gain or loss.  Residents will also be repaid after a maximum of six months from departure even if their home hasn’t yet been sold.

Capital Share – this option offers a 50% share in the capital gain of the property. DMF maximises out at seven years or 35%. Stockland hasn’t specified but it is assumed the resident covers refurbishment and marketing costs.

Stockland also provides a change of mind guarantee which refunds all payments within six months of moving into a village.

These two options are in addition to its new ‘Aspire’ model launched earlier this year, which offers over-55s living with no DMF.