Parkwood Trust
Who owns Parkwood Retirement Village?
Parkwood Retirement Village is incorporated under the Charitable Trusts Act 1957 and is a registered Charitable Entity. Parkwood began operating as a retirement village in 1971. The Trust is governed by a Board of Trustees, which includes professionals with a wide range of experience as well as two representatives elected by residents, all making their services available to the Trust on a voluntary basis.
What happens to the surpluses made in the Trust’s operations?
Surpluses are used to continually improve services and facilities for Parkwood residents.
What form of ownership do you have at Parkwood?
Residents at Parkwood purchase an Occupation Right Agreement (ORA). This is the most common form of ownership in retirement villages in New Zealand and gives the resident the right to occupy for life and use of the community facilities.
Parkwood Village
What is the size of the village?
The village comprises 209 villas, a 63 bed rest home and a 25 bed hospital.
What are the main features of the village?
The village is situated on just under 25 hectares of land, which provides low density housing.
There is a 24 hour on call Village Care service as well as many facilities, amenities and gardens.
Are all the villas the same?
No. The village has a wide variety of designs and styles of houses, ranging from one bedroom villas with no garage to two bedroom villas with study and garage.
Is there a waiting list?
Yes, although the length of wait depends on the type of villa wanted. Typically the wait is from three years for one bedroom villas, from seven years for an average two bedroom villa and more than ten years for our largest villas.
What is the minimum age of entry to the village?
The age of entitlement to NZ Super, which is currently 65 years.
What say do residents have in the running of the village?
The residents have two representatives on the Trust’s governing body, the Board of Trustees, who are elected by the residents. There is also a Residents’ Association that deals with resident issues. The General Manager works closely with the Residents’ Association and reports to the Board of Trustees.
Can you keep a pet?
Application must be made to the General Manager for permission to have a pet, which we will usually agree to for a small pet (dogs are generally not able to be kept in a villa).
Fees
Is there an entry fee?
Yes, there is a one off entry fee called a Common Facility Site Contribution. The Common Facility Site Contribution is $35,000 for villas and flats. The entry fee is always included in prices quoted to you.
How much of that fee do you get back on sale?
If you are at Parkwood in a villa or flat for less than one year, a portion of the fee will be refunded on a pro rata basis.
Do you have to pay a deposit to secure a villa?
Deposits are considered on a case by case basis, up to a maximum of 10% of the purchase price, and will be advised by the Village Manager. Should a resident wish to pay a deposit, they are able to do so.
What ongoing fees do you pay?
In the village you pay a monthly fee of $725 as well as an annual villa insurance premium, which is based on the size of the villa.
What does this fee cover?
The fee covers local body rates, external villa maintenance, village maintenance, grounds maintenance, 24 hour on call Village Care service, use of community facilities and most of the maintenance officers’ services.
How often are the fees reviewed?
Fees are reviewed annually, with any changes taking effect in May.
Do monthly fees stop when you are away on holiday or move to the rest home?
Fees do not stop while you are away on holiday; however when a resident moves into the rest home or hospital permanently, villa fees cease as soon as the villa valuation is agreed.
How are the fees set?
The fees are set on the basis of recovering the costs of running the village for that year.
What other costs are you responsible for as a villa occupier?
You still pay your normal household costs, which include power, gas, contents insurance, telephone and internal maintenance. Each resident receives an annual invoice for their villa insurance according to the size of villa.
Are there any fees or charges payable when you leave the village?
Yes, you pay a retention of 30% of the villa ORA value on settlement when you leave Parkwood. The 30% is calculated on the market value of the unit. If you are at Parkwood less than three years the retention will be abated on a pro rata basis, eg if you were at Parkwood eighteen months, the retention would be 15%.
What will you get paid when you leave and when will you be paid?
You will be paid the value of the ORA less the 30% retention when the ORA is sold to a new resident. The 30% retention is paid from settlement proceeds when the villa ORA is sold.
How is the villa valued?
The villa is valued independently at market value. This value is agreed by the parties before any upgrading work is undertaken. The Trust undertakes any upgrading work necessary on behalf of the incoming resident.
Do you receive capital gains?
Yes, you receive 70% of any capital gains made on the sale of a villa ORA, the value being agreed prior to upgrading work being undertaken by the Trust.
Are there any other exit fees?
Yes, the Trust charges an administration fee of $890 on the sale of the villa licence. This cost helps cover the valuation, cleaning and administration costs involved in the sale process.
Who controls the sale of the villa?
Parkwood does all the marketing and sales work for the ORA sales process.
Are there any fees or charges payable when you leave the Lodge?
Yes, you pay a retention of not more than 20% of the apartment ORA value.