Part of Downsizing.com.au’s “TrueCost of Downsizing” series — helping Australians move with clarity and confidence.
When many Australians first explore retirement living, the price tag they see is rarely the price they’ll ultimately pay. Hidden costs — from deferred management fees to refurbishment charges — can quietly eat into future returns.
That’s why TrueCost, powered by VillageGuru and featured on Downsizing.com.au, was designed: to make every dollar of the journey visible before you take the leap.
“No one likes surprises when it comes to money — TrueCost removes them.”
The unseen side of retirement contracts
While most operators disclose fees, the complexity of retirement village contracts often hides their true impact. There are three main areas where downsizers frequently get caught out:
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Deferred Management Fees (DMF): Typically 25–35% of your entry payment, deducted when you leave.
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Refurbishment or reinstatement costs: Charged to bring your home up to resale standard.
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Buyback or resale delays: Some contracts take up to 18 months to repay funds after departure.
For Cautious Planners and Supportive Children helping parents navigate the fine print, these details can feel overwhelming. TrueCost cuts through that noise.
How TrueCost reveals the details
By generating a personalised financial model, TrueCost shows:
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How much equity you’ll retain after exit
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Estimated resale and buyback timeframes
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Ongoing fees and their cumulative effect
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Potential impact on pension entitlements
Instead of deciphering dozens of pages of legal text, users can see everything summarised in an easy-to-read report — empowering them to make informed, confident choices.
Real-life clarity
Margaret, 72, was comparing two retirement communities in Victoria. Both offered beautiful amenities, but only after requesting a TrueCost report did she learn that one charged refurbishment costs of up to $15,000 on exit, while the other absorbed those fees entirely.
“The numbers told a very different story,” she said. “Once I saw the breakdown, it was obvious which community made more sense financially.”
For her Cautious Planner persona, seeing the total exit value upfront transformed her decision from guesswork to certainty. Code of Conduct | Retirement Living
“Transparency is power — and power means choice.”
Why hidden costs matter
Even a small difference in DMF or resale timelines can have a large impact on estate planning, Age Pension eligibility, or your ability to fund aged care later. Assets test for Age Pension
As of 2025, Centrelink still applies different asset thresholds for homeowners and non-homeowners. Knowing whether your entry payment affects your classification — and how much equity you’ll retain — is essential.
TrueCost integrates these variables so you can forecast your full position, not just your village fees.
Empowering every persona
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Planners love the detailed projections.
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Supportive Children use TrueCost to help ageing parents avoid costly surprises.
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Active Lifestyle Seekers can enjoy their next chapter knowing their finances are secure.
By turning complex fine print into clear numbers, TrueCost builds trust — between families, operators and buyers alike.
The takeaway
Hidden costs don’t have to stay hidden. TrueCost is making transparency the new standard in retirement living — giving Australians control over their decisions, not just their destination.
To see your own breakdown, look for the TrueCost badge on listings and request your free report at Downsizing.com.au.
Because the only thing better than a beautiful new home is knowing exactly what it will cost.
Downsizing.com.au presents Our “TrueCost of Downsizing” series — helping Australians move with clarity and confidence.
- The New Way to Downsize with Confidence
- Top 5 Downsizing Tips — Now with TrueCost Insights
- What Will Downsizing Really Cost in 2025?
- The Hidden Costs You Can Now See with TrueCost
