What is the deferred management fee scheme?
The deferred management fee (DMF) scheme is the most commonly applied model used in villages throughout Australia. It provides an affordable accommodation option to the average senior without escalating property costs putting prices out of reach. Under the DMF model property developers/village operators reduce the ingoing contribution, or purchase price, by deferring their development margins until the villa is resold at a later date. At this time, a deferred management fee, or exit fee as it is more commonly known, is due. Whilst operating under the DMF model, Oak Tree offers flexible purchase options for those who wish to avoid DMF/Exit fees. It is also important to note residents do not pay Stamp Duty or GST on their purchase.
