Complete Guide to Retirement Village Costs in NZ (2025)
Understanding Retirement Village Costs in New Zealand
Retirement village costs in New Zealand can vary dramatically - from $350,000 entry prices at villages like Selwyn Village to over $1.5M at premium locations like Edmund Hillary Village. This comprehensive guide breaks down all costs involved, including hidden fees that can catch residents off guard.
2025 Cost Overview
- Entry prices: $350,000 - $1,500,000+ (Auckland highest, regional areas more affordable)
- Weekly fees: $45 - $250 (covers maintenance, amenities, some services)
- Deferred Management Fee: 20-30% of entry price (charged when you leave)
- Auckland vs Regional: Up to 60% price difference
Understanding the Real Costs
Cost Components
Entry Costs (One-Time)
- Capital Sum/Entry Payment ($350,000 - $1,500,000+)
- Administration/Establishment fee ($1,000 - $3,000)
- Legal fees ($1,200 - $2,500)
- Moving costs ($2,000 - $5,000)
Ongoing Weekly Costs
- Village Service Fees ($45 - $250 per week)
- Utilities (if not included) ($25 - $45 per week)
- Care services (if needed) ($150 - $400+ per week)
- DMF accrual (20-30% over 3-5 years, paid on exit)
Real Pricing Examples: Auckland, Wellington & Christchurch
Important Note
Prices shown are indicative based on 2025 data and vary by unit size, location within village, and current availability. Always confirm current pricing directly with the village.
Auckland: Selwyn Village (Pt Chevalier)
Studio Apartments
$350,000 - $450,000
Weekly fees: $45-55
DMF: 30% over 5 years
1 Bedroom Units
$450,000 - $550,000
Weekly fees: $50-60
DMF: 30% over 5 years
2 Bedroom Villas
$600,000 - $750,000
Weekly fees: $55-65
DMF: 30% over 5 years
Auckland: Edmund Hillary Village (Remuera)
1 Bed Premium
$650,000 - $850,000
Weekly fees: $85-105
DMF: 25% over 5 years
2 Bed Luxury
$950,000 - $1,300,000
Weekly fees: $95-125
DMF: 25% over 5 years
Penthouse Villas
$1,300,000+
Weekly fees: $125-150+
DMF: 25% over 5 years
Deferred Management Fees Explained
Critical to Understand
The Deferred Management Fee (DMF) is often the least understood but most significant cost. On a $500,000 village entry, a 30% DMF means you'll pay $150,000 when you leave - regardless of how long you stay.
How DMF Works
- Accrues over time:
Usually builds up over 3-5 years to maximum percentage
- Paid on departure:
Deducted from your capital sum when you leave
- Varies by operator:
Ryman: 20-30%, Summerset: 20-25%, Others: 25-35%
DMF Calculation Example
Village Entry Price: $600,000
DMF Rate: 30% (accrues over 5 years)
Year 1: 6% = $36,000
Year 2: 12% = $72,000
Year 3: 18% = $108,000
Year 4: 24% = $144,000
Year 5+: 30% = $180,000
Maximum DMF: $180,000
Financial Planning for Retirement Villages
Traditional Options
- Home Equity Release
Use your existing home's value
- Retirement Savings
KiwiSaver and other investments
Alternative Solutions
- Deferred Payment Options
Pay part of the cost later
- Rental Options
Some villages offer rental units
Retirement Village Costs: Frequently Asked Questions
How much do retirement villages cost in Auckland?
Auckland retirement village entry prices range from $350,000 (Selwyn Village studios) to $1.5M+ (Edmund Hillary Village premium units). Weekly fees range $45-150. The city's high property values make it NZ's most expensive retirement market.
What is included in weekly fees?
Weekly fees typically cover property maintenance, gardens, amenities (pool, gym, library), emergency call systems, administration, and some utilities. They don't usually include personal care services, which cost extra if needed.
Can I get my money back if I leave?
You get back your original capital payment minus the Deferred Management Fee (20-30%) and any exit costs. If your unit has increased in value, you may receive some of that gain, but policies vary by operator.
Are retirement villages cheaper than staying at home?
It depends on your situation. If you own your home outright, staying home is usually cheaper initially. However, villages can offer better value when you factor in maintenance, rates, insurance, and accessing care services as you age.
Need Help Understanding Retirement Village Costs?
Our retirement village cost calculator and comparison tools help you understand the true cost of different villages. Compare Auckland, Wellington, and Christchurch options with transparent pricing.
Sarah Johnson
Financial Advisor specialising in retirement village costs and contracts with over 12 years of experience. Sarah has helped over 500 families navigate retirement village pricing across Auckland, Wellington, and Christchurch.