What is the Deferred Management Fee?

The Deferred Management Fee (DMF) covers the cost of improving and contemporising your community over time. As a long-term operator, Lifestyle communities has a 30-year refurbishment plan in place for every community. The DMF allows us to keep the cost of purchasing a home as low as possible and ensures we have a vested interest in growing the value of your property. The DMF is only payable when you sell your home.

The Deferred Management Fee explained by our Founder, James Kelly.

We're in it for the long haul

The outcomes of the DMF, proven over time, include:

• It supports affordability by deferring some costs typically payable upfront, until later, when you choose to sell your home
• The ability to enjoy equity free up when you purchase
• Average capital growth of 9.5% pa over the last 10 years, representing a strong financial return
• A mutual interest in driving capital growth of your home

How the Deferred Management Fee is calculated.

The Deferred Management fee is capped at 20% after five years, regardless of how long you stay, allowing you to benefit from continued capital growth. You’ll pay 4% of the home value on the sale for each full year. If you sell part-way through a year, you’ll pay a pro-rata amount of the 4% annual increase. Lifestyle Communities has averaged 9.5% capital growth per annum over the last 10 years. With our average house price growth running at 9.5%, this more than covers this meaning that nearly all our homeowners leave with a cash excess when the sell their home and pay the fee.

Watch one of our homeowners, Graeme, share his thoughts on the benefits of the Deferred Management Fee.