Deferred Management Fee
What is a Deferred Management Fee
The Deferred Management Fee (DMF) is paid when a Lifestyle Communities homeowner decides to move out of the community.
It is a scaled percentage of 4% of the selling price per year and is capped at a maximum of 20% from the 5th year. Regardless of how many years a homeowner stays with us in one of our communities, we’ll never take more than 20%.
As per our Smart Buy Guarantee, if you decide to move out within the first 12 months of purchasing your home in the community, we will waive the DMF fee.
Why have a Deferred Management Fee?
The Deferred Management Fee (DMF) helps us to keep the entry prices of our homes affordable as a portion of the cost for developing, running and maintaining the community is recovered when a homeowner chooses to leave the community.
Lifestyle Communities also believes that the DMF ensures we have a vested interest in the capital growth and maintenance of the communities and how it presents over time. We are committed to investing in the ongoing improvement and refurbishment of our facilities to ensure the best possible experience and enjoyment of our homeowners. We’ve seen many examples where a DMF is not charged and it can lead to the company not being as committed to investing back into the community and its facilities.
We are proud that the ongoing investment in the presentation of our communities and choice to develop in key growth areas across Victoria has resulted in an average capital growth across our communities of between 10 – 12% over the last five years.